A home search is a complicated process that doesn’t end after simply selecting a property. When the money factor comes in, things get even more complicated.
Smart financing is a key factor in affording a property of one’s choice. The loan process however can be intimidating for first-time buyers; especially when it comes to dealing with multiple forms, clauses, complex calculations, and budgets. So many families go through the
stress of whether or not they will be able to
finance their house. The industry is controlled by 25-30 players and there’s Rs 20,000 crore worth of loans disbursed in India monthly. The average consumer is unaware of these facts, and there’s complete lack of clarity in this domain. The situation is such that finding a
home loan is often tougher than finding a home.
There are three factors that define a home loan: the amount of the loan, the duration of the loan, and the interest rate. Each bank has its fixed rate card. So when you approach a bank, it doesn’t matter whether you’re a farmer in Punjab or a
businessman in Gujarat; the interest rate given to you will be the same. Even in terms of online assistance, consumers can merely compare different rate cards of banks. Presently, there’s simply no customisation when a user applies for home loans.
A better way to help streamline and simplify the home loan process is the need of the hour. The first step is to take this entire process online and ensure that what is being offered to consumers is not just a comparison tool but a complete solution. People applying for home loans should get results that are customised exactly as per their requirements. The impact that this can have is huge. For example, even 1% optimisation of Rs 20,000 crore can result in a
savings of Rs 200 crore monthly. Many people avoid applying for a home loan because they feel it’s not customised for them (interest rate is too high, loan repayment tenure is too short, etc). Effective customisation will go a long way in ensuring consumer confidence when applying for home loans since they will have the assurance that they are getting exactly what they need.
Housing.com is enabling such customisation to simplify the home loan application process. The company’s new service,
Housing Home Loans, has partnered with leading banks — including CitiBank, ICICI, Axis Bank, Bajaj FinServ, DHFL, L&T Finance and PNB Housing. Based on their inputs, users get the possible options that each bank can offer them. While many banks advertise their lowest possible
interest rates, what Housing provides is the lowest rate for which users are actually eligible for across all their partner institutions. Users can apply directly for their loans through the Housing Home Loans portal. This service assists users from initial research all the way through approval of the best loan for which they’re eligible.
Although at 46%, home loan has a good
market share of the loan industry in India, it has still not reached its full potential, with regards to helping people in a meaningful way. The right product will achieve this.
The article is submitted by housing.com
