"MCLR is still work-in-progress in terms on implementation"
RBI has introduced new benchmark lending rate formula MCLR to improve transmission of policy rates. Customer can expect the fall but it would dependent on the inflation movement.
By Priyadarshini Maji
Tuesday, June 21, 2016
MCLR is still work-in-progress in terms on implementation. Manavjeet Singh, Founder & CEO, Rubique talks with Priyadarshini Maji about home loans, intrest rates and property prices.
Is it the right time to buy a property? Do you expect property prices and interest rates to go down further?
After the sky rocketed pricing of real estate in last couple of years, we have been experiencing slow-down in property transactions. Property valuation is largely dependent on the construction value which don't seem to go down so unless there is distress sales over unsold inventory, there would not be any change in the property prices. Even though RBI has introduced new benchmark lending rate formula (Marginal Cost of Lending Rate - MCLR) from April this year to improve transmission of policy rates. Customer can expect the fall but it would dependent on the inflation movement.
Can people transfer home loans through your website? Has there been any increase in such applications?
Yes, we do offer balance transfer product as well. Overall, due MCLR implementation & active participation by few financial institutions to pass rate improvement benefit to their customers, there has been traction for balance transfer cases in the industry. It's still too early for us to witness such trend.
Growth in home loans slowed down due to slump in the real estate market. How is the growth now?
We normally see property sale pick up during festive seasons i.e. post September-October onwards and that's where we witness growth in home loans too.
Currently for home loans what are the best available rates in the market?
Currently the lowest rate on home loan which is available in market is around 9.35% which can go upto 10-11%. But customer should keep in mind that these are just indicative rates which could subject to change based on various eligibility criteria set by financial institutions.
Are existing borrowers shifting from base rate to MCLR? How is the trend?
As mentioned RBI governor himself, MCLR is still work in progress in terms on implementation. There is still any specific trend to be witnessed.
How was last year in term of growth? What is your outlook for the next year?
We have done 6+ Crores of revenue since inception. Now we are witnessing better traction since April 2016, our gross revenue has been 1.5 crores month on month. We are constantly thriving to become the largest online marketplace for loans in the near future. Currently, operating in Mumbai, Delhi, Pune, Kolkata, Hyderabad & Bangalore, we aim to expand our horizons with offices in other locations. We will also be investing in sharpening our technology proposition to customers as well as FIs and establish ourselves as one of the few fintech players changing the landscape of the Indian lending space.
What are the services offered by your company?
Rubique is an online marketplace for financial products offering a wide range of loan products and end- to-end loan fulfillment to individuals and MSMEs. Rubique has introduced a tech-led lending solution which is unique in terms of its matchmaking algorithm and direct integration with Financial Institutions' lending systems. With this technology solution, the model is focused on disbursement rather than mere lead generation allowing customer to get the best deal in the quickest possible time while lowering the cost for customer acquisition for the financial institution.
How are your products different from others in the market?
We have enabled a single shot view of available offers to customers so they can take an informed decision. We are the first online platform which has gone beyond templated product like credit cards & personal loan to wide range products like home loan, business loan, working capital etc. spreading the portfolio across to serve individuals as well as small business owners. We offer wide range of products for over 9 product categories & offer multiple choices to consumer through 150+ product agreements we have across 60+ financial institutions tie-ups.
What is the most selling/ most popular product of Rubique?
For online channel, we have seen traction for products like credit cards, personal loan due to their standard & easy structure whereas our assisted online channel has witnessed growing traction for products like home loan, loan against property & SME finance.