Paisabazaar Strengthens Focus on Home Loans, Aims 50% Disbursal Share

• Paisabazaar has invested in creating its own distribution & last-mile fulfilment capabilities

• Paisabazaar is focussing on Delhi NCR, Mumbai and Bengaluru, which together form over 30% of the total home loans market

Paisabazaar, India’s leading marketplace for consumer credit and free credit score platform, is strongly focussing on scaling its Home Loans and other secured loan products, with an aim to take the share of secured loan disbursals to 50% of total disbursals through the platform.

Typically, secured loans, like Home Loans and Loan Against Property (LAP) contributed 13%-15% of disbursals through Paisabazaar till last financial year. Both Home Loans and LAP have a massive market, with disbursals at around INR 14 lakh crore on an annualised basis, according to Paisabazaar’s internal estimates.

Naveen Kukreja, Co-founder & CEO, Paisabazaar, said, “The overall macros for India’s consumer credit market remain strong and conducive for long-term growth. For us as a business, while unsecured credit would continue to be the backbone of our growth, we also recognise a big opportunity to go deeper and scale secured loans, especially home loans. Since home loans as a category is largely offline and last-mile-driven, our focus is largely on building our distribution and fulfilment capabilities. Our strong brand and large scale would also be key drivers for us in strengthening the secured business.”

Paisabazaar, currently, is focussing on Delhi NCR, Mumbai and Bengaluru, which together form over 30% of the total home loans market, according to its estimates. It is strengthening its FoS teams to build a strong offline presence in these three cities.

Sahil Arora, Chief Business Officer, Secured Loans, said, “We are setting up our presence where the consumer is physically present, to provide end-to-end assistance in what usually is a long and complex process for a large set of consumers. Our key focus areas are to build last mile capability, scale distribution and add genuine consumer value through wide choice, personalised and unbiased advice along with end-to-end assistance.”

As a marketplace platform, a key part of Paisabazaar’s secured growth strategy also lies in building and strengthening partnerships with Banks and HFCs across the ecosystem.

While Home Loan and Loan Against Property remain largely offline businesses, Paisabazaar says that over the next couple of years, it would also work with partners to digitise certain parts of the process, which should lead to lesser leakages and better conversions.

“We saw the industry come together to build end-to-end digital processes for unsecured loans post Covid. The onus now lies with the industry to focus on building digital capabilities for secured loans. For instance, the industry should digitise the sanction process for home loans, while the property evaluation and documentation can continue to be offline,” said Naveen Kukreja.

Along with scaling up its Home Loan and Loan Against Property businesses, Paisabazaar is also focussing on setting up and building new secured categories like Loans Against Securities, Loans Against Car and Gold Loans.

Scaling secured lending would help Paisabazaar build a more diverse and robust business that can smoothly glide through uncertain external environments and credit cycles. Paisabazaar for the last 4-5 years has also been focussing on building co-created products that build trail revenue streams, adding to the robustness of business. A large scale secured business would make it an even healthier business.

About Paisabazaar

• Paisabazaar is India’s largest marketplace for consumer credit and free credit score platform. It is part of the PB Fintech Group (listed on Indian stock exchanges since 2021)

• Over the last decade, Paisabazaar has earned the trust and goodwill of over 45 million consumers from 823 cities and towns across India.

• Every month, the platform receives over 20 lakh enquiries from more than 1000 cities.

• Paisabazaar over the years has built deep partnerships within the lending ecosystem, partnering with 60+ Banks, NBFCs, NBFC fintechs, to offer wide choice

• Paisabazaar has been running India’s largest credit awareness initiative, by offering consumers their credit score from the credit bureaus for free

• Paisabazaar’s co-created strategy helps meet consumer need gaps, through a robust array of exclusive, first-in-market and best-in-class digital products, built with partner Banks and NBFCs

• Paisabazaar is also an ISO (27001: 2013) certified organization with industry-best controls, to safeguard the best interest of consumers. We are also a PCI DSS certified organization.