Bengaluru Startup Navanc is establishing a credit score for property

The lending of loans is a risky venture. Banks must look at the credit past, CIBIL or other credit scores, as well as earning potential and value of property, among numerous other things prior to deciding whether they can approve loans to protect themselves against the risk of default.

To assist lenders with the burden of valuing property for mortgage-based lending , they have Navanc Datasciences. The company was established in 2021 by Nagachethan 2021, Bengaluru-based firm is building creditworthiness scores to the properties as well as assets.

What CIBIL refers to is individual creditworthiness? Navanc will try to replicate it for real property.

At present the company’s clients include financial technology and a handful of non-banking lenders like Vistaar Financial Services and APAC Financial Services. The company has completed more than 500 property assessments to date most of which are located in Tamil Nadu and Karnataka.

Read more Razorpay acquires Digital Payment Startup Ezetap, It’s the third acquisition of 2022.

What caused it to begin?

After being a banker for 14 of those years, Nagachethan saw assets being underwritten as they provided credit to small, mid and small businesses (MSMEs) in semi-urban and rural regions as well as housing in urban regions. It involved requesting many documents, and evaluating the documents.

According to his own experiences, “the trickiest part is to look at the documents of the legal aspect of the property” Nagachethan says to Business Headers.

Usually, the borrowers or customers have a difficult time obtaining correct documents that include the analysis and appraisal of their property in order to submit the bank or financial institution. Sometimes, they don’t have the proper documentation. Even when they do, the documents are not always updated and there may be transfer issues if it’s passed down through the generations.

Due to this “there is lots of confusion about when it comes to whether to underwrite or mortgage an individual property as well,” he says.

Banks depend on their own lawyers and valuers for the assessment of properties.

But, he adds, “there is no standard method of evaluating properties, and both reports-the valuer and lawyer reports that we consider to be reliable in the present are subjective. There’s lots of gray area regarding the evaluation.”

In Nagachethan’s work experience in Fintech Navi Finserv, Vistaar Financial Services his team was sometimes required to refuse to approve a loan because due to a lack of clarity about the property.

He was aware that it was a difficult issue to choose a the loan commitment of customers. “I thought there was an need to uniformize the way property assessments are conducted (that was carried out) across the nation,” he says.

This led him to begin Navanc at the beginning of June in 2021, with the as a goal to make the mortgage loan experience better.


The challenge prior to Nagachethan was that the land is a state-owned subject and that every state will have its own rules and rules. Nagachethan wanted to create an common framework for the an assessment of land across the nation.

The answer he was directed by the solution was an quantitative analysis of the property. A complete score to assess what he called Navanc.

The startup decided to incorporate the information from valuation and legal reports that were done using the same criteria banks need. But, it also plans to include more details that would consider the location of the property and how marketable it was and what region it was located in along with other factors.

Banks contract lawyers and valuers to evaluate a property or property. They go to the site, evaluate the property, and then write qualitative reports. The reports are distributed by email or in person.

“Again the process of analyzing the report, and then processing the information in the report will be the responsibility of the credit manager,” says Nagachethan.

The decision to approve usually comes to the extent of the risk a creditor is willing to accept in every case?

“This is extremely qualitative in its nature,” he adds.


The company offers two products: Navanc, a property credit score; and VALLE an organized platform for lawyers as well as valuers and service suppliers.

In order to be used in assessment or underwriting of credit Navanc, the creditworthiness score, is calculated by a variety of 60 parameters, and then clubbed under five indicators:

1. Geospatial index takes into account the geographical location of the property, as well as its sensitivity to hazards, and uses information from geospatial satellites to confirm what the valuer’s statement is.

2. The marketability index considers factors like ease to repossess, value of resales, and property variations and other aspects.

3. Mortgageability Index takes into account legal issues and also normalizes the state-specific documents.

4. Digital Records Index: It records the digital footprint that the asset has.

5. Livability Index: It captures things like amenities and value add-ons.

Clients of Navanc pay for a subscription in relation to how many users they use it for and the amount of reports they use it for.

The company gathers this data from government or open databases and has joined together with a handful of companies like and in addition to others to verify the data and documents.

Navanc adds more than 150 valuers and lawyers from cities in Tier II and III on its platform. They have also made an additional offering called VALLE which is a business-to-business solution. Clients can get their property appraised through the platform, and Navanc receives an additional 10% on the amount lawyers and valuers make.

Markets and financing

The real estate market in India is predicted to reach $1 trillion in size by 2030, a rise from the $200 billion mark in 2021. It will contribute 13% of India’s GDP by 2025, according to IBEF.

Navanc was founded by a small investment amounting to Rs . 2 lakh. It also received in principle it was granted approval by

On June 20, 2022 the company has raised $300 in a the seed round of capital from investors that included Kunal Shah of CRED, QED Innovation Labs, Chattanathan D of, Samit Shetty of Chaitanya Microfinance, and Subramanya SV of Fisdom and many others. The company currently has a team of 8 members.

With the money, the company announced plans to increase the quality of its products and gain more customers.

Navanc is competing against businesses such as Maatrum which operates similarly.

Read more Aaron Voros Wiki, Biography, Age, Spouse, Height, Weight, Net Worth, Fast Facts



Leave a Reply

Your email address will not be published.

Back to top