LoanTap is an online platform offering flexible loans to salaried professionals.
Mumbai - August 29, 2016. RedNewswire/-
LoanTap is an online platform delivering flexible EMI-free loan and Overdraft products to salaried professionals, has announced securing funds worth $3 Mn in a Series A funding round.
The firm will use the funds to expand its operations in NCR, Mumbai Metropolitan Region, Pune and Bangalore. Nearly 85% of the funding will be used for onward lending by the platform, and remaining capital will be used to augment its technology and distribution frameworks.
Satyam Kumar, CEO of LoanTap, said, “Our platform was established for the millennials, keeping in mind the otherwise risk-averse low-salaried loan segment. The Series A investment is a strong validation of LoanTap’s robust business model and experienced promoters having a proven track record in technology, retail-asset underwriting and business scale-up".
"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. The funding will also enable us to grow in the loan market owing to our simple processes and product relevance", he added.
The company is headquartered in Mumbai with a back office in Pune, LoanTap follows an agency-based collection model catering to the low-delinquency salaried segment with job experience of two to five years.
The company was established in May, 2016 Satyam Kumar and Vikas Kumar. Satyam Kumar CEO of LoanTap has 17 years of experience in the loans business having worked with IndusInd Bank, Deutsche Postbank, etc. whereas Vikas Kumar CTO at LoanTap, has 16 years of experience in the software industry.
It aims to tap into the MSME sector with an average loan size of Rs 6 Lakhs by expanding to the top 10 cities of the country and reaching a book size of INR 750 crores in the next 3 years.
LoanTap does not operate on an aggregator model but directly dispenses loans through its in-house non-banking finance company.
It uses technology to deliver smart and innovative products for millennials. Borrowers can choose custom- made loan products from an array of offerings like Overdraft Facility, Credit Card Takeover Loans, Rental Security Deposit Loans, Advance Salary Loans and consumer durable loans.
Currently, the platform services 4 categories of loans- EMI-free loans where candidates pay interest on monthly basis and principal is paid as bullet payment, personal loans that are EMI based, personal overdraft which sets up overdraft in the corporate account, and special loans as credit card takeover, advance salary, and rental deposit.