One of the key pillars of democratisation of India’s economic development is the availability of inclusive finance to millions of underserved Indians for owning a home. Today, to meet the “Housing for All” goal, India needs 19.6 million affordable homes; 11 million of these homes are needed in urban areas while the rest are in villages. Economically weaker sections (EWS) and lower-income groups (LIG) that comprise the informal sector account for 96% of the total housing shortage in India. Without a home, they find that opportunities for upward social and economic mobility remain severely limited, especially in urban India.

Lack of access to formal finance is the key challenge for this customer set. With majority of Indians from the informal sector still unbanked, providing home finance in a transparent and fair manner is our key goal. At Capri Global Housing Finance Limited, we’re empowering creditworthy, urban borrowers who are not eligible for loans from traditional financial institutions. This is where we’re making an impact.

Localised Customer Insights for Home Loans to Informal Sector Customers

Our customers, mainly from the unorganised sector, lack financial documentation or income-proof but are creditworthy and have the ability to repay. This is why, unlike traditional lending, we use scorecards and surrogate means to assess their income and creditworthiness. Our conviction comes from our deep micro-enterprise lending experience for MSMEs. It has enabled us to understand informal sector consumers in urban hinterlands, tier-II and tier-III cities and small towns, especially how they earn, spend and save.

With the firm belief that traditional financing needs to be reoriented for the informal sector, we leverage technology, trust and transparency to serve customers. Our field-based credit assessment with robust risk controls enables us to evaluate risks and ensure adherence to stringent standards of governance and regulatory requirements. Our branch network helps us build a deep relationship-driven approach with each customer at a local level. This helps us in arriving at an optimal home finance requirement, speedier disbursal and ensuring regular and disciplined collections.