Why Home Loan Borrowers Can No Longer Trust a Single Recommendation

New Delhi [India], August 19: A borrower visits three bank branches in a week. Each one calls its offer the “lowest rate available.” A Direct Selling Agent (DSA) suggests a fourth lender entirely. By the time the loan is sanctioned, the interest rate, processing fee, or repayment terms rarely match what was first discussed.

The question borrowers are left with isn’t whether they got a loan; it’s whether they got the best one, or simply the one someone chose to show them.

Real Problem Isn’t Lender Availability; It’s Who’s Choosing For You

India doesn’t have a shortage of home loan lenders. It has a transparency problem in how those lenders reach borrowers.

A bank relationship manager can only offer that bank’s products, regardless of whether a competitor has a better rate or eligibility fit. DSAs fill a real gap (they save borrowers time and handle paperwork), but most borrowers have no visibility into how those DSAs are compensated, or whether commission structures differ from lender to lender. That doesn’t mean recommendations are added in bad faith. It means borrowers can’t tell the difference between a recommendation based on their financial profile and one shaped by a commercial arrangement.

For a commitment that runs 20–30 years, that gap matters, and it’s precisely the gap a lender-agnostic marketplace is built to close.

What Changes When Comparison Happens Upfront?

Urban Money’s model starts from the opposite direction: instead of leading with a preferred lender, it starts with the borrower’s financial profile and surfaces every eligible option (interest rates, processing charges, tenure, documentation, and turnaround time) before an application is filed.

The scale behind that comparison is not small. Urban Money works with over 100 lending partners spanning banks, housing finance companies, and NBFCs, and its AI-based eligibility engine matches borrowers to compatible lenders in seconds rather than the days it typically takes a relationship manager to run manual checks. The platform now operates across roughly 150–250 cities through more than 580 branches, and supports upward of 200,000 customer transactions a year. On the scale of disbursal alone, Urban Money facilitated close to Rs 15,000 crore in home loans in FY23, targeted Rs 30,000 crore for FY24, and (as the fintech arm of Square Yards) has been described by Square Yards’ founder, ‘Tanuj Shori, co-founder and CEO’, as having built the country’s largest mortgage marketplace.

That volume is the practical case for comparison: a platform running tens of thousands of borrower profiles against 100-plus lenders a year has the data to show, in real terms, where rates and eligibility diverge, something no single bank branch can ever show a walk-in customer.

Catching Rejection Risk Before It Costs Weeks

Loan rejections are frustrating largely because of when borrowers find out, usually after weeks of paperwork and evaluation, not before. The underwriting triggers are well established: most lenders now expect a CIBIL score of 700–750 or higher, and a Fixed Obligation to Income Ratio (FOIR) (the share of monthly income already committed to existing EMIs) of under roughly 50%.

A borrower can clear the credit-score bar and still be rejected if their FOIR, documentation, or property title doesn’t line up with a given lender’s specific criteria, and industry data shows loan originations have been growing more slowly and underwriting has been getting stricter, which makes pre-emptive matching more valuable, not less.

This is where a comparison-first, data-driven platform earns its keep: because Urban Money’s engine checks a borrower’s profile against multiple lenders’ live criteria simultaneously, it can surface where a mismatch exists (a FOIR that clears one lender’s threshold but not another’s, for instance) before an application goes in and a hard inquiry hits the borrower’s credit file, rather than after.

Leadership Perspective

Amit Prakash, Co-founder & CBO of Urban Money, frames the shift as one of borrower confidence rather than just borrower access: today’s borrower is far more informed than ever, but access to information alone doesn’t always translate into confidence, and people want transparency, genuine choice, and clarity about why a particular home loan is right for them.

Urban Money’s focus is on making the borrowing journey borrower-first by enabling meaningful comparisons across lenders, so customers make informed decisions instead of accepting the first recommendation they receive.

About Urban Money

Urban Money is the fintech and mortgage distribution arm of Square Yards, operating as a digital lending marketplace that lets borrowers compare home loan, personal loan, and business loan options from more than 100 banks, housing finance companies, and NBFCs on a single platform. Through lender-agnostic comparisons, AI-based eligibility matching, and borrower-first guidance, Urban Money has scaled to serve over 200,000 transactions annually across roughly 230–250 cities in India. Founded in 2014, it operates as part of the Square Yards ecosystem, supporting homebuyers from initial loan comparison through disbursal.

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