In an exclusive interaction with Finance Outlook India, Satinjeet Singh, Vice President at Yes Bank, delves into the multifaceted challenges surrounding mortgage loan valuation in India. Drawing on over 12 years of experience in real estate finance and asset valuation, he outlines the systemic inefficiencies and ethical dilemmas that plague current valuation practices from reliance on hearsay and lack of standardized procedures to the underutilization of technology. Satinjeet Singh also shares his expert perspective on the future of mortgage lending, emphasizing the role of AI, AVMs, and blockchain in creating a more transparent, customer-centric ecosystem.

What are the major challenges in the mortgage loan valuation process in India?

The mortgage loan valuation process in India faces several critical challenges. First is the irregular market influence, where credit officers often rely on hearsay, broker inputs, or borrower expectations, resulting in “convenience valuations” that may not reflect true market value. Second, professional valuers are frequently undermined—those who provide accurate, lower valuations may be penalized or overlooked in favor of inflated figures aligning with informal expectations, thereby compromising ethical practices.

Another major issue is the limited valuation knowledge among credit appraisers. Many bank staff conducting site visits or reviewing valuations lack formal training, leading to inconsistencies and flawed decisions. Furthermore, valuers face pressure to align valuations with expected loan amounts or hearsay to secure future assignments, which compromises their independence and increases credit risk.

There is also an absence of standardized valuation practices, particularly in tier-2 and tier-3 cities, resulting in inconsistent property assessments. Additionally, despite advancements, there’s limited use of data analytics and technology, as many banks still depend on manual processes and outdated data, increasing human error.

Legal and title verification issues are another hurdle, with disputes and unclear ownership records complicating valuations and increasing the risk of NPAs. Lastly, India lacks a centralized property transaction database, making it difficult to verify comparable sales and assess fair market value confidently.

How reliable are automated property valuation models (AVMs), and what digital platforms are available for Valuers and are in my recommendation?

Automated Property Valuation Models (AVMs) have become increasingly reliable and relevant in India’s evolving real estate and mortgage landscape. Their biggest strengths lie in speed, cost-efficiency, and consistency. AVMs can generate valuations within minutes—far quicker than traditional manual assessments—and are especially useful for bulk or low-risk property portfolios. They also eliminate human bias, offering standardized outputs that are scalable across large datasets.

However, AVMs are not without limitations. They often lack contextual insight, such as the physical condition of a property, legal encumbrances, or unique architectural features. Their accuracy is heavily dependent on the quality of input data, and they may not be suitable for complex or high-value assets like bespoke homes or commercial properties. Regulatory frameworks also require that AVMs be used alongside professional judgment to ensure compliance and mitigate risk.

The most effective approach today is a hybrid model—combining AVMs with expert review. This ensures both efficiency and accuracy, especially in lending and investment decisions.

India has witnessed a significant rise in tech-enabled valuation tools across digital platforms, enhancing accuracy and efficiency in property assessments. Leading platforms include ValuStrat AVM, widely adopted by banks and NBFCs for residential property valuations, and PropEquity, which offers real-time analytics and transaction data favored by developers and financial institutions. CRE Matrix focuses on commercial real estate, providing lease analytics and rent benchmarking. Consumer-facing platforms like MagicBricks and Housing.com also contribute through APIs and data feeds useful for comparative market analysis. REConnect Energy specializes in GIS-based land valuation, particularly in the renewable and industrial sectors. Additionally, RICS India supports the adoption of tech-integrated valuation standards and platforms for certified professionals.

These platforms are helping valuers transition from traditional methods to more data-driven, transparent, and scalable valuation practices. 

My opinion on Balancing customer service and credit risk in mortgage loans 

Balancing customer service with credit risk in mortgage lending is both an art and a science. On one hand, banks must deliver a seamless, responsive experience to customers—especially in a competitive market where turnaround time and transparency are key differentiators. On the other hand, they must uphold rigorous credit risk standards to ensure portfolio health and long-term sustainability.

The key lies in building trust through responsible lending. This means using data-driven tools to assess borrower profiles accurately, while also ensuring that customers feel heard and supported throughout the process. Technology plays a vital role here—automated underwriting systems, digital document verification, and AI-powered valuation models can speed up approvals without compromising risk controls.

Equally important is empowering frontline staff with training and tools that help them explain credit decisions clearly and empathetically. When customers understand the rationale behind a loan offer or rejection, it enhances transparency and reduces friction.

Ultimately, the goal is to create a lending environment that is both customer-centric and risk-aware—where service excellence and prudent decision-making go hand in hand.

Also Read: Why Real Estate Beats Gold as the Smarter Investment in 2025

What innovations and trends do you see driving the mortgage industry in next 5 years?

The mortgage industry is set to be transformed by AI-driven underwriting, automated property valuations, and blockchain-based title verification. We'll see embedded mortgage solutions integrated into digital platforms, along with a rise in green financing and personalized lending experiences powered by data analytic

In essence, the mortgage industry is moving toward a future that is digital-first, data-driven, and customer-centric—where innovation enhances both operational efficiency and borrower experience.

About the Author

Satinjeet Singh is a seasoned finance and banking professional with over 12 years of rich experience in the industry. He is currently serving as Vice President at Yes Bank, where he takes care of Real Estate Valuation Group, contributing significantly to the bank’s asset evaluation and risk assessment strategies. Throughout his career, Satinjeet has held key roles across leading financial institutions including ICICI Bank, AU Small Finance Bank, and the Bharti Group, gaining diverse exposure in asset management, real estate financing, and strategic operations. With a strong academic foundation in Civil Engineering from the National Institute of Technology (NIT), Satinjeet brings a unique blend of technical and financial expertise to his work, enabling him to assess and manage complex real estate portfolios with precision and insight.