Square Capital, the mortgage advisory arm of real estate aggregator Square Yards, today announced that it has facilitated loan disbursals worth USD 120mn this fiscal, registering its name among top three loan distributors in India by value of loans disbursed.
Square Capital's mortgage advisory has been one of the fastest growing and the most profitable business for Square Yards and the company is on target to achieve a triple digit revenue growth for the mortgage advisory business.
Square Capital was started a year ago to capture the captive home loan business originating from Square Yards' real estate transactions but it soon expanded to other segments like Loan against Property (LAP) and steadily grew to be one of the largest distributor business for mortgage industry in India.
The business model is structured like a private banking business where a dedicated relationship manager helps the client during the entire borrowing process, which includes credit evaluation, helping choose the right product from the appropriate lending organization, managing documentation, advising on professional issues pertaining to taxation and insurance and assisting the client throughout the entire disbursement cycle.
The company has also started providing end to end financial advisory services to grade-A developers helping them in project financing, getting loan approvals from major lending institutions, structuring customer friendly payment plans and complete management of customer's loan operations process.
The team is now building the channel for the mortgage business using existing Square Connect network of real estate brokers and loan syndicators. It has already enrolled 18,000+ channel partners across 12 different cities and also tied up with 25+ top stock broking firms and financial institutions for the program.
Indrajit Sidhanta, Principal Partner and Business Head, Square Capital commented, "We are ramping up our connector network and planning to significantly scale up the business through investment in technology."
"We are co-creating a platform that can manage the entire borrowing process on behalf of the client from application to disbursement. We are integrating our systems with loan syndicators, credit rating agencies and back-end systems of lending institutions for providing a seamless experience to our customers," added Sidhanta.
The USD 300 mn home loan mortgages business in India is ripe for disruption by a true end to end technology services aggregator like Square Capital that can handle the entire customer journey from search & discovery to fulfillment and post transaction services.
