MUMBAI: Paisabazaar is shifting its focus from unsecured to secured lending in the wake of RBI‘s directions on unsecured loans, which are expected to slow the segment. The company has partnered 25 lenders for secured loans and plans to become a major home loan distribution platform, offering a range of products including high-value mortgages, affordable housing loans, and loans against property.It plans to deploy 300 field staff in Delhi, Mumbai, and Bangalore which will cover 33-35% of the market and also distribute loans against securities on behalf of lenders.
RBI has recently increased the risk weightage on unsecured loans and expressed concerns about the high growth in this segment, as well as the rising bank lending to NBFCs involved in the business.
“The growth in unsecured loans was moderating. The secured lending market is about Rs 1.25 lakh crore a month in new disbursements while unsecured lending, which includes personal loans and credit cards, is about Rs 90,000. Eventually, we expect the ratio of secured to unsecured loans in portfolio to be reflective of the market,” Naveen Kukreja, co-founder and CEO of Paisabazaar, said.