Fintech start-up MoneyTap has launched a credit line app in partnership with its banking partner RBL Bank. Using the app, a salaried employee can borrow as little as ₹3,000 or as much as ₹5 lakh from a bank.

Credit line is a fairly new concept in India, and is an arrangement between a bank and a customer that establishes a maximum credit balance the lender permits the borrower to access or maintain.

With this app, a salaried employee can avail themselves of credit line of up to ₹5 lakh, depending on individual credit history, without any collateral or paying any interest, said Bala Parthasarathy, co-founder and CEO, MoneyTap.

Against this limit, consumers can borrow money and repay it as EMIs from two months to three years.

Harjeet Toor, Head - Cards, Retail and MSME Loans and Financial Inclusion, RBL Bank, said the interest will be charged only on the amount borrowed and the remaining limit is available to the customer, at no cost.

The limit also gets automatically replenished as soon as EMIs are paid back, Toor added.

Any salaried employee — to start with those in main metros such as Mumbai, Chennai and the NCR — can download the free MoneyTap Android app. Using a patent-pending chatbox interface, the app provides all the information typically required by banks, according to Parthasarathy.

No physical documents such as salary slips need be provided. Though all actions are initiated on the MoneyTap app, as per RBI guidelines, all financial transactions — such as billing, repayment or withdrawals — will directly be with the bank using secure APIs.

Parthasarathy said that going forward, this facility may be extended to self-employed persons as well.

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