Matchmaking Matrix : How BASIC Home Loan is fulfilling India’s Housing Dreams

For BASIC Home Loan, identifying the best lender for its customers has always been a top priority. Established in 2020, the fintech startup is dedicated to supporting India's ‘Housing for All’ initiative. BASIC Home Loan is developing India’s largest online mortgage brokerage, making home loans accessible through doorstep fulfilment for low- and middle-income households in tier-2 and tier-3 cities. Central to this approach is the company’s proprietary Product Eligibility Matrix (PEM)- an innovative, fully automated system designed to match customers with the best-fit lenders from BASIC's network of over 90 partner banks and NBFCs.
Tailoring Loan Proposals to Meet Individual Borrowers' Needs

Explaining why BASIC Home Loan developed PEM, Atul Monga, CEO & Co-Founder, BASIC Home Loan states, “Choosing from a vast array of lending options can be mind boggling. Our Product Eligibility Matrix facilitates an easy and quick selection model, resulting in our login-to-sanction ratio standing at an impressive 75% to 80%, one of the highest in the industry. It uses advanced algorithms to evaluate a customer's eligibility for different lenders. This guarantees clients receive customised lending solutions, boosting their confidence in their path to homeownership.”

By analysing a comprehensive set of personal and financial information, the PEM helps borrowers choose the right loan provider. It collects data on income, property specifics, and loan requirements, comparing these against the criteria of various loan products. Integrating this with the applicant's credit score, this feature will ensure loan proposals are both accurate and tailored to the borrower's unique needs and preferences.

Consider the case of Ashish Arora from Gurgaon. Working in a startup, he encountered challenges in obtaining a home loan, with many banks reluctant to lend to individuals in his situation. Using the PEM feature, BASIC Home Loan identified banks that were more likely to approve his loan request. This approach saved Ashish significant time and effort, enabling him to secure the best loan for his needs.

Criteria Used by the PEM to Recommend Loan Products

The PEM provides loan product recommendations through a structured process, ensuring a perfect match for each customer. First, it collects basic information, including demographic data, financial data, property information and credit score, forming the foundation for eligibility analysis.

The tool then matches this information with the credit policies of the bank for various loan products from its partner banks and NBFCs, providing a comprehensive report detailing the maximum loan amount, credit terms, interest rates and fees for all eligible banks. This report helps borrowers understand their options and the next step in the loan process. Additionally, the tool collects applicants’ credit scores from integrated credit agencies, as these scores significantly impact loan terms and interest rates.

Based on this comprehensive assessment, the PEM calculates eligibility and generates a detailed report outlining the maximum loan amount, credit terms, interest rates, and fees for all eligible banks. This report helps customers and agents understand their options and the next steps in the loan process.

Benefits for Home Loan Borrowers and Client Partners

“The Product Eligibility Matrix feature not just helps borrowers choose the right lenders, it also helps the lenders reach out to their preferred customer segment,” said Atul.
Much like how an EMI calculator helps determine monthly repayments, the PEM tool assesses whether a borrower qualifies for a home loan and gives an immediate estimate of the maximum loan amount they can secure.
For borrowers, this translates to more informed financial decisions. Eligibility is quickly assessed based on key factors such as the Fixed Obligation-to-Income ratio (FOIR), Loan-to-Value ratio (LTV), and credit score—elements often overlooked by other calculators. Additionally, the PEM takes into account the credentials of co-applicants, offering a thorough overview of loan possibilities.
For client partners, the PEM enhances operations by automating eligibility checks, which speeds up decision-making and shortens the overall loan processing timeline. Another significant advantage of the instrument is its accuracy; it leverages demographic data, financial data, property data, and credit scores to minimise errors and provide accurate information.
Commenting on the impact and reach of PEM, Monga says, “Each client utilises the PEM to determine mortgage eligibility. So far, over 200,000 households have been supported by this tool. PEM ensures efficient handling of each inquiry, enabling BASIC Home Loan to deliver personalised solutions tailored to individual needs. Although it does not set specific annual targets, the PEM is integral to the company’s operations, maintaining a strong focus on accuracy and customer satisfaction.”
Looking Ahead

Going forward, a number of emerging trends are expected to revolutionise the home loan experience. Advances in artificial intelligence and machine learning will enhance decision-making processes and customer experiences by enabling more accurate credit risk assessments and diverse loan offerings.

Blockchain technology will provide a transparent and secure approach to transactions, while big data analytics will refine risk management and offer more customised solutions. Additionally, BASIC is also anticipating that efforts to improve financial inclusion will lead to innovative solutions for engaging underbanked individuals. “Given the transformative potential of tools like Product Eligibility Matrix, a shift towards new, integrated, and consumer-oriented experiences will cater to the growing preference for digital approaches over traditional methods. Undoubtedly, these advancements are set to shape the future of India's lending tech platforms,” adds Monga.