Home loans for the tech-savvy

Indiabulls Housing Finance's online service allows customers to get loans without going to lender's office

Many of those who take home loans today are busy professionals. For them, repeated visits to the lender’s office to complete paperwork can be difficult. To reduce the time and hassle that customers have to undergo, Indiabulls Housing Finance (IBHFL) has launched an e-home loan service, a first, that allows customers to avail of a home loan online.

After you have resolved all queries about the loan amount, interest rate, etc, you need to create an account on the company’s website. The company does online PAN verification and gives in-principle approval.

You don’t have to visit the lender’s office even to submit documents. The company allows e-signing for self-attesting these documents. It has tied up with the Centre for Development through Advanced Computing (CDAC) and the Unique Identification Authority of India (UIDAI) to offer e-signing.

HASSLE-FREE

• Online PAN verification
   
• Amount eligible for stated and in-principle approval given
   
• Self-attest all documents using e-sign facility and upload them
   
• Once loan is sanctioned, pay processing fee using RTGS
   
• Submit e-demand for disbursal of loan in tranches, depending on progress of construction

“This facility allows us to generate a unique identification password. The customer has to put this number, which serves as his e-signature, on every document,” says Gagan Banga, vice-chairman and managing director, IBHFL. The scanned documents have to be uploaded.

To ensure that the application process is smooth, customers should have their KYC documents (photo ID and address proof), bank statement for the past six months, income documents (either two years’ income tax return or Form 16), property documents, and Aadhaar number.

Once IBHFL verifies your papers, it will issue a sanction letter online. The customer then has to pay a processing fee using RTGS transfer facility from her bank account.

Finally, the customer confirms her property and loan details and requests disbursement online. She can choose payment option, mention whom the payments have to be made to, and also state the disbursement date and time.

IBHFL also offers a facility called e-demand. Most people buy under-construction properties, where the loan is disbursed in tranches. “The customer submits an e-demand for the amount due to the builder. Our technical team verifies the project’s progress. If it is progressing according to schedule, the next tranche of payment is released,” says Banga.

The company claims it can disburse a loan using this facility within 48-72 hours. It charges an interest rate of 9.4 per cent for loans of up to Rs 3 crore, and 10 per cent for loans of above this amount. For those who find the online facility difficult, there is an electronic tutorial, and staff to assist you online.

Experts say the e-home loan facility is convenient for those who are Internet savvy. “It will set a new standard in how customers will expect to avail of a home loan in the future,” says Ranjit Punja, chief executive officer and co-founder, Creditmantri, a company that uses data to help customers make better credit decisions.

When choosing a loan provider, Punja advises customers to compare interest rates and loan-to-value ratio, whether the lender will offer any help in selecting the property, and so on. Anil Rego, CEO, Right Horizons, says while this is a welcome initiative, only tech-savvy borrowers will be able to avail of it. “Internet speed could also be an impediment, as property documents tend to run into many pages, and uploading them all could take time,” he says.