Published date | 08 August, 2019

Loan disbursal process will eventually move online

The last few years have witnessed India gaining immense traction with an influx of players emerging in diverse segments such as payments, lending, insurance, and personal investments.

The last few years have witnessed India gaining immense traction with an influx of players emerging in diverse segments such as payments, lending, insurance, and personal investments. If you take a closer look at these tech start-ups, you will discover that most of these are targeted at either personal or SME financing. On the other hand, no attempt was being made to disrupt the largest and most promising segment of housing finance and mortgages. As India goes digital, it makes no sense that home loans remain nestled in the prehistoric era. This was the genesis of Square Capital, the digital lending marketplace arm of India’s largest real estate marketplace Square Yards.

It goes without saying that facilitating a home loan mortgage transaction involves a number of complicated steps, including complex valuation decisions, excessive documentation, and strict regulations. As India is moving towards digitally enabled economy, a substantial part of lending and loan disbursal process will eventually move to an online platform which will make it a faster and simpler process. In fact, Shori mentioned that Square Capital is working on an integrated tech ecosystem that will ensure that the entire end to end cycle of mortgage lending moves to an online platform- be it customer query, product policy, credit scoring, e-KYC and e-sign, disbursal of loans, and so on. in the long run, property developers will be brought onto the same platform. He added that Square Capital will also offer seamless real estate and mortgage services to all players in the ecosystem- customers, banks and property developers.

It goes without saying that despite the retail lending space in India being massive, it is also equally fragmented. Almost 50% of the business comes directly or indirectly from vivid small and big unorganized brokers or channels as it is economical for the bank. On the other hand, the online players manifest great efficiency in digital lead generation, but they do not have fulfilment expertise for loan disbursement. Consequently, there is a major gap which can be bridged through a hybrid online to offline (O2O) player. He went on to say that this will generate online leads at scale and be able to do fulfilment offline wherein one of the service advisor reaches out to client and assists him/her through the entire lifecycle of the borrowing process. 

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Square Yards is a technology-enabled, global real estate aggregator and India’s largest player for primary residential real estate. It’s subsidiary Square Capital is one of the largest marketplace for secured mortgages in India. Square Yards platform offers an integrated consumer experience & covers the full real-estate journey from search, discovery to research, transactions, home loans and post-sales service – fully integrating buyers to an extensive network of 500+ partner real estate developers, and 90+ banks & NBFCs. Square Yards is led by accomplished professionals, ex-bankers, and Ivy school alumni and is backed by the competence of more than 2500 employees in 30 cities and ten countries.