In order to provide the consumers with loan options from various sources, apnaloan.com has entered into tie-ups with leading banks and financial institutions to act as a non-exclusive distributor of their products and services. The list covers most of the multinational and nationalized Indian banks such as Citibank, American Express, ICICI or HDFC. In addition, it has entered into arrangements with manufacturers, dealers and associate sites to better the deals to the consumer.

The site is modeled around a consumer-to-business (C2B) model that is designed to generate revenues through its transactions. Unlike most eyeball-based sites working on banner-advertising revenue models, the main source of revenue for apnaloan.com will be through charges from the lending institutions on each transaction executed. The amount of commission being the same for every institution, the information given to the consumer will be without a vendor bias. Additional sources of revenue will be generated through participation fees, various alliances with complimentary sites and banner advertising. "We are not working on futuristic dreams but have tried to create a realistic revenue model that will be profitable. The company expects to break-even in the first year of operations (excluding sales promotion and brand expenses) and make a profit in the second year," says Vishwanathan.

The technology used by apnaloan.com—the three-tier back-end architecture built on Mphasis-BFL software revolves around these components:

• The delivery channels: The Web, mobile access devices, call center and e-mail.

• The applications integrator: Components like the customer information profile manager, business rules, decision engine, transaction manager, security sub-system and the workflow manager.

• The back-office systems: The loan origination and tracking system, the information database, compensation system, contract management system, e-mail response management system and an accounting subsystem.

Advantage lender, too

While the site provides a higher bargaining power to customers, it also promises a useful business option to the lender. The participating banks or financial institutions have access to a much larger database that can be tapped. "It is certainly a good way to enhance our business as we can reach out to many more customers," says Bhardwaj. "This creates an additional channel of business for us with greater scalability. And when we gain from it, we can also pass on the benefits to the consumer through more incentives and schemes," agrees Shalini Singh, senior executive, ICICI Bank.

In a scenario where a majority of dot-coms are still struggling to define their business models and most organizations have become skeptical of investing in new e-ventures, this e-marketplace seems to suggest a rescue route. "We are not providing any social service," says Vishwanathan, "Our site is based on a sound business model that will be useful both for the buyer and seller."

By bringing together a group of organizations together on a common platform in this way, apnaloan helps cut down on intermediaries and create a more cost-effective solution. While most multinational banks and lending institutions also have their individual sites, the concept of such an e-market is emerging as a useful common contact point for loans and credit cards.

SHWETA VERMA in New Delhi