Strengthening its position in the integrated mortgage marketplace, Square Capital, the digital lending arm of homegrown proptech startup, Square Yards, has facilitated loan disbursement worth $1 billion (Rs 6,900 crore) since its inception in 2016. Square Capital is also in the final stages of launching a digital mortgage solution with some of the largest private sector banks in India.
Square Capital aggregates loan offers from financial institutions on a single platform and provides end-to-end fulfilment support in the lending process. It was started in 2016 to capture the captive home loan business originating from Square Yards’ real estate transactions but soon expanded itself beyond it and grew to be, what the company officials claim, “the largest integrated marketplace for secured mortgage industry in India.”
Growing at a rate of 56% CAGR in gross transactional value over the last couple of years, it is currently facilitating monthly loan disbursements worth Rs 250-300 crore, with home loans and loan against property contributing to 78% of the business. Currently, Square Capital has tie-ups with more than 95 banks and NBFCs and is facilitating more than 800 loan transactions for them on a monthly basis.
Tanuj Shori, co-founder and CEO of Square Yards and Square Capital, said, “This growth is especially remarkable since the entire housing finance and NBFC industry witnessed a chaotic period last year leading to liquidity crisis and constraining the opportunities for homebuyers. Focusing on maintaining a tech-led asset-light model, while remaining unit economics positive at the transaction level, we further aim towards double-fold growth by the end of FY20.”
Square Capital has developed online capabilities to provide accurate eligibility of an applicant linked to credit bureau and various banks’ product and credit policies, ability to perform e-KYC of clients, integration with NSDL and OCR-based document reading and direct integration with banks’ loan origination systems. It has an offline sales team that provides loan advisory and end-to-end fulfillment support —managing client documentation, sanctions and assisting the client till the entire lifecycle of loan disbursement.
