In an era where financial innovation is reshaping multiple sectors, one Pune-based fintech startup has been making waves by revolutionizing the rental market in India. RentenPe, a platform that’s transforming the way rental transactions are viewed and valued, promises not just to streamline the rental process, but also to enable renters to leverage their rental payments to access loans and other financial opportunities. What sets RentenPe apart is its understanding of the nuances in India’s rental ecosystem, helping individuals—especially tenants—gain more financial credibility.
The Problem: India’s Overlooked Rental Market
In a country where the rental market is vast and ever-growing, it is surprising that rent payments, which are a significant part of most people’s expenses, have largely been ignored by traditional credit scoring systems. This is exactly the frustration Sarika Shetty, founder of RentenPe, experienced first-hand.
Sarika, like many others, found herself in a bind when she sought a home loan. Despite a strong CIBIL score, she was told by banks that she was “overexposed” because of her existing loans, including a car loan. The catch? Her substantial monthly rental payments—essentially another financial responsibility—weren’t being factored into her loan eligibility.
“I told them that my future savings from rent would help me meet the EMI for the new home loan, but the bank couldn’t accept that,” recalls Shetty. This glaring flaw in the banking system, where rent payments—typically representing around 30% of an individual’s income in major cities—are overlooked during loan evaluations, became the foundation for RentenPe.
After struggling to make sense of this systemic gap, Shetty co-founded RentenPe in 2022 in Mumbai, seeking to bridge this divide between traditional financial institutions and rental payment histories.
RentenPe’s Game-Changing Model
RentenPe is India’s first platform to provide a “rent credit score” for tenants, much like the traditional credit score that financial institutions use to assess the creditworthiness of individuals. With RentenPe, people can now build a financial track record based on their rental payments, allowing them to qualify for home loans and other credit facilities.
The idea was born out of a conversation with Ernst & Young and consultations with stakeholders such as the Reserve Bank of India (RBI), banks, property owners, and tenants. The goal was to address a clear gap in the Indian financial ecosystem: the lack of recognition for regular rental payments when determining a person’s creditworthiness.
“The major credit bureaus in India, such as CIBIL, focus on credit card usage, car loans, and personal loans, but ignore rent payments,” Shetty explains. “This created an inequality in the system. Rent payments account for a significant portion of income, especially in Tier-1 cities, yet they remain invisible to banks and NBFCs.”
RentenPe’s Rent Credit Score: A New Path to Homeownership
RentenPe’s core offering is its innovative Rent Credit Score, which allows tenants to use their rental payment history as a valid indicator of their financial reliability. Once a tenant’s credentials are verified, they are issued a unique 12-digit Residence Card (R-Card), which securely stores their rent payment information and tracks their payment history. Over time, consistent payments can boost their Rent Credit Score, opening doors to loans and other financial products.
For example, RentenPe’s platform starts tenants with a base score of 650, but this can rise to as high as 790 depending on how reliably and consistently they pay their rent. With a strong Rent Credit Score, tenants can now qualify for home loans and other financial services that would have been otherwise inaccessible.
Table 1: Rent Credit Score Breakdown
| Score Range | Eligibility | Loan Opportunities |
| 650-700 | Fair creditworthiness | Limited loan options |
| 701-750 | Good creditworthiness | Home loans with lower rates |
| 751-790 | Excellent creditworthiness | Access to premium loans |
This scoring system is designed to help tenants who have struggled to make a mark in the traditional financial system gain access to loans, particularly home loans.
Smart Renting: Features of RentenPe’s Platform
RentenPe isn’t just focused on rent payments; it’s creating a more interactive and rewarding rental experience for both tenants and landlords alike. One of the standout features is its gamified approach to payments, where tenants are rewarded for timely rent payments. Tenants who pay rents above Rs 20,000 receive up to one month’s free rent after completing ten consecutive on-time payments.
Additionally, RentenPe introduces the ‘Gullak’ scheme, where tenants paying rent above Rs 10,000 can participate in weekly activities like quizzes, Scratch Cards, and Spin the Wheel, all while earning redeemable points that can be used to reduce future rent payments.
To assist in financial emergencies, RentenPe provides rental loans up to Rs 10 lakh. The platform offers a simple process for individuals facing delays in salary payments, making it easier for them to get through tough times without worrying about missing rent payments.
Empowering Landlords: A Win-Win for Both Tenants and Property Owners
For landlords, RentenPe brings much-needed security and peace of mind. Through its platform, landlords can access verified tenant profiles, complete with payment histories and rent credit scores. This reduces the risk of defaults and helps property owners make informed decisions when choosing tenants.
Another major benefit for landlords is the “early rent” option, which allows property owners to receive a portion of their rent upfront, based on the assessed rental agreement and annual rent amount. The landlord repays the early rent once they receive the tenant’s payment. Additionally, RentenPe provides a “Rent Safety Package” that offers protection against defaults and late payments, ensuring a steady stream of income.
RentenPe’s Expanding Reach in India
RentenPe has big plans for expansion. After initially launching in Mumbai, the company is now set to broaden its horizons to cities such as Pune, Hyderabad, Chennai, Delhi-NCR, Kolkata, and Ahmedabad, all of which represent fast-growing rental markets.
India’s residential rental market is valued at approximately Rs 1.85 lakh crore, with an annual growth rate projected to range between 8-10%. According to EY Parthenon, approximately 4.05 crore people lived in rented accommodation in India’s top seven cities in 2021, accounting for 35% of the total population. Pune, in particular, has shown great promise with an average rental yield of 3.12% in 2024, making it an ideal market for RentenPe’s innovative approach.
Table 2: Projected Growth of India’s Rental Market
| City | Rental Market Size | Annual Growth Rate | Projected Market Value (2025) |
| Pune | Rs 30,000 crore | 10% | Rs 33,000 crore |
| Hyderabad | Rs 25,000 crore | 8% | Rs 27,000 crore |
| Delhi-NCR | Rs 50,000 crore | 9% | Rs 54,500 crore |
| Chennai | Rs 20,000 crore | 7% | Rs 21,400 crore |
With RentenPe’s continued success in Pune and other major cities, the platform is poised to play a major role in supporting India’s growing rental ecosystem. This is particularly important for the government’s ‘Housing For All’ initiative under the Pradhan Mantri Awas Yojana Urban 2.0, which is set to continue its efforts until 2029.
Conclusion
RentenPe’s innovative platform not only helps individuals access financial opportunities but also empowers landlords with valuable data to make more informed decisions. As the rental market in India continues to grow, RentenPe is leading the charge in making rental payments a recognized and valuable part of an individual’s financial profile.
By bridging the gap between renters and financial institutions, RentenPe is helping India’s middle class and working professionals take one step closer to realizing their dream of homeownership, all while driving financial inclusion and supporting India’s broader economic growth.