Q1. Could you start by giving us a brief overview of your professional background, particularly focusing on your expertise in the industry?

Head – Product Development, Real Estate Finance Unit 

State Bank of India, Corporate Centre, Mumbai 

(2019–2024) 
 

• Led the Product Development Department of SBI’s Real Estate Finance Unit, managing an Asset Under Management (AUM) of ₹7 trillion. (now grown to Rs 
• 8.5 trillion) 
• Oversaw the design, implementation, and review of national and regional-level policies, products, pricing strategies, and market penetration initiatives related to Home Loans and associated offerings. 
• Developed geography-specific products tailored to micro-market needs, improving customer reach and relevance. 
• Conducted continuous performance monitoring, including traction analysis, delinquency review, and Return on Risk-Weighted Assets (RoRWA) benchmarking to ensure competitive and profitable pricing. 
• Achieved market leadership in the Home Loan segment with over 20% national market share. 
• Championed micro-market and tier-wise penetration analysis to identify underperforming regions and implement targeted corrective strategies. 
• Spearheaded a structured mentoring framework to manage both portfolio growth and asset quality—resulting in annual incremental growth of ₹1 trillion and delinquency levels below 0.50%. 
• Digitally transformed 80% of Home Loan processes, significantly reducing turnaround time (TAT) and enhancing customer satisfaction. 

Q2. How have recent policy changes or regulatory directions influenced trends in affordable housing or priority sector lending? 

Key Policy Developments in the Home Loan Sector 

• Introduction of External Benchmark-Linked Floating Rates: The requirement that all new retail floating-rate house loans from Scheduled Commercial Banks have floating interest rates based on external benchmarks (such the RBI's repo rate) was one of the biggest regulatory reforms. The competitive pricing practices of public sector and major private sector banks have a significant impact on market dynamics, even though NBFCs, HFCs, and other financial institutions are still free to provide house loans at higher rates.
• Affordable Housing – Risk-Based Pricing: 
  Despite employing the same benchmark- based pricing structure, financial institutions have adopted slightly higher risk-based pricing for affordable housing loans due to increased delinquencies in this market. The market has come to embrace this strategy for striking a balance between asset quality and financial inclusion.
• Revised PSL Guidelines  –  Boost to Housing Finance:  The increase in house loan limits available under Priority Sector Lending (PSL) was a significant governmental initiative. Because property prices vary by location, these restrictions are currently established according to population classification (Metro, Urban, Semi-Urban, and Rural). Banks are now able to reach their targets more naturally thanks to this recalibration, which has increased eligibility for affordable home loans under PSL rules and decreased reliance on expensive PSL certificates or investments in the Rural Infrastructure Development Fund (RIDF).
• PMAY 2.0 – A Game-Changer for Affordable Housing : A historic policy decision, the introduction of Pradhan Mantri Awas Yojana (PMAY) 2.0 has given the affordable housing market a lot of impetus. The scheme's back-ended interest subsidy of up to ₹1.80 lakh per recipient is a crucial component that has significantly increased the affordability of homes for first-time purchasers from low-income and economically disadvantaged groups. In addition to making homeownership more accessible, this subsidy serves as a potent demand-side inducement, giving banks and other financial institutions the confidence to grow their portfolios of affordable housing. As a result, PMAY 2.0 has become an essential facilitator of equitable housing financeand has supported initiatives to expand Priority Sector Lending in this area.

Q3. How is AI transforming the way banks and housing finance companies engage with customers — particularly in pre-loan advisory or post-disbursal service? 

AI holds immense potential to enhance both pre-sanction and post-sanction processes in housing finance by improving customer targeting, risk assessment, and lifecycle management. 
 
Pre-Sanction Applications 
 

• Lead Identification: AI can more precisely and effectively identify high-potential leads by combining and analyzing data from various sources.
• Enhanced Credit Risk Scoring: AI is able to analyze digital, transactional, and behavioral footprints in addition to standard credit bureau scores to determine creditworthiness and allocate a dynamic risk premium.
• Income Projection & Repayment Capacity: AI algorithms are able to predict future income growth, which is particularly important for long-term loans like home loans and helps with improved underwriting.
• Tailored Product Offering: AI may help comprehend client requirements and preferences by providing a virtual environment for perusing and selecting appropriate dwelling inventory possibilities.

Post-Sanction Applications 

• Lifecycle Needs Assessment: AI is able to forecast the borrower's future requirements, including improvements to the home's furnishings or restorations.
• Cross-selling & Upselling: AI can suggest pertinent banking or financial products based on user behavior and transaction trends. 
• Customer Retention & Referrals: AI powered engagement technologies can increase client happiness and produce high-quality referrals for new clients.

Q4. What segments do you believe will drive the next wave of growth in the housing finance sector — from both demand and supply perspectives? 

Shifting Home Loan Demand – Emerging Geographies 

The demand for home loans is witnessing a structural shift, gradually expanding into Tier II and Tier III cities. In contrast, Tier I and metro centers are experiencing demand stagnation, with property prices nearing saturation levels. 

However, the peripheral areas surrounding metros and Tier I cities are showing strong growth potential, driven by ongoing infrastructure development and improved connectivity. These emerging corridors are likely to witness increased housing demand in the near term. 

While Tier II and III cities are currently marked by robust demand, housing supply remains relatively limited. Encouragingly, with favourable government policies and improving affordability, new developers are entering these markets—unlocking significant growth opportunities for housing finance institutions. 

Q5. How are shifts in real estate prices and regulatory frameworks (like RERA) impacting the home loan market from a risk and opportunity perspective? 

Price corrections have been minimal, according to an examination of current home loan-linked property values in major centers. Mid-segment and sub-luxury housing may see price stagnation or even slight corrections in the near future, while super-luxury properties in metropolitan areas continue to see price increases. Due to increased demand, a few metro areas, including Mumbai, Delhi, and Pune, as well as a number of Tier II and Tier III cities, are anticipated to see modest price increases.

A revolutionary change in the real estate industry has been brought about by the establishment of the Real Estate Regulatory Authority, or RERA. By restricting previous abuses like budget diversion and numerous project delays, it has brought about a much-needed financial discipline among developers. Buyer confidence has increased as a result. RERA has proven to be a successful preventive measure, particularly in reducing financial wrongdoing and enhancing transparency, but its ability to be fully enforced in court has not yet been examined. 

The legal process is long drawn out, and a solid legal precedent is still being established. Nonetheless, the rigorous implementation of RERA has led to a notable reduction in abandoned projects and unethical behavior, increasing trust in the housing sector.

Q6. Where do you see the most untapped potential in the housing loan space — for example, in underserved geographies, age groups, or professions?

The Indian home loan market, while growing rapidly, remains structurally biased towards the salaried segment. Non-salaried individuals—such as small business owners, self-employed professionals, freelancers, and gig economy workers— continue to face significant barriers in accessing home finance at competitive terms.

1.Underserved Non-Salaried Segment 

• Traditional underwriting frameworks place excessive emphasis on stable monthly income and formal documentation, leading to lower loan eligibility and higher pricing for self-employed borrowers. 
• As a result, this segment is often pushed towards NBFCs and HFCs, where interest rates are significantly higher than those offered by Scheduled Commercial Banks. 
• A more cash flow-based credit assessment model, supported by GST data, bank statements, digital payment history, and utility bill patterns, can offer a more accurate view of their repayment capacity. 

2. Geographic Lending Barriers 

• In several semi-urban and rural markets, lending is constrained by unclear or disputed land titles, lack of digitised records, or unregistered constructions. 
• Financial institutions are wary of disbursing loans in these areas due to legal uncertainty and foreclosure risks. 
• There is a growing need for title insurance products, digitisation of land records, and supportive legal reforms to unlock lending potential in these markets. 

3. Youth and First-Time Borrowers 

• Loan eligibility for younger borrowers is largely based on their current income, ignoring long-term income growth potential, especially for professionals at the beginning of their careers. 
• Adoption of AI-based income projection tools, factoring in industry growth trends, educational qualifications, and historical salary progression, can enable more forward-looking loan structures. 
• This could significantly expand access for millennials and Gen Z, aligning with India’s demographic dividend. 

4. Gender and Informal Sector Inclusion 

• Women in informal employment, despite being low-default risk borrowers, are often excluded due to lack of formal income proof. 
• Tailored products backed by alternative data (e.g., SHG records, micro-loan history, digital footprints) can bridge this gap and promote gender-inclusive lending. 

5. Technology as a Leveller 

• Fintech-led underwriting, digital KYC, property valuation through AI/ML, and blockchain-backed land registry could significantly reduce TAT, costs, and risk—making smaller ticket loans viable and profitable. 
• Banks can also use AI to predict upgrade needs, anticipate cross-sell opportunities, and improve customer retention among non-salaried segments. 

Q7. If you were an investor looking at companies within the space, what critical question would you pose to their senior management? 

The home loan sector offers long-term stability and growth, but it requires a carefully crafted strategy, prudent capital deployment, and deep operational discipline. The following are key questions, which will be posed to senior management: 
 
1.    Return on Investment (ROI) – What will be my ROI? A Volume & Efficiency Game 

The segment is capital-intensive with low per-unit margins, making high volume and resource rotation essential. 

Profitability hinges on: 

Optimizing operating costs. 

Efficient capital recycling. 

Leveraging cross-selling (insurance, savings, top-ups) for ancillary income. 
 
2.Long-Term Strategy – What is your 5-Year Business Horizon? 

A well-defined 5-year roadmap is essential with break-even generally expected within 18–24 months. 

The plan must include: 

Year-wise volume, spread, and cost-income targets. 

Technology and manpower scaling. 

Exit or diversification options in case of external market shocks. 
 
3.Lead Generation Capability – Owning the Funnel 

In a highly intermediated market, the ability to consistently generate leads from: 

Builder tie-ups (especially under-construction properties). 

Real estate agents, digital aggregators, DSA channels. 

Direct-to-customer channels through digital campaigns and partnerships. Importance of building exclusive sourcing arrangements and reward-linked sales partnerships. 
 

4. Technology & Automation – Differentiator, Not a Choice Home loan customers expect speed, simplicity, and transparency. 

Must invest in: 

AI/ML-driven underwriting engines to evaluate salaried and self-employed borrowers. 

Digital KYC, e-signing, e-mandate, and workflow automation. 

Customer dashboards and mobile loan tracking. 

Leverage predictive analytics for delinquency management and product personalization. 
 

5. Skilled Workforce – Relationship and Risk Management Advisors and credit officers must be trained in: 

Home loan structuring, income and property assessment. 

Legal and technical due diligence. 

Relationship management with both customers and builders. 
 
6. Regulatory Compliance – The Foundation Strict adherence to: 

KYC/AML guidelines, RBI directives, RERA norms, and data privacy laws. 

Build robust compliance, audit, and grievance redressal frameworks. Engage with regulators and industry bodies proactively to align with emerging frameworks (e.g., digital lending guidelines, external benchmark compliance). 
 
7. Risk Management – Credit & Operational 
Develop risk-based pricing models incorporating borrower profile, geography, and collateral quality. 

Maintain early warning systems (EWS) to detect portfolio stress. 

Introduce robust fraud detection mechanisms using behavioral analytics. 
 
8. Geographical Strategy – Focus and Expansion 

Begin with high-opportunity micro-markets (Tier II/III cities, metro outskirts). Build depth before expansion—follow a “hub-and-spoke” model tied to property development hotspots. 

Consider co-lending models or digital alliances to scale without overextending infrastructure. 
 
9. Brand Trust & Differentiation- What are plans to build a brand? Home loans involve emotional and financial stakes; thus, trust and transparency are differentiators. 

Establish a customer-centric brand, focused on: 

Transparent communication, 

Fast disbursals, 

Post-disbursement service (upgrades, top-ups, references).