The era of fintech has finally arrived in India. over the last few years, the section has acquired immense traction with a slew of players having emerged in payments, lending, insurance, and personal investments. While most of these are targeted at either personal or SME financing, what remain undisrupted and promising are the segments of housing finance and mortgages. Square Capital is the digital leading marketplace arm of Square Yards, and the former has boosted the latter’s market dominance by emerging to be the primary organized distributor of secured mortgages in India. Currently, going by the company’s claims, it facilitates INR 300 to 350 crores of total loan disbursements every month, with home loans and loan against property contributing to around 75% of the overall volumes.
It is also interesting to note that as India moves forward to a digitally-enabled economy, a key part of lending and loan disbursal process is also expected to move online. The home loan mortgages business in India is ready for disruption by fintech services marketplace like Square Capital that can take care of the entire customer journey, that encompass the search and discovery and the fulfilment of loans.
The company also has to further fortify its technological and analytical capabilities to develop an integrated paperless ecosystem for home loans using its strong partnerships with real estate developers, banks, and NBFCs. Launched in 2016, Square Capital was founded with the objective of capturing the home loan business originating from Square Yards’ real estate transactions. Currently, Square Capital boasts of tie-ups with over 65 banking and NBFC partners. Also, it has facilitated more than 800 loan transactions on a monthly basis.
According to Tanuj Shori, CEO and Founder of Square Yards, India’s real estate marketplace, facilitating a home loan mortgage transaction not only requires getting through the maze of complex valuation decisions, excessive documentation, and strict regulations but also a deep-rooted expertise of the underlying real estate value chain. It hardly comes as a surprise that a real estate player could have occupied this place, and Square Yards attempts to do just that with its mortgage arm, Square Capital. It has emerged to be one of the largest integrated mortgage marketplaces in the country.
With an aim for the future growth of the company, Square Capital aspires to become the largest online financial matchmaking platform in India, targeting comprehensive ecosystem growth, including customers, financial institutions, and influencers. Currently, the Square Capital team is working on an integrated tech platform to take the entire cycle of mortgage lending to an online platform. It will include, customer query, product policy check, credit decision making, online applications, integrated with the bank’s backend system and disbursal of loans.
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.