Homing In On Success
Atul Monga founded Basic Home Loan smack in the middle of the raging Covid-19 pandemic, cashing in on the renewed focus on home. The venture not only meant to empower people to own a home, it also ended up disrupting the stagnant landscape of housing lending. His strong vision for affordable housing as well as his background as an investment banker and angel investor led Germany's Picus Capital to participate in a successful seed funding round in July 2020.
His leadership at Basic Home Loan seeks to break down barriers faced by those from less privileged backgrounds, providing them with the dignity and social security that comes with homeownership. In a market saturated with fintech startups chasing higher margins through personal loans, Monga's strategic decision to focus on affordable housing lending sets Basic Home Loan apart. In just about 1,000 days, the company claims to have empowered more than 80,000 citizens from diverse backgrounds to own a home. Home loan disbursements soared from Rs 500 crore in FY22 to an impressive Rs 3,500 crore in FY23 under Monga's visionary leadership.
The Reserve Bank of India pegs the housing market in the country at nearly Rs 150 lakh crore. Over the past 11 years, the share of residential housing loans in total loans has risen from 8.6 per cent in March 2012 to 14.2 per cent in March 2023.
Catering Across Cities
Working at Credit Suisse in Singapore, Monga, a Mechanical Engineer from IIT Delhi, guided several Chinese startups through IPOs. Drawn to India by its thriving startup ecosystem and the fintech sector specifically, Monga learned extensively across startups, including unicorns like Policybazaar. He then went on to launch Basic Home Loan after gaining valuable insights from idea-stage ventures to established successes.
While advancements have been made in home loan accessibility through lower interest rates, government schemes, and digital platforms, challenges persist. High housing costs, substantial down payments and stringent credit score requirements continue to hinder potential homeowners. However, initiatives such as concessional loans and accessibility improvements are underway.
Along with Housing One of the biggest slogans of Indian socialism remains roti, kapda aur makaan — the basic needs of humanity. With the digital advent, Mongal and his team have ensured that people in not just Tier 1 locations, but also Tier 2 and Tier 3 areas have easy access to affordable home loans. He believes that housing is the first social security that grows a household to financial strength.
