Online lending startup MoneyTap has raised $9 million in Series A funding led by Sequoia India, New Enterprise Associates (NEA) and Prime Venture Partners. The company offers a credit line of Rs 5 lakh to salaried professionals without any collateral. It has partnered with RBI Bank to offer the credit line but the company says that it will be partnering with six other Banks and NBFCs. MoneyTap also plans to expand to 50 cities by the end of 2017. MoneyTap is different from other lending startups in that customers will be able to borrow against the credit line. Customers do not pay interest on the credit line amount but instead can borrow smaller amounts, say Rs 3,000, and pay interest only on the amount. The company says rates can be as low as 1.25% per month. The limit gets automatically replenished as soon as EMIs are paid back. All actions are initiated on the app, but all financial transactions such as billing, repayment or withdrawals will directly be with the bank using secure APIs. Qualified customers, after completing the KYC, will pay a one-time setup fee of Rs 499 (plus tax) tax in the first month's bill from RBL Bank. MoneyTap says it evaluates the user’s eligibility in less than 4 minutes after which it decides on the customer's application the credit line amount they are eligible for. Users also get an RBL and MasterCard card with the sign-up. Kunal Varma, co-founder told MediaNama earlier that it is an open loop card which can be used…
