Take the digital route for a smoother, quicker home loan

From smartphones to smart fridges, industry 4.0 has played a major role in advancing most areas of our everyday lives. The new age customer is not only savvy but with increasing knowledge available at his disposal, has developed a keen sense of understanding of the changing credit landscape in the country. Thus, he has justifiably newer demands in terms of credit facilities. Emerging technologies provide numerous platforms where an individual can easily avail home loan services without having to wait for hours standing in long queues, outside lenders’ offices. With few a clicks, a customer can simply apply for home loans. The lower segment of the population are also leveraging the digital revolution since internet is penetrating deeper in our society. Here are some ways in which digitalisation facilitates a smoother and quicker process to secure a suitable home loan.

Quicker consumer engagement

Different processes like sourcing of application, various front-end and back-end operations as well as post-loan disbursement life cycle management of customers are getting digitalised to improve the efficiency and provide superior experience to the customer. A customer has quick access to important information and other details provided to him via company’s online portal or by text messages. During the entire procedure- from login to the disbursement, the lending company will keep the customer constantly updated about his application status.

Increased reach and expansion

Advanced technology enables companies to reach a niche segment of customers in rural and remote areas of the country even without physical a branch setup. This has been achieved by training sales personnel with the latest trends in technology like scanners or tablets for a smoother and quicker process. Hence, this improves the turnaround time and the customers are not required to wait unnecessarily and submit countless documents to the company. The digitalisation in repayment through eNach (the electronic process of helping the banks, financial institutions and other government bodies to provide automated payment services) ensures timely debit of EMI from the customer account and the online collection module helps to reach the end consumer.

Customised products

One of the major advantages of technology is that it allows personalisation of loans and plans in alignment to the customer’s requirement. It enables an individual to customise a product and helps them to handle their finances in a better and organised manner. They can transact whenever they want to and get a prompt status of every action made, by the lender.

Paperless procedures

Technology aims for automation of significant procedures. This automatic process includes E-KYC system, Aadhar card uploading system and inter-face with various verification agencies through the credit bureau which is done online, without wasting the customer’s time.

The digitalisation approach has created synergies in business, operations, analytics, and mobile solutions through the seamless integration of technology. It has helped customers to identify and avail financial offerings in an efficient and cost-effective manner. Hence, technology is now not required only for transaction but it has become all pervasive. Customers would be to apply for a home loan as easily as shopping online in a matter of years.

TECH SUPPORT

• Information and details about lenders and products available online
   
• Online application and approval of loan
   
• Reduced dependence on paperwork and documentation
   
• Faster turnaround and disbursement of loan
   
• Lenders can service customers even without physical presence

The writer is managing director and CEO, Aadhar Housing Finance