Mumbai-based Fintech startup LoanTap that offers loans for salaried professionals has raised has raised $ 3 million in a Series A round of funding from HNIs including Abhishek Pandey and Jaysukh Sapra, reports Business Standard. The fresh funds will be used for lending, and a part of it will also be used to upgrade the company’s technology platform and for expanding operations in Pune, NC cities, and Bangalore, added the report.
LoanTap is a Non-Banking Financial company that claims to offer loans without any EMIs and according to its CEO Satyam, the startup primarily is aimed at salaried millennials. “Our platform was established for the millennials, keeping in mind the otherwise risk-averse low-salaried loan segment. Instead of burning the entire capital on technology upgrades and distribution, we will chiefly utilize the money for creating end-user specific products and delivering it directly to retail customers,” Satyam told PTI.
Apart from EMI-free loans for salaried cutomers, it also provides personal loans up to Rs 10 lakhs on an EMI basis, and a personal overdraft facility on the basis of a customer’s CIBIL score. LoanTap also offers “Special Purpose” loans like “Advance Salary” loans, and long term loans for paying rental deposit charges. Users can login to the company’s website, and apply for a loan online by filling-out necessary details; a representative from LoanTap will visit the customer for collecting documents. The loan will be dispersed post all verification checks.
LoanTap’s main competitors include LendingKart, an online platform for lending aimed at small businesses and entrepreneurs. Lendingkart’s total funding stands at Rs 260 crore (~$41 million) after raising a Series B worth $32 million June, Series A worth $10 million in July 2015, and a seed round worth Rs 3.8 crore last year. Lendingkart has deals with CCAvenue, Paytm, Craftsvilla and Flipkart to provide merchants of these platforms financial assistance via loans.
Deal4loans is another startup that aggregates, markets and facilitate the sale of loan products and credit offerings from banks and financial institutions, and claimed more than 7 million direct customers when it raised $15 million in July. In April, Deals4loans raised an undisclosed amount of investment from a cluster of individual investors. Apart from this, Early Salary is a notable startup that offers instant loans up to Rs 30,000 with short term repayment duration of 15-30 days. The company has raised $1.5 million seed funding in November last year.
SwitchMe allows customers to transfer their home loan to a lower rate of interest by helping them switch between lenders. It does this by providing loan-related information through its online website, while claiming to do all legal paperwork with the least intervention from the customer’s side. In April this year, it raised an undisclosed funding.
Bangalore-based Loanzen raised an undisclosed amount of seed funding in March. The startup helps businesses without collateral, or businesses that are less than 3 years to meet short term cash-flow gaps by offering them short tenure loans. It used the funding to tie up with hotel aggregator Treebo Hotels to provide credit support to the latter’s hotel partners.
Snapdeal in March 2015 bought majority stake in Gurgaon-based RupeePower, a similar financial products and services platform. Snapdeal said it would offer a financial services like home, auto and personal loans, credit cards and extended warranty among other services through the acquisition.