LoanTap Financial Technologies, an online personal loan provider for salaried professionals, has closed its second round funding at US$4 million.

The round comprises a mix of equity and debt instruments from Kae Capital, India Quotient, IFMR Capital and MAS Financial Services. Kae Capital led this round.

With this investment, Mumbai-based LoanTap aims to bolster collection features in its software, besides reaching out to tier 2 and tier 3 (major capital cities and business hubs) of India.

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The latest funding comes a year after LoanTap received US$3 million in Series A investment led by Mumbai-based HNIs Abhishek Pandey and Jaysukh Sapra.

Founded in 2016 LoanTap has an in-house integrated loan processing platform to disburse loans in quick time. The platform combines a customer portal, loan origination, loan processing, loan management and accounting. A proprietary risk analysis platform allows LoanTap to automate a large part of the credit evaluation process.

LoanTap has an in-house non-banking financial corporation (NBFC) to lend money.

At present, the platform receives 5,400 to 6,000 loan enquiries every month. It has received more than 47,000 loan applications since launch. About 38 percent of LoanTap’s credit portfolio comprises EMI-free product, which requires an applicant to only serve monthly interest on the loan outstanding, while he/she can schedule principal payments based on his/her projected incentive or bonus credits. Under this product, an individual can avail loans up to INR 10 lakh (US$155,000). Interest on the loan has to be serviced every month. Principal repayment is proposed as bullet payment based on customer convenience.

LoanTap’s software carries out underwriting on each and every application, which involves IP address, social media and identity searches on individual profiles built over traditional underwriting.

Commenting on the development, Satyam Kumar, CEO, LoanTap, said: “We have been able to demonstrate that for discerning millennials, product experience far outweighs upfront pricing modules adopted by traditional lenders in India. Customers are choosing products that deliver flexibility, seamless experience and lifetime cost advantage over perceived financial benefits.”

LoanTap is competing with MoneyTap, an app-based consumer lending startup in Bangalore. Unlike LoanTap, MoneyTap works in very close partnerships with various banks and other financial institutions to make the credit-lending process quick and painless. The startup recently raised a total of US$12.3 million in funding led by Sequoia Capital India, with participation from existing investors New Enterprise Associates and Prime Venture Partners.