By Akul Agarwal

In a country where home ownership is both a cherished dream and a complex financial endeavour, Credit Dharma is emerging as a game-changer. Established in 2023 by fintech veterans Akul and Rishu, the digital mortgage broker is on a mission to simplify the home loan process for millions of Indians.

Home loans are the most complex and broken financial products in the market. While banks see home loans as a significant revenue stream, the process remains daunting, especially for mid-ticket customers who find limited options and face transparency issues.

Here’s how Credit DHarma is changing the home buying experience for the average Indian:

Identifying the Need

India’s mortgage penetration stands at a modest 11%, significantly lower than the 60-70% seen in developed nations. Recognizing this disparity, Akul and Rishu established Credit Dharma with a clear mission: to simplify and democratise the home loan process. “Young people are buying homes earlier, with the average buyer age dropping from 34 to 32. This indicated a ripe opportunity for a tech-driven solution,” explains Akul, co-founder of Credit Dharma.

Simplifying Complex Financial Products

Home loans in India are often seen as the most complex and fragmented financial products. Traditional banks, while viewing home loans as lucrative revenue streams, have kept the process cumbersome, particularly for mid-ticket customers who face limited options and lack transparency.

“We wanted to create a streamlined and digital-first approach platform where homebuyers could navigate the loan process with ease, without the usual confusion and frustration,” Akul adds.

Comprehensive and Unbiased Services

The company focuses on three primary services: home loans, balance transfers, and loans against property.

“Traditional home loan agents are often unorganised and biassed, leading to misinformation and frustration for customers,” Akul points out. “We aim to organise the market by providing unbiased comparisons and partnering with all major banks to ensure our customers get the best possible rates.”

Empowering Through Education

The company’s commitment to transparency is evident in its service model. “We aim at educating their customers and providing authentic advice, ensuring transparency throughout the process.” added Akul.

This educational approach is reinforced through webinars and informative sessions designed to bridge the knowledge gap prevalent in the market.

Leveraging Technology for a Seamless Experience

At the heart of their operations is a suite of cutting-edge technologies designed to enhance user experience. “We have developed our own soft underwriting system, creating a fully digital journey for our customers,” explains Akul.

The proprietary soft underwriting system facilitates a fully digital journey, allowing customers to upload documents online for swift AI-driven verification. An innovative matchmaking algorithm analyses various banks’ credit policies to find the best fit for each customer, while a real-time loan tracking system keeps clients informed about their application status every step of the way.

Rapid Growth and Market Penetration

“Since its inception, we have seen impressive growth, disbursing loans totaling ₹100 crore within just six months. Our primary focus has been on middle-class families in tier-one cities, particularly first-time homebuyers aged between 32 and 40,” Akul notes.

The company has also made significant inroads with self-employed individuals, a group that traditionally faces hurdles in securing loans through conventional channels. “By targeting these specific demographics, we’ve been able to establish a strong foothold in a competitive market.”

Overcoming Common Challenges

Indian homebuyers frequently grapple with selecting the right property, ensuring its legality, and navigating a plethora of loan options. “We tackle these challenges by offering a transparent, digital process that simplifies financial decisions. We provide full visibility on charges, help customers compare rates, and offer tailored repayment strategies,” says Akul.

For those with limited credit history, Credit Dharma partners with specialised banks that cater to individuals with lower credit scores, ensuring that even customers who might struggle to find suitable loans elsewhere have access to the best possible options.

Setting It Apart in a Competitive Market

“What sets us apart from traditional banks and real estate platforms is our deep partnerships with financial institutions and our end-to-end digital approach,” Akul emphasises. While many competitors focus primarily on lead generation, Credit Dharma prioritises offering better rates, higher funding, and faster approvals through strong bank relationships.

Additionally, the advisory-first approach ensures comprehensive customer support from application to post-disbursement. “Traditional banks often lack the time to guide customers thoroughly. We fill that gap by providing comprehensive support throughout the entire process.”

Ambitious Goals and Future Innovations

Looking ahead, Credit Dharma has ambitious plans to expand its geographical footprint, bringing its services to more cities across India through strategic partnerships and collaborations. In the long term, the company aspires to become India’s largest digital mortgage broker.

To further enhance the home buying journey, Credit Dharma is set to introduce an AI-based home loan support application featuring an intelligent chatbot for real-time customer queries. Additionally, the upcoming Home Loan Manager app will empower customers to manage their loans effortlessly post-disbursement, offering functionalities such as tracking repayment schedules, monitoring loan status, and providing personalised repayment strategies to ensure financial well-being.