In this age of changing times and technology, it becomes quite inevitable to upgrade our mobile phones with the latest upgrade. Still, we do not switch to a high-end model because no matter how low the company unveils its phone, it is always out of our budget. Whether, it is One Plus 6 priced at 35000 INR or its equivalent Poco F1 phone priced at 21,000 INR, we are always short of money. No wonder, majority of us Indians aren’t ready to invest a lump sum amount for a mobile phone. I am sure all Indian moms would agree with this. After all, a new phone can wait but not the other things.
This is the reason why most of us push buying a new phone until of course our phone gets lost or is heavily damaged and is irreparable. Interestingly, much to our surprise, there is now even an option of flexible mobile loans in the market that help you buy your phone without any collateral or interest. Sounds too good to be true? Well, a Bangalore-based digital loan facilitating app – MoneyTap is making this possible by giving consumers the line of credit through a partner bank. Digital India campaign surely seems to be making some right noise.
So, How Does it Work?
To start with, you do not have to take a loan but use the MoneyTap app to establish a line of credit from the partner bank. Once, you have the line of credit, you can transfer the amount in your bank account as and when you need to buy your phone. You will have to repay the amount you used at the rate of interest that was agreed at the time of setting up the line of credit.
The good thing about this app co-founded by serial entrepreneur Bala Parthasarthy is that, they don’t charge interest on the entire credit line but only on the amount that you use i.e. the amount you transfer in your bank account or swipe a credit card that’s linked to your credit line to make your purchase, online or offline.
This personal line of credit is available 24/7 through your phone app. Whether you want to use the line of credit as credit card with reward points or transfer it in your account is totally upto you.
What are the Eligibility Criteria and Procedure to Get the Mobile Phone Loan?
Well, in order to avail the mobile phone loan, you will have to get the personal line of credit. To avail that, you should have these criteria –
- You either have to be a salaried employee with a take home salary of Rs. 20,000 or a self-employed professional with a monthly income of at least Rs. 20,000
- You should come in the age bracket of 23-55 years
- You should be a resident of the city that is in the company’s list – Mumbai, Delhi NCR, Kolkata, Chennai, Bangalore, Bhopal, Pune, Ahmedabad, Cochin, Chandigarh, Hyderabad, Vijaywada, Secundrabad, Jaipur, Indore, Surat, Rajkot, Gandhinagar, Coimbatore, Anand, Vadodra, Panchkula, Mohali, Vizag and others.
How do you apply?
In order to apply for the credit line, you will have to submit a valid ID Proof and address proof on the app or website. No, you do not have to go anywhere, everything happens digitally. A passport photo is not required, you can simply take a selfie. With the help of a chatbot interface, you can provide the necessary details. Once, the KYC verification is done, the money is reflected in your account. You can use this amount to buy your phone either by transferring the required amount in your bank or by using the credit card. There is a one-time fee of Rs. 500 once you get the line of credit. This is charged in your first bill.
Repay the Loan in Flexible EMIs
With flexible EMIs with 2-36 months, you can choose how to repay your credit. While selecting the amount you need to borrow, choose a repayment term as well as how many installments you want. You can compare interest rates and choose EMIs that work for you so that buying your new smartphone doesn’t clash with other financial obligations. In case, you wish to repay your smartphone loan early, you can do so and there are no foreclosure charges on it.
Another added benefit of MoneyTap is that, you can avail line of credit well in advance and use at your own time. Now that one can avail as much as Rs. 5,00,000, this one is a financial backup for emergencies. Want to see how it works for you, try downloading this credit card loan app and see if you can avail instant credit for your financial needs.