How often have you found yourself planning to shift to a rented house but having to pay a massive amount as security deposit? That pain could now be eased with online real-estate company Magicbricks introducing short-term loans in association with CASHe, a fintech startup.
CASHe is already into lending on its platform and this is a unique product the two companies have come up with and will start with six cities: Bengaluru, Pune, Mumbai, Delhi, Chennai and Hyderabad, offering the loans on its site where people search for flats or houses on rent. Other cities may get added later.
The way the loan product from CASHe has been structured is there is a ceiling of Rs 200,000 as far as the loan amount is concerned and the repayment can be done in six EMIs. There will be an interest component as well. Landlords demand varying amounts of deposits in different cities in India. Some ask for as high as 10 months’ rent while others insist on 6 months as is the practice in cities like Chennai or Pune.
CASHe will try and bring on the technology it uses on its lending platform that enables loan applications swiftly and if all boxes get ticked, the loan amount can be in the applicant’s bank account within minutes. A typical customer on Magicbricks site searching for a house can enjoy the same facility. Magicbricks says with every house displayed, the advance or security deposit will be indicated, and the loan amount specified. If you intend to avail the loans you only need to click on the link, and it will take you the special page created by CASHe within Magicbricks’ site and the process can be completed.
Of the almost 1 million properties listed on Magicbricks’ website, 250,000 will be having this loan against rental advance from CASHe linked.
Magicbricks claims to be enjoying a 60% market share in terms of the online property listings either for sale or for rentals.
CASHe on the other hand claims to have disbursed short-term loans to over 250,000 customers. The startup helps salaried employees with small amounts they may need to tide over emergencies and repay within 15 to 180 days. It’s a niche loan product and has a demand potential in an economy like India.