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India’s MoneyTap gets licence to operate as NBFC

MoneytapIndian fintech firm MoneyTap has received a licence to operate as a non-banking finance company from the central bank, according to news reports.

MoneyTap provides personal credit through a mobile app, in partnership with banks. It caters to middle-class customers in over 40 cities in India, according to its website. It provides small-medium cash loans, quick credit on mobile and flexible EMIs.

“We will be using the licence to enter into co-lending with our lending partners, offer better interest rates for our customers and, in this way, put some skin in the game,” said Bala Parthasarathy, chief executive officer, MoneyTap, according to the reports.

The Bengaluru-headquartered fintech had earlier teamed up with RBL Bank to offer a line of credit for consumers. It works with two banks and four NBFC partners, the reports added.

MoneyTap, which started operations in 2016, has created a total loan book of INR 10 billion ($139.5 million) and has achieved a disbursal run rate of INR 25 billion ($348.8 million) a year.

“India has a huge middle-class population that often needs additional funds to manage unexpected expenses, weddings, travel, education, festive shopping, etc. This is where a credit line comes in handy. An NBFC license will play a crucial role in further streamlining our business and accelerating innovation while keeping the customer at the centre,” Anuj Kacker, COO & Co-founder, MoneyTap said, according to the reports.

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