The home loans segment competition heats up to the peak. In the last couple of weeks many banks have reduced the home loans interest rates and offered various kick backs to stimulate the home loans disbursements, SBI India’s largest bank and market leader in the home loans wants to use the technology to acquire the new home loans customers. To attract the next generation customers, SBI has started working on the online home loans approval without the customer visiting the branch. This facility is currently under development stage and soon will hit the market. As you know, SBI has the lowest interest rates among the other banks, to survive in the competitive market they come up with many innovative ideas to stay in the race.
According the SBI source, the loan application would go through the four stage process. A customer can open the portal and submit the home loans application. While he submits the application, he has the option to choose the nearest SBI bank’s branch. All the branches will be linked to the online home loans application. The application submission process involves with the basic details like loan amount, income and Know Your Customer (KYC).
After submitting the application, it will go through the four stage validation process to approve the application. The following are the steps:
- Online PAN verification (how to apply pan card online?)
- Online enquiry with CIBIL (How to Improve Your Credit History?)
- Online verification of loan eligibility (all about home loans)
- Evaluation of the customer based on internal risk scoring model and loan policy
If the above four stages are successfully passed, an email will be sent to the customer with sanction letter. It is a digitally signed copy which is a valid proof that your home loan is sanction by SBI and it is awaiting for the disbursement. A bank employee would communicate to the customer and arrange for the loan disbursement. There is no need for a customer to walk in to the branch for the entire process.
Other than the loan application, SBI would also have a property search feature to find the suitable properties in the city. Customer can choose a property and apply for the loan. The listed properties are already approve by SBI for the home loans. Please note that SBI has the 26% market share in the home loans segment. It is not indicated that when this facility will be launched from SBI.