Updated: Sat, 13 Feb 2021 01:42 PM IST
New Delhi | Jagran Brand Desk: India’s credit bureau coverage increased moderately from 19.8% in 2013 to 21.4% in 2016. However, the percentage skyrocketed to 63.1% in 2019.
During this period (2016–2019), the Indian financial sector went through a watershed change. More individuals acquired smartphones than ever before, and financial institutions readily adapted to this change by shifting their services online.
Today, individuals can apply for products such as home loans with just a few taps. Digitisation has expedited the entire process by leaps and bounds. One can now keep track of his/her application status in real time, making borrowing increasingly more convenient. This has made skipping long queues in branches possible for individuals when taking out a housing loan.
Benefits of an online home loan
Besides a simpler application process, digitisation of traditional services such as a home loan has ushered in a number of advantages –
- Quicker processing
Processing a home loan, from assessing an application to various front-end and back-end operations, is traditionally time-consuming. However, carrying out these processes digitally brings significant efficiency. If everything is in order, individuals can receive an approval within just 4 days.
Digitisation also keeps borrowers in the loop during the approval process. One does not remain in the dark regarding his/her application status. Financial institutions update applicants about the progressions through texts and emails or their dedicated app or web portal.
- Tailor-made offers
Digitisation has enabled financial institutions to provide personalised, pre-approved offers to individuals. These help prospective applicants to manage their finances with more ease as such offers are exclusive to their requirements. Such offers speed up the approval process and are available across a slew of financing options, such as a home loan and a loan against property. Individuals can provide their name and phone number to check pre-approved offers.
- Available from anywhere
Easy availability is one of the primary advantages of an online home loan. Even individuals in remote locations can apply for a home loan through their smartphones. It’s particularly beneficial for rural residents since they have access to only a handful of financial institutions or none at all in their or nearby localities.
- Simplified lender comparison
Speaking of availability, digitisation has made it infinitely simpler for prospective applicants to compare a plethora of financial institutions for a home loan. With several options at their disposal, individuals can check home loan interest rates levied by different lenders and also other terms associated with their loans.
- Minimal documentation
Traditionally, taking out a home loan involves extensive documentation. However, with digitisation underway, financial institutions are shifting to a paperless approach. Applicants can upload the scanned copies of their KYC documents, such as Aadhaar cards. These processes are mostly automated, which saves a prospective borrower significant time and hassle.
- Online facilities
Besides bot-advisors and online chat options, financial institutions also feature facilities such as home loan EMI calculator, eligibility calculator and loan balance transfer calculator. These assist individuals in making a well-informed decision before going forward with the application.
For instance, individuals can use a home loan calculator to determine the install sum they are comfortable with, the tenor that will be suitable to their financial objectives and total interest payable. These are free-to-use and fast. Hence, prospective applicants can try out different tenures and loan amounts to determine a manageable EMI and interest payable that aligns with their requirements.
- Online management
The benefits of digitisation extend beyond the application process. Borrowers can manage their home loan through the lender’s dedicated app or web portal. One can pay EMIs, view essential details such as repayable amount, check payment status and resolve any issues online. Borrowers can also part-prepay their loans to trim home loan tenure whenever it is convenient to them through such online portals.
Nevertheless, despite the easy availability of a home loan today, it’s imperative to consider a few factors before applying. These are –
- Credit score – A 750+ score can help individuals avail a loan at reasonable interest rates and, henceforth, lower EMIs.
- Tenor – Home loan repayment tenors range about 20 or more years. Opting for a lengthy tenure can lower instalments. However, a briefer tenor helps save on interest outgo.
- Down payment – It’s wise to pay a higher down payment than is mandatory. It improves the chances of approval and also alleviates the repayment burden.
Besides interest rates, these three factors are vital considerations before one takes out a home loan. Individuals should also have a repayment plan in place to minimise hassles later during the tenor. A good way to achieve this is to opt for a home loan from Bajaj Housing Finance Limited.
Through it you get access to a sanction of up to Rs.3.5 crore to purchase or construct the home of your dreams. This sanction is available at an attractive housing loan interest rate and for a flexible tenor that ranges up to 30 years. You can thus tailor repayment to match your income and keep your outgo manageable. This offering is also easy to avail as you only need to meet the simple loan criteria and submit minimal documentation to get the loan processing underway. For quick access to these features and to get the home tax benefits that come with it, apply online today!
(Disclaimer: The article is written by the Brand Desk)