Posted by The total worth of digital lending is expected to reach about $350 billion by FY2023 in India, according to a Statista report. With most financial activities transitioning to the online sphere, a similar change has been observed in the credit availing process. Owing to this,
- More than 1200 digital lending start-ups operate in the country presently.
- Along with digital loans, the housing loan segment also grew by 0.8% between April and August.
The convenience of the online home loan process, combined with attractive interest rates, is responsible for harnessing such growth in this particular segment.
How do borrowers benefit from online home loans?
The home loan process becomes significantly more convenient online. Borrowers can expect the following advantages from this procedure –
1. Improved processing time
The offline home loan application process involves visiting a chosen lender’s branch, filling up an application form and submitting it alongside all necessary documents. However, most financial institutions take a while to process such applications after verifying all information.
Nonetheless, when you apply for a home loan online, the processing time is cut down significantly. Assessing how to apply for a home loan online can help borrowers reduce the hassle of borrowing as well. Some lenders even process home loans within 24 hours of application, provided the applicant has submitted all necessary documents and fulfilled all eligibility parameters.
2. Comparison made easier
Besides faster processing, online applications are also beneficial for borrowers when it comes to comparison. Individuals can easily acquire all necessary information regarding the terms and conditions of home loans from various lenders in one place. It is suggested to opt loan with a personal loan EMI calculator. Thereby choosing the best option often becomes easier.
Even a difference of 0.5% in home loan interest rate can entail significant savings in interest outgo. For example, an individual avails a home loan of Rs.40 lakh for 20 years at an 8.6% interest rate. In such a case, he would need to bear around Rs.43.91 lakh as total interest.
If the borrower availed the same amount for the same period at 9.1%, his interest outgo would increase to around Rs.46.99 lakh.
Borrowers can also quickly access useful tools, such as a home loan EMI calculator when applying online. This computation tool is another reason to opt for a digital home loan process.
3. Hassle-free and convenient documentation
Digitisation has also reduced the burden of documentation considerably. While each borrower should be aware of the list of documents needed for a home loan, most housing finance companies ensure a streamlined documentation process when availing such credits online.
In most cases, a borrower would need to submit his/her KYC documents, property papers and income documents while taking advantage of the digital home loan process. Nonetheless, the exact requirements can differ from one financial institution to another. An individual must inquire about the same before initiating an application procedure.
4. Availability of specialised offers
To encourage digital home loan applications, certain renowned financial institutions extend pre-approved offers to existing customers. Doing so expedites and simplifies credit processing. Such offers are available on a host of financial products, including loan against property, home loans and more. Borrowers can check their pre-approved offer by submitting basic details, including their full name and phone number.
5. Simplified application for top up loans
Besides availing the standard home loan, one can also complete the home loan top up process online. When in need of additional funds, beyond the housing loan quantum, such top-up loans can be an ideal source of finance. Additional funds of up to Rs.50 lakh are available through such loans to eligible applicants.
6. Check home loan eligibility in minutes
The availability of digital loans has also allowed potential borrowers to verify whether they qualify as per the particular lender’s eligibility norms. Doing so minimises the risk of loan rejection, which can affect one’s credit score adversely. Additionally, using tools such as the home loan eligibility calculator ease this process even further.
Borrowers can enter a few details, including their city of residence, income, age and more, to know exactly how much home loan quantum they can seek.
Steps to apply for a home loan online
Follow the steps mentioned below to avail a housing loan from a lender’s website –
Step 1: Visit the lender’s official portal and navigate to its home loan section.
Step 2: Click on ‘apply now’.
Step 3: Fill up an online application form with all relevant details.
Step 4: Choose your loan principal and tenor as per your needs and repayment capacity.
Step 5: Submit this application after double-checking all entered details.
Step 6: Wait for confirmation of loan sanction.Evidently, the online home loan process is simpler, enabling individuals to avail credit in just a few steps. The benefits listed above have led to the sizable rise in digital housing loan applications over the years. With the home loan market set to maintain a CAGR of 22% between 2021 and 2026, such digital loans are set to become more popular.