Just a loan away

The home loan market is set to undergo a sea change in the age of digitisation, making the disbursal journey easy

For many, securing a home loan is one of the biggest financial decisions. And, often, most lenders cannot accept a loan seeker’s application for various reasons. Providing documentation is a huge task, specifically for housing or mortgage loans due to their high ticket size compared to other loans.

Housing Finance Companies (HFC) require data to ascertain an applicant’s ability to repay the loan on time. And this goes beyond sharing bank account information and payslips. Obtaining data that can assist home loan lenders in making the best decision is difficult. Providing and collecting hard copies of PDF documents is a time-consuming procedure for both applicants and housing finance businesses. Some applicants may also tamper with these documents. As a result, many lenders need to process data via screen scraping, which entails gaining access to your banking information using your credentials. This is a perilous task.

However, with the RBI’s approval of the Account Aggregators (AAs) and the Open Credit Enablement Network (OCEN), the home loan market is about to undergo a sea change. This is the first step towards enabling thousands of people to provide consent to exchange financial data between institutions and apply for loans.