Fintech Startup Basic Home Loan Is Making Home Loans Faster And Stress-Free With Its Automated Platform
In a survey conducted by BankBazaar, it was found that millennials (between the age group of 25 to 35 years) see acquiring a house as their biggest aspiration.
As housing is a fundamental need, almost every individual aspires to own a home. The government is also supporting people in getting their home and helping them through PMAY and “Housing for All” schemes.
Proving people with access to home loans, many startups have come up with their own solutions.
Today’s story is about an Indian fintech startup that offers an automated platform for secured lending with a special focus on the affordable housing segment.
Startup Story: Basic Home Loan | Build Your Home With Basic
Basic Home Loan Founder
Founded by Atul Monga, Pranav Khattar and Kalyan Josyula in 2020, Basic Home Loan is a fintech startup offering an automated platform for home lending in India.
The founding team has vast experience in the fintech industry. Atul, an IIT-Delhi graduate, has work experience in the Indian fintech industry. Atul has worked at iLoanz and Rubique.
Pranav, a graduate from the Goa Institute of Management, has also worked in HDFC Life and Lifestyle International.
Atul and Pranav had previously worked together at Policybazaar.
Kalyan is an MBA graduate from IBS Hyderabad and has worked in Rocket Internet, Awok, and Ola.
Atul and Kalyan worked together at Credit Suisse as part of its investment banking team.
Working with a vision to change the way Bharat (India) finances its affordable homes, Basic Home Loan aims to provide consumers with end to end fulfilment through technology for faster loan disbursements.
How Basic Home Loan Started?
While working in the fintech ecosystem, Atul found that the affordable housing market has huge potential, yet it is ignored by ecosystem players.
Also, Atul realised that the Indian mortgage market is still primarily offline, given regulatory and operational constraints, and major disruption can be made using technology.
So, he contacted Kalyan and Pranav and told them about the idea in 2019.
The trio started working on the idea and started Basic Home Loan to make home loans a faster and stress-free process.
USP Of Basic Home Loan
Offering an automated platform, Basic Home Loan focuses on affordable housing loans, which is currently the government’s priority under PMAY and “Housing for All” schemes.
Basic Home Loan follows a ‘Phygital’ approach to create a network of agents. These agents utilise technology in guiding consumers – from ‘research’ to ‘final disbursement’ of home loans.
The platform is easy to use. Customers just have to login to the Basic Home Loan site and choose the type of loan they want. After that, the customer service assists the individual in closing a loan at zero cost. The loan size can be anywhere between Rs 5 lakh to Rs 20 lakh.
“We generate business through our website and agent network. The customer hand-holding happens with our agents for end-to-end fulfilment at no additional cost. Everything from documentation to disbursement is done by our agent who is paid a commission on every successful disbursement. This results in customers getting better products through digital comparison, faster disbursements through agent-led fulfilment, and complete transparency of the loan process at the convenience of his and her home.”
Present Situation Of Basic Home Loan
As per the startup, it is on track to generate a revenue of Rs 2 crore for the first six to seven months of its operations in FY 2021.
As of March 2021, Basic Home Loan claims to have received about 1,500 home loan applications from 18 states and 60 districts in India. And, the startup has helped more than 500 customers in getting their home loans.
“At present, we are working as a broker for other banks and HFCs, but we are on track to set up our own lending and credit process.”
The fintech startup is aiming for a revenue of Rs 15-20 crore in FY 2022.
Future Plans Of Basic Home Loan
Basic Home Loan is working aggressively on its short and long term plans. In the short to medium term, the startup wants to set up its own credit through a risk-sharing First Loan Default Guarantee relationship with a partner bank. Also, by the end of FY 2022, Basic Home Loan wants to have its credit platform in at least 20 cities.
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