Five Tips to Choose the Right Digital Platform for Home Loans

Individuals seeking real estate purchase deals usually avail of housing finance if they do not wish to deplete their savings. Home Loans present the perfect funding alternative with convenient schemes, making it easier for borrowers to repay loans with customised repayment options and flexible terms. Many people are, however, wary of availing housing loans due to the long process and voluminous paperwork involved. Home Loan digital lending platforms have overhauled the entire procedure for securing Home Loans with a few easy clicks, rendering them simpler and completely paperless.  

What Is a Digital Lending Platform?

A digital lending platform is the use of technology that allows financial institutions to extend loans and recover them through web platforms or mobile apps. It facilitates speedy disbursal and helps lower loan costs. Lending service providers utilise their digital platforms to collaborate with financial institutions that dispense credit to customers.  

Digital lending includes managing Home Loans and the associated processes online through user-friendly platforms. Digital and cashless payment systems have given a boost to the digitalisation of the lending process.

Why Do Lenders Need Digital Lending Platforms?

Digital lending allows borrowers to apply for a loan from an internet-enabled device based anywhere in the world. Lending companies, on their part, provide loans using digital banking. The traditional process of loan disbursement can get exhaustive for both lenders and customers. With the shift towards digitalisation, the lending process has become swift and convenient for both parties involved.  

Lenders benefit through digital lending in the following ways: 

• It provides a more effective loan disbursement process. 
• It simplifies the method to store and retrieve applicant details and loan-related information. 
• The digital lending process guarantees prompt decision-making. 
• It increases productivity, efficiency and provides higher growth opportunities.  
• It improves the working relationship between lenders and borrowers. 
• The platform eliminates irregularities in underwriting decisions and ensures uniformity in lending decisions.  
• It enables lending companies to address loan applications with a quick turnaround time.  

Ensure Digital Safety Through RBI-Registered Platforms

There are several digital lending platforms available today but making the right selection demands judicious thought. Always borrow through registered digital lenders’ websites and applications. Choose a Home Loan digital platform that is associated with either a bank or Non-Banking Finance Company (NBFC) registered with the Reserve Bank of India. The RBI periodically publishes a list of lenders on its website and one can check the lender’s credentials, reducing the risk of choosing an unauthorised lender.

Notwithstanding, it is the customer’s responsibility to make sure that the information they provide to their digital lender of choice and the journey of their Home Loan are in line with applicable RBI regulations. As a safeguard against unscrupulous apps that generate fake websites, visit the official lender portals when you check their websites. 

It is also equally important to know if the digital Home Loan platform is ISO:9001 and ISO:27001 certified. This will assure you of a lender who adheres to world-class superior data management practices. Moreover, it implies ample protection of your privacy and a secure transaction at all times.  

Five Basic Tips to Find the Right Platform for Home Loans

Given below are a few pointers to consider that will help you choose the right digital platform for your Home Loan requirements: 

1. Check Your Digital Lending Platform’s Credibility

A digital Home Loan platform will assist you in finding attractive Home Loan offers, enabling you to choose better. Sometimes, the digital lending platform may also issue Home Loans on its books. In either case, it is advisable to check the digital lender’s credibility in the market. This will not only affect the quality of the Home Loan you seek or the home buying experience, but also the working relationship with your lender which is likely to last the next 10 to 30 years.  

2. Choose a Platform with Optimal Options

Industry insiders recommend selecting a digital platform that aggregates and manages housing loan applications for multiple lenders. This guarantees you the ideal pick of Home Loans from a host of available options. One of the benefits, in this case, is that if something goes wrong with the initial lender, the digital platform can automatically switch you to another one that suits your needs.  

3. Verify the Services and Benefits on Offer 

The process of obtaining a Home Loan is much more convenient, quicker, comfortable and less stressful due to digital lending services. Within a few hours of submitting a loan application, consumers can expect a direct transfer of loan funds into their bank accounts from the comfort of their homes. Digital lending has simplified Home Loan procedures. Chatbots and AI-enabled technology extend 24-hour active support, responding to customer queries and complaints.  

A digital lending platform is necessary to aid in sturdy and real-time customer service processes. For instance, a reliable digital platform provides services such as sending EMI payment reminders via email or SMS to enhance customer connect. Remember to confirm if they extend expert help or human intervention, whenever necessary, in the event things don’t go as planned; or for redressal of customer grievances.  

4. Read the Loan Agreement Terms Carefully

Most individuals avoid reading through endless documents and official papers, partly due to the jargon and partly due to time constraints. Even when it comes to the Home Loan agreement, they simply click on the ‘Agree’ option without reading the attached terms and conditions. It is essential to read them through and understand each clause for your financial security. Verify the interest rate and see if the details mentioned therein match your requirements. 

5. Scrutinise the Digital Platform’s Play Store Ratings

You must view the lending platform’s ratings on Play Store and read through the information shared on the description page to learn more about the lender, its lending policies, terms and conditions and borrower reviews. However, exercise caution when you download the app. Take a look at the author reviews and related posts to understand whether they are genuine. If the app is new on Play Store or has few downloads, it is best to avoid it so as not to end up with unwanted lender applications that may threaten online security. 

Additional Read: Common Myths About Home Loans You Need to Know

The Final Word

There are a number of digital lending platforms in the market. But some of them could be unregulated and unregistered and may even extend small loans to customers. The RBI has recently revised digital lending guidelines to protect borrowers from fraudulent lending practices. These guidelines ensure that the credit you avail is secure and accessible. Bear in mind the tips mentioned here to shield your financial interests and enjoy the ideal Home Loan journey.