CBDO Navin Chandani: Downtrend in interest rates has led to increase in home loan applications

By: | Published: August 31, 2017 3:34 AM

The company expects to see 100 million visitors on its platform in the quarter ending March 2018.

interest rates, home loan interest rates, home loans, home loan applications,, bank bazaar, Navin ChandaniA downtrend in interest rates has led to increase in home loan applications on (Representational Photo: PTI)

A downtrend in interest rates has led to increase in home loan applications on, the financial marketplace’s chief business development officer Navin Chandani tells Shritama Bose. The company expects to see 100 million visitors on its platform in the quarter ending March 2018, up from 44 million in the three months ended March 2017, he says. Edited excerpts:

How has business been since the beginning of FY18?

Business has been good. Things are growing. In fact, in July alone, we saw 17 million visitors to our BankBazaar marketplace. So year-on-year, we are growing 2x-plus in terms of visitors itself. That very clearly shows that consumers are ready. They are digital consumers who are looking for finance options and BankBazaar is seeing that growth. The second big trend which is good is that people who have an option to take a paperless financial product, we see a strong push in that, be it in credit products, insurance products or investment products such as FDs (fixed deposits) and mutual funds.

Loans worth how much have you disbursed so far this year?

That is something we don’t disclose. But, I can tell you that when we talk of credit products, it would include personal loans, it would include credit cards, it will include home loans and car loans — both unsecured and secured credit products. In that we are seeing — comparing July 2017 with July 2016 — all put together, we are seeing a 50% jump in applications. So the interest is very high.

How much of the applications you receive get converted into sanctions and disbursals?

Again, that depends on each and every partner (financial institution) and what their policies are. That’s something which we cannot share.

Could you give us a sense of what the mix of credit products is like?

What does the best are obviously credit cards and personal loans. They are unsecured. They take a higher chunk. However, in growth percentages, while these two are really growing at very high levels. This year in July, we saw home loans doing extremely well because of the change in the rate of interest.

What would your growth projection for the full year be?

For us, it’s all about the number of visitors. In the January-March quarter of 2017, we had 44 million visitors in all. We are looking at around 100 million visitors in January-March 2018.

Do you expect most of the traction to continue to come from unsecured credit products?

We have been in credit products for a long time, but we are also seeing a lot of interest in investments, and specifically in mutual funds. So we have various options, which includes a few liquid funds and ELSS (equity-linked savings scheme) or tax-saving funds, where we are seeing a lot of traction. In addition to that, we are seeing life insurance, specifically term insurance, doing well. There is also a jump that we have seen in general insurance for both car and health. I think you can’t limit it to just one category.

How has the overseas business been doing?

Singapore is the first market where we have seen traction. We are also looking at Malaysia. However, for now, it is focused in the way we were focused in India with credit products and specifically, to start off with, unsecured, and then move into secured credit.

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