Digital lending platform Square Capital, which is part of real estate marketplace Square Yards, is optimistic that credit momentum will be back in the next few days and expects the home loan market to pick up – this is because a number of NBFCs have raised external capital. Hence, they expect things to get back to normality in the next 15-20 days
Square Capital is one of the leading online distributors of secured mortage or loans. It has tie-ups with leading private sector banks and NBFCs to provide secured home loans and loans against property.
Talking to
Shori further added that India is a highly under-penetrated market when it comes to home loans, as there are no dedicated fintech players looking to serve the home-loan segment. Also, the number of new homes coming up every month is very insignificant.
“In the top 10 Indian cities, only 25,000 new homes are constructed every month, compared to one million homes a month in China. There is a huge room for growth in this market, and we are optimistic in the longer term,” Shori said, adding that the company, which started in 2016, has a run rate of ₹200 crore per month in loan disbursal. It does about 800 loan transactions on a monthly basis.
The company is looking to close the financial year 2019 with a total disbursal of ₹2,300 crore and, by 2020, it is looking to disbusre ₹4,000 crore.