Online home loans are changing the banking landscape
Online home loan applications are now tried and tested procedures for most banks and financial institutions. If you were wondering how to choose a lender, you can do that online after comparing interest rates, offers and so on.
Digitization is being heralded as a major enabler when it comes to home loan sanctioning and disbursement. In fact, digitization has brought several advantages into our daily lives and the same has entered the banking and financial services landscape as well. These segments have garnered the advantages offered by digitization.
The mainstream lending segment has recognized several benefits offered by digitization, especially with regard to the home loan procedure. Home loan procedures were earlier dogged by tedious and lengthy systems and lack of proper flexibility or transparency. This also led to poor customer experiences overall.
Why digitization matters
People now have longer and more stressful working schedules. There is an ever shrinking window of opportunity available for closing in on one’s dream home. This earlier meant that skipping a visit to your housing finance company or bank would have major consequences. However, in today’s times, online home loan applications can be done swiftly and one can even get approvals within the same day or within a shorter period of time than previously thought possible!
For a regular home or land purchase loan, applicants were earlier required to visit the offices of their lenders multiple times. This started with the initial home loan procedure and continued till the loan was finally processed and disbursed. The entire approval procedure took anything between 20-30 days on an average.
Everything in the entire process right from the loan application to the KYC (know your customer), document submission and loan disbursal to the builder/home seller has now become available online. Companies can now do without tedious paperwork since systems can automatically store all documents. They also enjoy central access to various departments. This reduces the entire time required for sanctioning and disbursing home loans. This also adds greatly to overall customer convenience. Customers also get more access to information at every stage of the process. This leads to greater transparency as well.
Other latent benefits of digitization
Customers are now aware of the entire procedure while getting their home loans sanctioned since it has come online. The banking and financial services sector is now looking to grow in tandem with customers. Companies are now coming out with mobile apps that offer their services to customers with flexible loan management processes and regular updates alike. The National Securities Depository (NSDL) has offered huge assistance with regard to verification of PAN (permanent account number) in real time along with e-KYC which has generated faster authentications.
The Unique Identification Authority of India (UIDAI) has been a major support and so has the Centre for Development through Advanced Computing (C-DAC). These organizations have made e-signing possibility along with authentication through the OTP (one-time password). These systems have cut down overall time and paperwork for most lenders.
Housing finance companies are benefiting from lower costs of loans due to slimmer organizational frameworks on account of digitization. Also, data collection is giving them better ideas of customer behavior which is also helping in cross-selling their services. The e-signature feature is a component of the Sarfaesi Act (Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act). This reduces the load on customers and also enables better loan recovery by potentially cutting down NPAs (non performing assets).
Bajaj Finserv is one of India’s most trusted NBFCs and offers multiple online features related to your home loan process. For instance, you can check your home loan eligibility or your home loan EMIs using the online calculator on the website. That’s not all! You can fill out a form and start your home loan application journey by simply clicking a button!