This Article was fact checked and last updated for accuracy on August 27, 2022 by Mani Karthik
In India, loans are something people look down up on. Because their experience applying for one is almost always negative. Almost everyone I know of tell me stories of how they applied for a personal loan or an education loan in India and got turned down by the bank. It’s not a pleasant experience even if you managed to get the loan. All those documentation, questions etc! Hah!
Well, startups like LoanTap are trying to fix this. They are a new breed of lenders that are hoping to offer loans (personal, education or others) to salaried individuals online and make the whole experience of loan application easy.
What is LoanTap and what are EMI Less Loans?
LoanTap calls their products “EMI less” But what does that really mean? Let’s say you are a salaried person with monthly salary of Rs.50,000.
Once you submit your loan application to LoanTap, your application is made completely online (including submission of docs etc) and once the amount disbursed to your bank account (which happens in 24 hours), you pay the interests monthly directly from your account.
For a loan of up to 4 Lakhs, here is the split that I’d have to pay.
Max repayment months – 60 months
Interest rate per month – 1.5%
Interest payable monthly – Rs.6000
Processing charges – Rs.9,200
So, for taking a 4 Lakhs loan, I’d have to pay a monthly interest of Rs.6000. Keep in mind that it doesn’t add up to the principal amount. Your principal amount stays the same as long as you are paying a “bullet amount”. LoanTap’s website doesn’t clearly tell you what happens when you pay off your principal amount, except that it reduces. Reduces by how much, what happens to my monthly interest rates etc.
So, on the outside, this sounds like a Payday loan company. It’s great if you have some immediate cash emergency and have no funds lying around to make use of. Instead of going to predatory private loan lenders, get an online EMI loan from LoanTap and when you get the money back or are in a good position to pay it back, pay the whole amount off.
The faster you pay off the loan, the better it is, as you will be keeping on paying the interest without reducing the principal amount. It is similar to cash advances from credit cards but the interest rates competitive and might appeal to those who wants cash for immediate emergencies.
Hi Manoj, please get in touch with them directly. I’ve been getting lot of negative feedback from users lately.
I applied 100000 loan and team collected all the documents and cheque also but almost 3 weeks over , did not get any update , APP1639099825369966
Fake website loantap.in ..to collect your personal info its playing fraud.. Be careful..
Very fast and good service, very reliable I have applied loan on 27th march by evening around 8pm I received the amount on 30th morning itself, hassle free loan, simple documentation and safe, very friendly customer support and , they were very helpful, marketing team is very active and supportive and trustworthy.I take pride in recommending others who are in need.
my app got approved and last movement… they have rejected…..fraud ..they are wasting the time…no update ..
I see this as a common problem from loan applicants to LoanTap. Hope they are already on it and not letting people know the status of their loan application.
Hi,
I my name is Nikhil, My number is **********, I have applied for Personal Loan on 20 March. But till date i have not received any call from your executive and i am not aware of the process. I have hear about loan tap process loan with in 24 hrs. But seriously i dont like the services of loan tap and if i think its fraud company just asking for document and not processing for loans. I am really disappointed from your services.