Home Loan: Ministry of Electronics and Information Technology (MeitY) has made it possible to digitize mortgage and other property documents for many new types of loans
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Paperless Home Loan: If you want to take a home loan, then you do not have to worry. Now you can get home loan soonHome loan) will be able to take advantage of the paperless process. Because soon home loan process will be paperless (Paperless Process) is going to happen. Due to which people will not take much time to take home. The Ministry of Electronics and Information Technology (MeitY) has made it possible to digitize mortgage and other property documents for several new types of loans, which will give a boost to the digitization of home loans. Recently, MeitY has issued a notification which allows home loans to come under the digital category. That’s still being worked on, but now it’s a distinct possibility.
The CEO of the bank says that he expects that digital or direct lending will increase bank credit dramatically. SBI Chairman Dinesh Khara said the lender has disbursed loans worth Rs 65,000 crore by enabling customers to borrow with a few clicks on the bank’s mobile app YONO. This year the portfolio will cross Rs 1 lakh crore. Apart from this, in-principle approval of Car Loan, Gold Loan and Home Loan is being provided online.
Apart from digital, what has made online lending possible for banks is the availability of data. Both structured and unstructured – and credit scores. Banks are also using technology that will take into account unstructured data including social media, which will help them build credit profiles. According to Khara, SBI has ‘unprecedented’ data since 2005, which can be used for risk management and analysis for various purposes.
number of employees remained constant
According to Sanjeev Chadha, MD & CEO, Bank of Baroda, in the last three years, the bank has managed to grow its business by 34-40% while its branch network has decreased by 15% and employee strength has remained stable . Chadha said that the usual link between growing business and growing physical footprint has been broken forever.
Reduction in rigging in bank statements
V Vaidyanathan, MD & CEO, IDFC First Bank, said the digital process is helping address one of the paradoxes in banking, where small borrowers end up paying a higher price due to the cost of operations. Vaidyanathan said that with digitization, manipulation of identity documents and bank statements has come down. Earlier, banks used to monitor loan portfolio every month, whereas now they can do it on real time basis. Collection made easy as customers now get a UPI link.
English News Headline : You will soon get paperless home loan facility.
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