Sarika found absence of rent in credit score parameter unjust and set up company to correct it

According to the National Sample Survey of the Indian government, 25 to 30 people migrate from rural India to cities every minute! Generally, for better paying jobs and quality of life.

- Namita Shibad

PUNE: All this is well, but it puts pressure on cities that are already bursting at the seams with an ever-increasing population.

This translates to greater demands for housing, generally on rent since the ability to afford purchase of a home is not possible for most. Sarika Shetty was in the same "rent boat" while she was the CEO of a luxury auto dealership. And like all upwardly mobile folks, she had rented a home in a nice suburb in Mumbai. And since she could afford it, had bought two cars on bank loan. All was smooth sailing till she felt that it made much more sense to use the rent towards paying for the EMI of her own home.

"My husband and I felt that instead of paying a substantial amount of rent for our home, why not take a home loan and use the rent as EMI to purchase our own flat?" she said. Since the vastu of the rented house suited her, she got into an understanding with the landlord to purchase the flat.

But the trip to the bank for a home loan opened up a paradoxical box.