SBI Card and London-based financial technology firm RedGirraffe have joined hands to facilitate online rental payments and aim to tap at least one lakh tenants by next March. The partnership aims to tap into the digital payments market which has gained traction in the country post demonetisation and real estate regulatory law.
RedGirraffe.com has launched a platform RentPay that allows such transactions to be made via credit cards and provides consumers an opportunity to strengthen their credit score and avail of cheaper home loans by up to 1 per cent annually.
With this tie-up, SBI Card, which has about 4 million customers, said it is “redefining” the way rents are paid as this platform provides a “trustworthy payment interface” between landlords and tenants. The company, a joint venture between State Bank of India and GE Capital, is also offering up to 45 days interest free credit.
RedGirraffe’s Founder and CEO Manoj Nair said SBI Card customers can now pay their rentals through their credit card and strengthen their score. “With a strong credit score they could then avail cheaper loans (as being offered by many banks), by up to 1 per cent per annum,” Nair told PTI. Nair expects 1,00,000 customers of SBI Cards using RentPay by March 2018.
He said the platform will revolutionise real estate transactions in India by infusing much needed transparency following demonetisation and the two new laws — Benami Transaction Amendment Act and Real Estate Regulation and Development Act.
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“After all, there could be no other offer as tempting as automatically qualifying to avail cheaper home loans while getting to pay your monthly rent via credit cards; all the while enjoying a 40-45 days credit period,” he said.
SBI Card CEO Vijay Jasuja said that through this collaboration, the company aims to assist users of the portal in hassle free rent transactions using the auto pay facility of SBI Card.
“We look forward to supporting RedGirraffe.com’s endeavour to provide differentiated real estate services that complement the evolving needs and lifestyles of today`s digitally savvy consumer, by extending our technologically advanced, user friendly payment platform,” he said.