App-based lending firms gain traction 

HYDERABAD : The popularity of app-based lending is fast gaining traction offering products which traditional lending institutions overlook, providing a win-win situation for all the stakeholders.
Leading players in the segment like MoneyTap, EarlySalary apps have accounted for lakhs of downloads and has already served tens of thousands of customers. Another encouraging fact is more fintech startups are expected to pop up in this segment.

“In just over a year we have seen more than half a million downloads of our app. We have disbursed over `35 crore till now and served more than 25000 customers. Our USP is to provide ultra short term small ticket size loans and salary advances to young professionals, who will find it difficult to acquire the same from banks or NBFCs,” said Akshay Mehrotra, CEO of EarlySalary app explaining about the evolution of sector.

Mostly app based lending companies are focusing on young professionals, who do not have a credit history or who seek small size loans which banks normally overlook. These app based lenders are addressing this gap, thus coming in handy for both borrowers and banks and NBFCs.

“App based credit companies make the whole process of applying and acquiring loan extremely convenient. Since our launch in September 2016, we have attracted over three lakh users, majority of them aged between 28 to 32 with an average  monthly income of `30,000-40,000,” said Anuj Kacker, co-founder of MoneyTap. He added that MoneyTap has raised $12.3 million in funding to drive expansion in India.