Taking a home loan after a property transaction is the most expensive borrowing that most of us would ever make in our lifetime. It involves whole life’s savings and encumbering oneself with lifelong EMIs. For such a vital decision, customers neither understand the fine print from various lending institutions, nor do they get unbiased advice to compare and discuss all the options under one roof. And when they get it in a learning and competitive environment, they make their decisions quickly.
Square Capital, the mortgage advisory wing under the aegis of Square Yards, today announced that it etched its mark in history by registering home loans worth 225 crores in just 2 days via a unique, first of its kind, finance workshop style home loan festival conducted in Mumbai. The financial Institutions who participated in the event were ICICI Bank, HDFC Ltd, Citibank, Standard Chartered Bank, Axis Bank & Aditya Birla Finance. There was a huge turnout witnessed for the event with 400+ customer registrations and approximately INR 2bn worth of home loans being registered under the advisory services of Square Capital.
The event was conducted in a finance learning workshop format where significant effort was put on educating the customers about various aspects of the borrowing process like interest rates, franking charges, multiple lender options, comparisons & documentation requirements. This was followed by a reverse pitching session where the lending institutions rolled out their best offers to the customers. On offer were best of deals and propositions from various banks in a healthy competitive atmosphere. Square Capital managed to get waive off on loan processing fee and Franking charges for the customers who registered on the spot. The loan processing is usually 0.50 – 1% of loan amount or INR 10,000/- + ST and Franking charges is approximately 0.20% of the loan amount.
Indrajit Sidhanta, Principal Partner & Business Head, Square Capital commented, “With Square Capital, we are creating a large advisory & aggregator business for mortgage industry in India. We are already among the top 5 in the country by revenues and are planning to significantly scale up the business through investment in technology. We are co-creating a platform that can manage the entire borrowing process on behalf of the client which includes credit scoring, helping choose of the right product from the appropriate lending organization, managing documentation, advising on professional issues pertaining to taxation & insurance and assisting the client till the entire loan is disbursed.”
Over Rs 20,000 crore worth of home loans are disbursed in India every month, as per a NHB report. The $250mn home loan mortgages advisory business in India is ripe for disruption by a true end to end service provider and aggregator that can offer unbiased and transparent advice to the customers and handholds them throughout their home loan journey from search, discovery to fulfillment and post transaction services.