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This Guide Will Help You Apply For A Home Loan Online

September 18 2015   |   Katya Naidu

Unsure about which bank you want to approach for a home loan? Check and compare before you apply for a home loan online when buying a property in India.

This can be done even before your zero-in on a property too. Which means you can select amongst the offers available depending on the building as well the budget.

Here are a few things to keep in mind when applying for home loan online:

Choose a web aggregator

The first step is to choose a web aggregator such as bankbazaar.com, paisabazaar.com or apnapaisa.com, for financial products. Even though many banks including Punjab National Bank (PNB) , ICICI, and HDFC, also allow you to apply for online home loans on their websites but web aggregators help you compare between the prevailing rates across banks. Certain web aggregators also promise to offer the least amount of documentation, faster process, have the best interface, and give the best offers for home loans. Look for aggregators that have tie-ups with renowned banks and ensure the clients are better serviced.

Get a quote & best offers available

After you zero down on a web aggregator, the second step is to answer the questions on your salary, location of property and its price, the developer and other details on a very user-friendly interface of the aggregator. After the details are taken by the aggregator, the website will show you the offers available, including interest rate charged, whether the loan is fixed or floating, equated monthly installment (EMI) , and term of the loan. It also lists out the one-time processing fees charged by each bank.

The aggregators also tell how much a borrower can save per month if they choose a certain product. Moreover, a few give away vouchers relevant to home buyers. Once this is listed, you can either choose from the options available or request a call back or sign up for the newsletter which informs you about new offers.

Submit the detail

Once you choose one of the offers available, you have to fill in a few more details such as PAN card number, address, authentication codes sent to your phone number, and details of existing loans, if any. After the details are filled, you will have to read and accept the conditions of the bank's details to seek a home loan. Most of the conditions are declaration that the details provided are true and also that the processing fee that is paid is non-refundable. Once you accept, your loan request will be sent to the bank or finance company that you have chosen. You can also sign up for quick home loan approvals.

If your loan is approved, you have to submit documents required and have a meeting with the loan officer, to negotiate further, if required. In case your loan is not approved, you will be informed so.

How big is the online loan market?

The disbursal of online loans grew by around 69 per cent between 2010-2014, according to a report by Ken Research. This is driven by increasing use of Internet, rising awareness amongst loan seekers along with tech savvy banks that choose to offer these services online. The major players in the online loan industry are HDFC, ICICI, State Bank of India (SBI) , and Axis Bank. The online market is evolving in major cities such as Delhi, Mumbai, Chennai, Pune, and Bengaluru.

Source: Indian Online Loans Market Outlook to 2019-Industry Transformation by the Advent of Web Aggregators by Ken Research

Why should I apply online?

Visit the websites of as many banks as possible to have the best comparison and know what rates are offered. Though that does not assure that is exactly the rate you will get for a particular property. For further details, you will have to contact the bank or visit them.But this hassle can be done away with it by visiting the web aggregators.

(Katya Naidu has been working as a business journalist for the last nine years, and has covered beats across banking, pharma, healthcare, telecom, technology, power, infrastructure, shipping and commodities)




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