Home Loan industry was amongst the one’s which was expected to take a long time to go digital even during this digital era. All such anticipations came down crashing amidst the COVID-19 Pandemic. During the nationwide lockdown, the lenders had to improvise on the method of processing the application. The pandemic resulted in making E Approvals for home loans a possibility.
HDFC Bank was amongst the first one’s to bring in this change. The process moves the loan application swiftly with reduced manual intervention in the process, providing access for customers to check the stage of the application.
The Entire Journey can be Broken Down into Six Stages
Stage 1: Registration of Customer Details
The Sales representative involved will register the details including customer name (as per PAN), mobile number and Email ID in the system. Once registered, the customer receives an online link on the email ID shared.
Stage 2: Customer Sign-up
The customer is required to create a user name and password on the portal. These credentials can be safely kept by the customer to check the status of the application.
Stage 3: Loan Application Form & Co-Applicant Consent
The borrower of the loan is expected to fill in general information including Employment Details, financial details, Existing loan details, Bank account details & property details. Property details are not only limited to the address, it comprises of the built-up area of the property and stage of construction. At this stage, the customer would get an option to select whether its a fresh application or Balance transfer.
The form also gives customers an option to locate the property on the map to make it easy for verification purposes. Along with main borrower details, co-applicants consent is also taken via OTP sent on Co-applicant’s mobile number
Stage 4: Upload Documents
Borrowers are required to upload their documents including Address Proof, PAN Card, Photograph and financial documents. In case any file is encrypted the password can be uploaded along with the documents in the password segment. Latest Payslip and KYC are mandatory documents. Rest all documents can be submitted while the file is under scrutiny. It is always suggested customer uploads all the documents at this stage to have quick loan approval.
Stage 5: Fees Payment
Applicable processing fee and mortgage charges are payable here. In case the customer is applying for Balance transfer and top up, the fee for both files will be paid here. System-generated payment advice is sent on the registered email ID of the customer.
Stage 6: Review of Loan Application
Once the customer pays the fee, the file moves into the credit queue. Customer can log in using the credentials generated before to check the status of the application Contact details of the allocated credit appraiser is available in the same login. In case any query/ pending document is required from the customer end, borrowers can upload the documents using the same credentials.
Once the scrutiny of the file is done, verifications are triggered for property and address proof. Currently, since the property documents are digitised at the authority level, physical verification is still required.
With the introduction of E-Applications, it has become easy for borrowers especially for one’s looking to apply for Balance transfer and Top-up as this saves them from the hassle of filling two forms and providing two sets of documents for different files.
The online applications have helped customers avail of the loan in a faster way.