30th September, 2022: LegalKart, a legal technology company, collaborates with BASIC Home Loan, a Gurugram-based fintech start-up revolutionising home loan lending in India, to assist buyers in their property buying journey and provide expert legal assistance service to its customers. This will ensure that customers have a convenient, transparent, and hassle-free home loan experience from end to end. Customers seeking a balance transfer of their existing home loan can also avail this facility.
The property verification report is the most important document before buying a property. As a part of the collaboration, a senior property lawyer from LegalKart will examine all the legal aspects of the property. They will examine the government records and available property papers chain to determine and confirm a property’s legal ownership and determine any claims on the property. It reveals any mortgages, liens, judgements, or unpaid taxes that will have to be cleared before the property can be sold; and details of any existing easements, restrictions, or leases affecting the property.
This will offer a safe investment in property, no fear of any hidden litigation or loans on the property, peace of mind at the convenience of your home and the ability to transact with complete confidence.
Through this partnership, Legalkart and BASIC are simplifying the process of availing a home loan by front-loading legal and technical issues that consumers face while availing a home loan. It will enable consumers to seek legal advice and access home loans more seamlessly than ever, using technology, while saving a lot of time, money, and resources. The key benefits include quicker loan processing, increased accuracy in borrower assessment, added convenience; and more transparency.
Dr. Arvind Singhatiya, Founder and CEO, LegalKart, said, “The reason we collaborated with BASIC Home Loan is that over 40% of users on the LegalKart platform express need for home loans. During the process of buying and registering a property, Property Verification is the first step before you decide to move ahead with the purchase. Most buyers spend months-first asking for and trying to procure the numerous documents, and then more time, effort, and money in trying to verify their authenticity. By tying up with BASIC Home Loan, we will be offering a Property Verification service, where the buyers can get all the documents verified quickly, easily, and conveniently from the comfort of their home.”
Founded in 2018, LegalKart claims that it has already served more than one lakh consumers and has over 10,000 lawyers on its platform across more than 900 locations, including multiple cities, districts, and remote regions in India. The Gurugram-based start-up is growing at a rate of 25% month on month and aims to double its customer base every quarter. It is also in talks to raise a Series A funding round by the end of 2022 to scale in international markets such as Southeast Asia, which is its key target market.
Mr. Kalyan Josyula, Co-founder & COO, BASIC Home Loan, said, “Buying a dream home, for most customers, is one of the most important purchases of their lifetime. Besides the financial eligibility, the legal and technical verification of property plays a vital role in the approval of home loan. Legal issues, which need to be handled with the help of an expert has been a major pain point for consumers and this partnership will help in bridging that need by reducing manual dependencies and automating the home loan journey”.
The home loan segment has seen robust growth in the current financial year, despite rising interest rates. According to RBI data, banks’ total outstanding home loans stood at ₹17.4 trillion in June, up 15.1% from the previous year. This is higher than the 11% year-on-year growth reported in June 2021.
BASIC has a phygital model, which is a combination of physical agents plus digital model which helps customers choose the right bank and get home loans without any hassle. The agent guides and assists the consumer throughout the entire loan process, free of cost. Furthermore, BASIC and Legalkart will offer cashbacks on processing fees, property report creation services when a home loan or balance transfer service is obtained, and additional offers from leading home furnishing brands to customers.
BASIC works closely with over 50+ bank partners and has successfully disbursed over 2500 crore of loans in over 50 cities in FY 22. The company is on track to achieve monthly disbursements of over Rs 1000 crore of home loans by March 2023.