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RentenPe Launches India’s First Rent Credit Score and R-Card

Mumbai / August 30, 2024: In a groundbreaking move set to reshape India’s rental market, RentenPe is launching the country’s first Rent Credit Score and Residence Card (R-Card). This innovative platform aims to address a significant gap in the financial ecosystem by recognizing and rewarding tenants for their consistent rent payments, a crucial yet undervalued financial commitment.

“RentenPe which is developed over three years of extensive research aims to address inefficiencies in the residential rental market through a comprehensive suite of services. As the first company in India to introduce Rent Credit Rating Services, RentenPe will establish itself as the nation’s pioneering Rent Credit Scoring Bureau. RentenPe’s matrix and algorithm for rent credit scoring is based on Financial, Qualitative & Quantitative parameters aligned with the existing global credit rating bureaus for easy adoption by Financial Institutions,” a press release from RentenPe said.

Sharad Kachalia, the Owner of Navnit Group – BMW, JLR, Ferrari & aviation, operating across three states with over 40 dealerships and workshops is one of the co-founders along with Gopal Shukla, a start-up enthusiast and an IIT Bombay alumnus; currently CEO at IIT Bombay- Washington University in St. Louis Joint Venture and Shantanu Yadav, a serial entrepreneur.

With nearly 50% of India’s population under the age of 40, many young professionals relocate from smaller towns to major cities, contributing significantly to the nation’s GDP. These individuals often dedicate a substantial portion of their income—up to 30%—to rent, while aspiring to own a home, a symbol of status and security in Indian society.

Despite the regularity and significance of these payments, they remain unacknowledged in traditional financial metrics. Unlike credit card payments or loan EMIs, which contribute to building a positive credit score, rent payments have historically been overlooked, leaving renters without the financial recognition they deserve, the release added.

RentenPe aims to change this by introducing the Rent Credit Score—a metric specifically designed for the residential rental market. Developed using an advanced algorithm, this score considers a variety of financial, qualitative, and quantitative factors. It enables tenants to build a credit profile based on their rental history, paving the way for better rental agreements, rent loans, pre-approved home loans, and potential savings on rent.

Sarika Shetty, Founder of RentenPe, explains, “We believe that rent, a significant monthly financial commitment, should be recognized in the same way that EMIs and credit card payments are. Our Rent Credit Score and R-Card are designed to empower tenants, giving them the financial recognition they deserve and helping them achieve their long-term goals, including homeownership.”

RentenPe’s approach is backed by extensive research conducted in partnership with Ernst & Young, which revealed the potential of integrating rent payment data into financial assessments. The research highlighted that India’s residential rental market, valued at INR 1.85 lakh crores across the top seven cities, is expected to grow at a compound annual growth rate (CAGR) of 8-10% over the next five years.

Complementing the Rent Credit Score is the R-Card, India’s first digital rental identity. Unlike traditional financial tools, the R-Card acts as a digital ID, offering tenants access to better rental deals, quicker approval processes, and potential rent discounts. For landlords, it provides instant access to verified tenant profiles, early rent facilities, and more, streamlining the rental process and fostering trust.

As RentenPe prepares for its official launch, the platform is set to drive a fundamental shift in how rent is perceived and valued in India. By turning rent payments into a powerful financial tool, RentenPe is not just launching a new product—it is revolutionizing the rental landscape, creating a more secure and equitable future for tenants and landlords alike.