With the growing push for a ‘cashless economy’ as well as increased reliance on credit cards and other forms of personal credit, the fintech sector in India is booming. Banks and other financial institutions have already jumped on the bandwagon with online and app-based lending, but people looking for an instant loan still have limited options.

To provide for this need, many startups are creating financial products tailor-made for the Indian consumer. Among the first to offer a personal line of credit is MoneyTap, an innovative app that helps loan-seekers in the country access a credit line through their phones anytime and anywhere.

What is a Line of Credit?

The concept of a credit line isn’t too different from personal loans and credit cards. It’s basically a financial arrangement between you and a lending institution, which provides you with a loan that you can access at any time. You can borrow funds up to a maximum limit, and repay them according to the agreement made with the provider.

Like a credit card, repayments will recharge the available limit in credit lines, but interest rates are lower. And, unlike a personal loan, you only pay interest on the amount you use.

What are the Different Types of Credit Lines?

Here’s an overview of various lines of credit and how they work:

  1. Secured Line of Credit – This type of credit line depends upon collateral backing, where you provide an asset as security against the loan amount. If you do not make loan repayments on time, the lender can seize this collateral and liquidate it to recover their debt.

  2. Unsecured Line of Credit – This revolving line of credit doesn’t rely on collateral backing. Financial institutions charge different interest rates for these credit lines. Approval, interest rates and loan limits are usually based on factors such as income, age and CIBIL score.

  3. Personal Line of Credit – This can be either a secured or unsecured credit line that is used for immediate or long-term personal needs, such as weddings, medical expenses, travel and major purchases. You don’t need to disclose what the line of credit will be used for.

  4. Business Line of Credit – This type of credit line can be either secured or unsecured, and is provided to business owners and self-employed individuals for ongoing business expenses. It can help you maintain good cash flow and ensure vendor payments are made on time.

  5. Specific Purpose Line of Credit – This is a line of credit provided for specific purposes, such as home loan repayments, renovations, repairs, etc. Generally, this type of credit line is secured with collateral such as a property and needs to be repaid within a fixed timeframe.


What Are the Features of MoneyTap’s Personal Line of Credit?

MoneyTap, the first app-based personal credit line offered in India, is rather aptly called a ‘Personal Loan 2.0’. Here’s why:

  • It’s super-flexible. You can borrow as little as ₹ 3,000 all the way up to your maximum available limit, of up to ₹ 35 Lakh at any time.

  • It’s quite affordable. You only pay interest on the funds used, not the entire approved amount. No usage, no interest.

  • It’s totally fuss-free. There is no long or complicated approval process, and you don’t need to provide a specific purpose either.

  • It’s virtually no-risk. You can choose a repayment term that works best for you, with no collateral or guarantors involved.

  • It’s always with you. The credit line is available for life, and every repayment recharges the limit available for future use.

  • It’s penalty-free. Making early payments or even paying off the full amount you have used will not incur fees or charges.

  • It’s feature-loaded. Not only do you get instant credit, but also a credit card that offers various rewards and discounts.


It may have been a long time coming, but an app-based line of credit is just what we needed. Quick, incredibly flexible and packed with extra benefits, MoneyTap is the end of your financial worries! Download the MoneyTap app now and get approved in just 4-minutes.
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