ICICI Bank & Other Lenders Start Sanctioning Home Loans Online Amid Lockdown

Last Updated : May 29, 2020, 11:03 a.m.

The COVID-19 pandemic has disrupted businesses of most organizations and it has not even spared banks and financial institutions. As a result, the loan disbursal is happening at a tepid pace than was the case before. Taking note of the same, a few lenders have started digitizing the home loan process and ensuring the eligible customers get a quick loan sanction. Lenders that have taken the initiative include ICICI Bank, HDFC Limited and PNB Housing Finance. Let’s check out how the process will carry out in this post.

ICICI Express Home Loan

ICICI Bank has branded the latest digital home loan offering as Express Home Loan. You need to start the process by visiting the official website of ICICI Bank first and then on to the Express Home Loan page. Once you reach there, follow the steps shown below.

1. Provide your name, date of birth, mobile number and several other personal details. Select ‘Home Loan’ from the list of products and choose from the type of employment – salaried or self-employed, and mention your gross and net income, share information regarding existing loan EMIs, if any
2. As soon as you fill these details, a loan quote will appear on the screen
3. If you find the loan offer good, apply for the same by filling the loan application form
4. At last, you need to upload documents that can authenticate your identity, address and income

The bank will check all these details carefully and give a provisional loan sanction letter once the authentication process is successful.

Documents Required

The bank would ask you to submit the following documents for provisional online sanction.

• Identity Proof – PAN Card (Mandatory)/Voter ID/Driving License/Passport
• Signature Proof – PAN Card/Driving License/Voter ID/Passport
• Residence Proof – Voter ID/Driving License/Passport/Aadhaar Card
• Income Documents
  • Salary slips for the last 3 months, latest Form 16 (Salaried)
  • Income Tax Return (ITR) and audited balance sheet and profit & loss account for the last 2-3 years (Self-employed)
  • Last 6 months bank Statement

What About HDFC Limited and PNB Housing Finance?

Even though these two lenders haven’t detailed on the process yet, they have begun sanctioning home loans online.

What About the Home Loan Interest Rates of These Lenders?

Of the three, ICICI is a bank whose home loan rate will come down further from 9.00% - 10.05% per annum following the latest repo rate cut of 40 basis points made by the RBI on May 22, 2020. HDFC Limited home loan rates are 8.50% - 9.40% currently. However, individuals having a credit score (CIBIL) of 800 and above can be granted loans at a lower rate of 7.50% per annum. PNB Housing Finance offers home loans at 8.50% - 11.95% per annum.

The Million Dollar Question Remains – When Will the Disbursal Happen?

As lockdown restrictions have eased considerably with the government allowing quite a bit of movement than was the case earlier, very soon these lenders will start sending technical and legal experts to check your property and prepare their respective report. Once the report comes out fine and the property registration happens successfully, the lender will disburse the cheque to the seller of the property. And, in turn, you will start paying the loan via Equated Monthly Installments (EMIs).