If we compare the process of availing a home loan, it has changed drastically. Before, the process was full of hassle and now it has become hassle free. Let’s discuss the process of availing a home loan through the digital route.
The constant need for digitisation has altered the borrowing process in India significantly. It also attracted considerable millennial borrowers to avail housing credit to mitigate their property related expenses.
- In 2020, 10% of all home loan customers were millennials.
- Millennials also account for almost 47% of workforce in India with steady income source.
Hence, keeping this potential home loan borrower base, financial institutions are also introducing e-home loan accompanying digital banking and other online services. Such reforms ensure ready availability of credit, encouraging internet-savvy customers to apply for this loan.
Although, it works almost the same as a conventional home loan, prospective borrowers should check out the features and benefits of this online housing loan at a glance.
Features and benefits of e-home loan
Following are some of the crucial features of e-home loan.
Easy application process
The home loan application process has become more borrower-friendly with the introduction of e-home loan. physical presence is not required to get their funds sanctioned.
All they have to do is enter some basic details like name, contact number, employment type and property pin code to apply for a home loan online without any hassle your loan loan application will be processed online.
Since borrowers do not have to visit lender’s office or stand in a queue, they can save time and apply for the fund from the comfort of their home. Such a benefit should help you decide whether you should apply for home loan offline or online. Some financial institutions also offer e-loan sanction letter that individuals get instantly. The validity of the letter is up to 180 days.
With a digital sanction letter and all the process being done online, the loan approval process becomes easier. Now, Within 4-7 working days, the loan amount is credited to a borrower’s loan account.
Some HFCs also provide pre-approved offers that simplify and expedite loan availing process. Such offers are available on several financial products like loan against property, house loans and others. You can check your pre-approved offer by entering your name and contact number.
This facility further hastens credit availing process, allowing borrowers to get the credit instantly.
Supportive financial tools
An online house loan also offers a plethora of additional online tools like a loan eligibility calculator, home loan EMI calculator and several others. For instance, an EMI calculator allows them to estimate monthly instalments beforehand.
Similarly, they can use the eligibility calculator to check the requisites needed for availing a house loan.
Subsidised interest rate under PMAY
Individuals can avail of any of the two e-home loan interest rates- fixed or floating. Along with that, they can opt for a loan under the PMAY scheme and avail of subsidy on the interest rate. However, before applying under this CLSS scheme, know the Pradhan Mantri Awas Yojana eligibility criteria from your lender’s website.
It will allow you to reduce the EMI burden significantly.
Prompt balance transfer facility
Another effective way to reduce the interest rates and avail better service is opting for a home loan balance transfer. Individuals can transfer their outstanding house loan balance to a new lender who offers lower interest rate.
For more clarification, you need to understand how a house loan balance transfer works. For instance, assume a loan outstanding of Rs.40 lakh with an interest rate of 8.5% for the remaining tenor of 15 years. If you transfer the amount to a lender who offers an interest rate of 6.75%, you will save Rs.7,18,920 on interest payment.
Online account management
Another amazing benefit is that the user gets online account management where all the things can be managed in one place. One of the greatest benefits of availing of an e-home loan is that individuals can keep track of their funds online. They do not have to contact a lender every time they have to check the outstanding balance or any loan component.
Moreover, while they use a dedicated app for the loan, they get notified about the EMI due date. It ascertains on-time repayment of the loan without fail.
Thus, the above-mentioned points were some useful benefits and features which you can enjoy while availing e-home loan online.
Therefore, individuals can avail of an e-house loan and avoid the hassles of servicing a loan offline. It helps them to keep track of the loan account and any changes made to it.