The rise of investments in the personal lending industry led to rapid digitisation, encouraging the growth and development of the personal loaning industry. This in turn gave rise to a new breed of personal lending institutions, ‘FinTech’ based personal loan services which means you can now apply for personal loans from the comfort of your home.
This increased reach marked the emergence of a new wave of personal loans, different from the traditional personal loans offered by most banks, such as personal lines of credit.
MoneyTap is one such app based money lending solution that offers a personal line of credit to its users. With minimal registration and verification procedures, this app is changing how consumers previously interacted with money lending institutions and removes the need for red tape. Following is a detailed table provides a comparison between MoneyTap’s personal line of credit and a traditional personal loan:
Loan Terms and Conditions
|Approval Process||MoneyTap allows you to upload digital copies of the necessary documents and provides you with a pre-approved limit almost instantly after registration. Once the bank verifies your details, you can start using your personal line of credit right away.||In the case of a personal loan, your loan amount is approved depending on your eligibility and personal credit history the loan amount is approved. The loan approval process may vary depending on your credit rating and the nature of your personal loan.|
|Withdrawal Allowance||While MoneyTap approves personal loans of up to Rs 5 Lakh, it allows you to withdraw as much as you need, even amounts as little as Rs 3000. Withdraw your approved loan amount in lumpsum or in chunks, the choice is entirely yours. .||Once your loan amount is approved, the entire amount is credited to your preferred bank account.|
|Payable Interest||MoneyTap only charges interest on the amount you use and not the amount approved by the bank.||Traditional loans require you to pay interest on the entire loan amount irrespective of how much of it you actually use.|
Monthly EMI Terms and Conditions
|Repayment Conditions||MoneyTap not only allows you to decide your repayment cycle which includes the tenure and monthly installments amount, but also increases your loan limit each time you make an EMI payment.||With a traditional loan account, some banks do offer flexibility when deciding your monthly installment amount but your EMI payments make no difference to your exiting loan amount.|
|Payback Tenure||The MoneyTap app lets you choose to pay for the amount you’ve spent via monthly EMIS within 2 months, 12 months, 18 months or 36 months, which you also have the flexibility to change, based on your cash flow situation.||Banks require you to pay the fixed EMI for at least 6 months before allowing the option of prepayment (tenure differs from bank to bank).|
How Can You Access the Money?
|Cash and Card Facility||MoneyTap provides two options; you can get the desired amount credited to your bank account, you can opt for a MoneyTap credit card 2.0 and simply swipe it when necessary or withdraw it, based on your convenience.||When you use the money from your loan, you can only withdraw it as cash and use it from your account for online transactions. You do not get a credit card and any other benefits attached to the use of this money.|
As you can see, MoneyTap gives you your own personal line of credit directly on your phone!
This app-based personal line of credit not only saves the numerous hours spent at banks when applying for a personal loan, but also rids you of the need to show proof of requirements or having to go back to the bank for approvals each time you need a loan.
Once your line of credit is approved with MoneyTap you can continue to use it as and when you please without having to reapply for a new loan! What more can you ask for? Download MoneyTap’s instant loan app now.