Paisabazaar to scale up home loan products; aims for 50% disbursal share

Paisabazaar, India’s marketplace for consumer credit, is targeting a shift in its business model. The platform aims to increase the share of secured loan disbursals, particularly in Home Loans and Loan Against Property (LAP), to 50% of its total disbursals.

This is a marked increase from the 13%-15% contribution of secured loans observed in the last financial year.

According to internal estimates, the Home Loans and LAP markets have disbursal figure of approximately ₹14 lakh crore annually.

Naveen Kukreja, Co-founder & CEO of Paisabazaar, said, “While unsecured credit will remain central to our growth, we see a significant opportunity in expanding our secured loans, especially home loans.”

Currently, Paisabazaar is concentrating its efforts in key urban areas: Delhi NCR, Mumbai, and Bengaluru.

Together, these cities represent over 30% of the total home loans market.

To support its offline presence, the company is enhancing its Field of Sales (FoS) teams in these regions.

Sahil Arora, Chief Business Officer for Secured Loans, stated, “We are establishing a physical presence where consumers are located, offering end-to-end assistance to navigate the often complex loan process.”

While secured loans predominantly operate offline, the company plans to digitise certain aspects over the next few years to improve efficiency and reduce leakages.

Kukreja said, “The focus should be on digitising the sanction process for home loans, while maintaining offline evaluations for properties.”

In addition to Home Loans and LAP, Paisabazaar is exploring new secured loan categories, including Loans Against Securities, Car Loans, and Gold Loans.