Pune Inc: Earn while you rent; how this fintech platform is revolutionising India’s rental ecosystem

“CIBIL, a credit information company, covers credit card transactions, car loans, and personal loans, among others for evaluating its score, but rental transactions that account for about 30 per cent of a person’s average salary in tier-1 cities are not considered,” explained Shetty, highlighting the fundamental disparity that inspired RentenPe.

Launched in 2022 in Mumbai after consultation with Ernst and Young and various stakeholders, including the Reserve Bank of India (RBI), banks, property owners and tenants, RentenPe emerged as a pioneer in rental payment recognition, introducing India’s first rent credit score and residence card.

“Major credit bureaus offer credit reports upon lender’s request, but no one tracks rental payments. Some Non-Banking Financial Companies (NBFCs) and banks have indicated that with over six months of verified rent payment data from RentenPe, they could introduce a ‘rent pay pull’ similar to these traditional credit pulls while approving home loans,” said Shetty, underscoring the platform’s potential to offer home loan accessibility.

India’s rental market shows immense potential for such innovation. According to the 2011 census, India hosts around 2.73 crore rented households, with Maharashtra claiming over 29 lakh of these, representing a 13.5 per cent share nationwide.

Smart renting

RentenPe’s digital Residence Card (R-Card) transforms how rental transactions are documented. “Once the tenant’s credentials are verified, they receive a unique 12-digit number that stores their payment information. The platform caters to individuals paying monthly rents between Rs 10,000 to Rs 2 lakh. Starting with a base score of 650, tenants can achieve up to 790 through consistent payments and active engagement. Through RentenPe’s partnership with NBFCs and fintech companies, the score of 790 can help qualify individuals for home loans,” explained Shetty.

“Tenants can access flexible payment options with low processing fees through UPI, credit and debit cards. For those paying over Rs 20,000 monthly rent, the platform offers up to one month’s free rent after ten consecutive timely payments. In the ‘Gullak’ scheme, tenants paying rent of Rs 10,000 and above can participate in weekly activities like Spin the Wheel, Scratch Card, and Quiz to earn redeemable points for future rent savings,” said Shetty.

“Understanding financial emergencies, we offer rental loans up to Rs 10 lakh. If someone faces salary delays, they can apply for security deposit loans or rent loans with easy repayment options,” added Shetty.

Empowering landlords

Shetty said residence cards can help property owners find verified tenant profiles, payment histories, and rent credit scores to make informed decisions. The platform’s comprehensive verification system includes KYC information, hometown verification, court record checks and others that offer security and convenience, according to her.

“We provide an early rent facility for landlords after assessing the rent agreement and yearly rental amount, which needs to be repaid after receiving the rent from the tenant. The platform’s Rent safety package ensures steady income through interest earnings on delayed payments and default protection,” said Shetty.

“We are set to expand in Hyderabad, Chennai, Kolkata, Delhi-NCR, and Ahmedabad in the coming days,” added Shetty. This expansion aligns with the potential of the rental market. According to EY Parthenon, an arm of global consultancy firm Ernst and Young, about 4.05 crore people lived in rented accommodation across India’s top seven cities in 2021, representing 35 per cent of their total population. India’s residential rental market is valued at Rs 1.85 lakh crore and is expected to grow at 8 to 10 per cent annually.

Pune’s rental market shows promise for such innovation, with the city witnessing a 3.12 per cent average rental yield, according to a 2024 study by Aurum PropTech, a real estate management company. Through its comprehensive approach to rental management and financial inclusion, RentenPe is paving the way for countless Indians to achieve their dream of homeownership and aligning their vision with India’s ‘Housing For All’ scheme under Pradhan Mantri Awas Yojana Urban 2.0 till 2029.