Rent and Earn; Discover How This Pune Fintech Firm Is Transforming India’s Rental Scene

In recent years, Pune has emerged as a vibrant hub for innovation, particularly in the fintech sector. One standout player is a groundbreaking platform that is not only simplifying the rental process but also enabling renters to earn from their properties. This shift is particularly significant for individuals like Sarika Shetty, who faced challenges in securing a home loan despite having a strong CIBIL score. In her case, it wasn’t her creditworthiness that was questioned; rather, it was the banking system’s failure to acknowledge her significant rental payments. As this fintech solution gains traction, it promises to address such issues and transform the traditional rental landscape in India.

“The bank told me I needed to pay off one of my car loans before they would approve the home loan, claiming I was overexposed,” Shetty, the founder of RentenPe, recalled. Her sensible point that future savings from rent would help cover the home loan EMI revealed a major flaw in the banking system, as rental payments are overlooked during loan assessments. This experience led to the creation of RentenPe, a fintech platform that is now making an impact in Pune’s rental market.

“While CIBIL, a credit information company, considers credit card use, car loans, and personal loans for its scoring, it ignores rental payments, which represent about 30 percent of an individual’s average income in tier-1 cities,” Shetty explained, emphasizing the essential inequality that motivated the establishment of RentenPe.

Launched in 2022 in Mumbai after discussions with Ernst and Young and various stakeholders, including the Reserve Bank of India (RBI), banks, property owners, and tenants, RentenPe became a leader in recognizing rental payments by introducing India’s first rent credit score and residence card.

“While major credit bureaus provide credit reports upon a lender’s request, no one tracks rental payments. Some Non-Banking Financial Companies (NBFCs) and banks have expressed that with over six months of verified rent payment data from RentenPe, they could implement a ‘rent pay pull’ similar to traditional credit pulls when approving home loans,” Shetty noted, highlighting the platform’s potential for improving access to home loans.

India’s rental market has significant potential for such innovations. According to the 2011 census, there are approximately 2.73 crore rented households in India, with Maharashtra accounting for over 29 lakh of these, which represents a 13.5 percent share of the national total.

Smart Renting: 

Smart renting is revolutionized by RentenPe through its digital Residence Card (R-Card), which changes how rental transactions are documented. Once a tenant’s credentials are verified, they receive a unique 12-digit number that securely stores their payment information. The platform is designed for individuals paying monthly rents ranging from Rs 10,000 to Rs 2 lakh. Starting with a base score of 650, tenants have the opportunity to reach up to 790 by making consistent payments and actively engaging with the platform. This score can significantly aid individuals in qualifying for home loans through RentenPe’s partnerships with NBFCs and fintech companies.

Tenants also enjoy flexible payment options with low processing fees through UPI, credit, and debit cards. For those with a monthly rent over Rs 20,000, RentenPe offers an enticing incentive of up to one month’s free rent after making ten consecutive timely payments. Additionally, the ‘Gullak’ scheme allows tenants paying rent of Rs 10,000 and above to participate in fun weekly activities like Spin the Wheel, Scratch Card, and Quiz, where they can earn redeemable points for future rent savings.

Recognizing that financial emergencies can arise, RentenPe provides rental loans up to Rs 10 lakh. For individuals facing salary delays, the platform offers security deposit loans or rent loans with easy repayment options, ensuring support during tough times.

Empowering Landlord:

RentenPe is empowering landlords by providing them with tools to find verified tenant profiles, payment histories, and rent credit scores, which enable them to make informed decisions. The platform’s comprehensive verification system includes KYC (Know Your Customer) information, hometown verification, court record checks, and other measures that enhance security and convenience for property owners.

One of the standout features is the early rent facility for landlords. After assessing the rent agreement and the yearly rental amount, landlords can receive early rent, which they need to repay once they receive the rent from the tenant. Additionally, RentenPe offers a Rent Safety Package that ensures steady income through interest earnings on delayed payments and provides protection against defaults.

RentenPe is also set to expand into major cities like Hyderabad, Chennai, Kolkata, Delhi-NCR, and Ahmedabad in the near future, tapping into the growing potential of the rental market. According to EY Parthenon, around 4.05 crore people lived in rented accommodation in India’s top seven cities in 2021, which accounted for 35 percent of their total population. The residential rental market in India is valued at Rs 1.85 lakh crore and is projected to grow at an annual rate of 8 to 10 percent.

Pune’s rental market is promising for innovations like RentenPe, as the city has reported an average rental yield of 3.12 percent, based on a 2024 study by Aurum PropTech, a real estate management firm. With its thorough approach to rental management and financial inclusion, RentenPe is helping many Indians realize their dream of owning a home, while also supporting the goals of India’s ‘Housing For All’ initiative under the Pradhan Mantri Awas Yojana Urban 2.0, which is set to continue until 2029.