Pramod Kathuria, Founder and CEO, Easiloan

Pramod Kathuria is the Founder and CEO of Easiloan, India’s first digital home loan marketplace. A seasoned professional, Pramod is on a quest to bridge the existing gap in the home loan market by building a technology-based customer-centric and innovative solution. In his current position, Pramod is responsible for charting the company‚Äôs business roadmap and overseeing the expansion and fundraising. With an MBA in Marketing from Pune University, Pramod has over two decades of experience across the Home Finance, Banking, and Real Estate industry.

 

The traditional home loan application process is time-consuming and requires many visits to the bank. However, thanks to the confluence of technology and finance, digital home loans have gained traction, making it easier than ever to secure loans. Fintech players enable online application, disbursal, and contactless due diligence which allows customers to sit back and apply from the comfort of their own home or office, ensuring a smooth application process. So, let’s take a closer look at what we need to keep in mind with home loans going digital.

Reasons to apply for a digital home loan

The days of tedious manual verifications are long gone. Paperless, hassle-free, and quicker turn-around times are the most significant advantages of applying for a home loan online. Apart from that, it enables you to get the best offers at one place that are personalized to your credit score. The increasing shift to digital has added to the list of benefits, including lower loan processing costs owing to lesser physical processes, secure OTP-based application, higher loan eligibility and real-time updates related to the application.

The digital process eliminates the need for physical paperwork; the consumer does not have to submit hard copies of personal information, such as bank account statements, income data, address, or ID proofs. It is all done through e-KYC, which speeds up the verification process and reduces the risk of fraud (few banks still ask for physical variant as well but that is changing quickly too).

The digital process makes it easier to switch to another lender mid-way in case of any rejections with the first one. Above all, as most players deploy a robust credit engine, this ensures coverage of all loan profiles and lenders in the market. Because of the benefits listed above, it is relatively easier to go for a pre-approved loan sanction that helps freeze your home budget objectively and also expedite once you choose your dream home.

Documents to keep ready before applying for a digital home loan

When it comes to applying for a digital home loan, there are a few documents that you need to keep handy. The first step is to have your KYC documents on hand, either in soft copy or via online access and the income-related documents, including a bank statement, ITR, salary slips, or income proof, ready. In case of businesses, an additional set of documents around ownership and income are demanded.

Keep track of the property’s location, value, and required loan amount, among other things. Remember that the objectivity on parameters for your preferred home loan product like rates, processing fee, and bank is different for every borrower, so you choose faster once you get a set of offers.

Things to be mindful of before opting for a digital home loan

Make sure you consider all of these things before taking out a digital loan to make the process go more smoothly. As far as possible, complete the application yourself; this eliminates the chances of error and makes sure that only you are in control of your personal information related to income KYC during submission. Some of the details mentioned above require an OTP-based login, which are also best done on your own. Always choose a platform with a comprehensive set of banks, so you get to choose the best option.

If you are buying a new home, it is always good to know which banks have an APF approved for the builder’s project. This helps expedite matters at the disbursement stage, also this is typically between

developer-lender, hence outside the ambit of a digital home loan player. It is also important to check for ISO: 9001 and ISO:27001 certifications of the digital home loan player. These ensure that they follow world-class data protection practices and provide a secure transaction for you. It’s always a good idea to double-check with the platform to see if they can provide expert assistance or human intervention when needed. This is helpful if things do not go as planned. Apart from that, be prompt in sharing documents as requested by the bank.

Conclusion

Undoubtedly, a digital home loan has proven to be one of the most valuable instruments for making the process of realizing one’s dream of owning a home easier. Above all, with technological advancements, there are a variety of financial institutions ready to give immediate digital loans; however, it is the responsibility of the consumer to take the required measures and select the appropriate product and lender.

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