Property Valuation

About

What is PV ?

Property Valuation module is designed to mitigate risks in Loan Against Property (LAP) applications by incorporating Early Warning Signals (EWS) into the valuation process. Using Geo-Referencing technology and Government-certified base land rates, this module also provides real transaction rates of properties sold in respective area as a real time reference rate for a near perfect fair market value reducing the chances of over valuation.
The module’s scientific, rule-based engine analyzes recent transaction data and surrounding infrastructure amenities to determine the fair market value of a property. Any significant deviation from expected values triggers an EWS, prompting further investigation. By ensuring accurate and transparent valuations, this module aligns with RBI’s framework for early fraud detection and risk mitigation, safeguarding lenders from overvaluation or undervaluation risks.

Challenges

• Over/Undervaluation Risks:Manual valuation processes often lead to inaccuracies, increasing lending risks.
• Delayed Reports:Physical site visits and manual report generation cause delays in loan processing.
• Lack of Standardization:Valuation methods vary across valuers, leading to inconsistent results.
• Limited Data Integration:Valuers often lack access to real-time transaction data and infrastructure details.

Solutions

How PV resolves these challenges:

• Scientific Valuation Engine:Combines Geo-Referencing, Government-certified base land rates, and recent transaction data for accurate valuations.
• Digitalized ReportsEnables valuers to generate reports immediately after site visits.
• Standardized ProcessEnsures consistency across all valuations.
• Real-Time Data Integration:Captures live data on surrounding infrastructure and market trends.

Benefits

• Reduces valuation TAT by 50%.
• Mitigates lending risks with near perfect fair market value assessments.
• Enhances transparency and trust in the valuation process.