Making your home loan rates tuned to market

Hyderabad: Helping their consumer not only in getting the best product while taking a loan but, also helping them till the closure of their loan, city-based startup, namely, Loanyantra, claims to be India's first and only online market place that monitors and manages your home loan and a transparent online marketplace for instant customised rate quotes on home loans.

Helping their customers with the end-to-end, comprehensive and hassle-free home loan process. Loanyantra is working for its consumers to pay less on EMIs & to close their home loans faster. Speaking to The Hans India, Vijayananda Reddy Kalluru, founder, Loanyantra, said "I'm a BITS Pilani graduate and was working for premium companies like Adobe, Motorola and I had a huge salary, so my CA advised me to invest my money in buying a property.

Being from Hyderabad I decided to buy a property in the city. So I pulled my own credit report to check my Cibil rating and it was good and the property which I was buying was premium. Since I I had a huge salary I realized I can get a good interest rate on my loan. I asked my builder about the banks they were in tie-up with and he mailed all of their details.

At that time Harsh, our co-founder, was working with ICICI Back and the rate of interest was 10.5 per cent and he gave it to me at 10.4%. I was intrigued by getting 0.1 percent discount as compared to the discount, after 20 years there will be a huge amount of capital that will be saved. However, after one year while I was submitting my home loan details for tax filing purpose to our HR I realised my home loan rate was increased to 10.6 per cent.

But when I compared it with other banks like SBI, HDFC and even ICICI, the rate of interest had fallen to 10 per cent and the rates have drastically come down but my interest rate was still higher than what was the market rate. I was very surprised and called up Harsha asking him about this confusion, to which he suggested that I visit the bank, pay a penalty and they will correct it to 10 per cent. I did that and almost saved Rs 26 lakh by making some payment.

That's when I realised this is a very big problem because most of the consumers when they take a loan they normally don't monitor it so. And I thought why not I build something where the consumer will be intimated about the change in market prices so that he won't lose money by negotiating for lesser interest rate."

"We have built some Unique Selling Points (USP) tools which help the consumer in reducing the rate of interest. The USP tool does nothing but continuously compare ongoing rates of the consumer with the current market. In case the consumer is paying a higher rate of interest, the tool will alert him to correct the same.

All the competitors in the market only help the consumer in getting a specific loan or will help you during the process. We do that and also post-the loan disbursal, we also help them in monitoring their rates of interest with changes in market rates," adds Vijayananda.

After doing all the competitive study and listed out the minimum things which are required and what extra thing which can be given to the consumer and decided to build this tool so that the consumer will be benefited out of it.