Home loan transfers is a difficult process, demanding a lot of time and energy. You have to spend weeks gathering information, putting your documents together and visiting the lender time and again to get the process completed. In the meantime, your life is put on hold.
Here’s a startup which has identified this pain point, and attempts to make this process a hassle-free affair and on top of that, help you save on your home loan. Founded by Aditya Mishra and Sourasis Roy in 2012, SwitchMe is a FinTech company which allows you switch your home loan interest rates to a lower per cent.
Recalling the inception of SwitchMe, Aditya said, “In 2011, I wanted to switch my electric bill to Tata Capital. I’d heard that I could cut down my bill by 30% but I didn’t know how to do it. Naturally, I discussed this with my friends and found that they were just as stuck as I was. And I discovered a bigger problem: Home Loan transfers.
At that time I had a comfortable job working at TCS as the Head, India for Core Banking Sales but I felt compelled to quit and start a company that would work to help the customer. The plan was to start with Electricity Switching using a technology that would then scale into larger problems like Home Loan transfers.
But the biggest hurdle was that the tech wouldn’t scale no matter what I did. And that’s when I got introduced to Sourasis. Sourasis is a bit of a stand-alone case because he’s a Mathematician turned programmer. He solves tech problems using Deep Mathematics. We discussed SwitchMe and how I wanted to use tech to help millions of people. Sourasis was totally fascinated with the idea of using technology to solve such a huge problem. Sourasis joined SwitchMe as the Co-Founder and Chief of Engineering and his approach helped us find a solution to our tech problem. Fondly called J.A.R.V.I.S by our tech team, this framework enables our Home Loan Advisors and Field Executives to serve our customers”.
Services Offered by the Company
The startup’s primary service is Home Loan Transfer. Most people don’t know that they can switch their Home Loan to a different bank. Transferring allows you to switch to the bank with the lowest interest rate. This decrease in the interest rate is what reduces the repayment amount and saves money for the customer. The company claims that its customers commonly save 10-15% of their remaining loan amount.
SwitchMe takes over the entire process of Home Loan transfer. Once you sign up with the platform, the company starts with an evaluation of your current home loan with the help of its back-end technology, and ends only once the process is complete, the loan has been switched and the new documents are delivered at your doorstep.
As per the company, its tie-ups with a wide spectrum of banks gives it the advantage of completing the 8 week process in just 3 to 4 weeks.
Technology Employed by SwitchMe
“Our technology is at the core of our services”, maintains Aditya. Everyone involved in the company’s service ecosystem including the customer, are connected, monitored, managed and advised through this technology in real time. This brings consistency of service across the board, improves efficiency exponentially and ultimately provides a great customer experience.
For example, SwitchMe’s on-field executives visiting its customers are powered by a tablet application that syncs with the core technology. All developments regarding a particular customer are updated to the system immediately and the relevant individuals are notified automatically. The next step for that customer is then communicated to the respective executives so they can start sprinting towards the goal immediately.
The core system in a way manages the entire business process for a customer at high precision and high availability basis.
As Sourasis elaborates, the company is creating value by making this difficult process easy. In this process, the platform works between the borrower and his banks. However, the company is not a neutral intermediary or agent of Banks. It actually acts on behalf of the customer and represents them to the banks. Customers appoints SwitchMe as their agent. This means that customers can hold the company accountable for its services.
The company charges a fee to the customer and in some cases to the banks also. The fee to the customers is in 3 slabs.
|Loan Value (Rs)||Fees (Rs)|
|Up to Rs 50 Lacs||5,000|
|50 – 1 Cr||7,500|
|1 Cr +||10,000|
Funding Status and Traction Details
SwitchMe claims to be seeing an organic growth of 30% month on month. So far, 1000+ homeowners have saved over 300 Crores.
The company is backed by 500 Startups, Rajan Anandan, Mohandas Pai and Hiro Mashita.
Face of India’s Financial Sector
Aditya believes that the Indian financial sector is transforming along 3 axes – Digitization, reach/inclusion and innovation. He said, “Each one of them is fundamentally changing how people manage their money. However, this transformation is led by technology companies like us and the regulator rather than the banks themselves. There are enlightened leaders at some Banks but they have a lot of inertia to overcome. I think that resistance to change is the biggest challenge. But we find that as long as we take care of the customer, everyone else aligns themselves to the customer”.
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