These days, most banks and Non-Banking Financial Companies (NBFCs) have an online presence through their websites. Some have upgraded their web and mobile technologies so as to provide a high degree of convenience to their customers. Individuals seeking finance may obtain all loan-related details as well as apply for a loan through the internet.
If you wish to obtain finance for purchasing your dream home, you may apply for a housing loan online. Most financial institutions offer lowered interest rate as they do not have to incur any physical expenses. Besides, you may reap the numerous benefits such online loans have to offer.
Following are five benefits of digitalization of housing loans.
1. Get all loan-related details
Lenders upload finance-related details on their website. The online portal provides information about the home loan eligibility and documentation required. Such websites also provide comprehensive information about interest rates, loan tenure, fees and charges, loan limit, besides others. You may, therefore, gain adequate knowledge before you avail of a housing loan.
2. Conduct extensive research on numerous options
Since various lenders have differential interest rates, you may conduct thorough research on the rates of numerous lenders and make a choice accordingly. You may also compare other factors like loan tenure, repayment options, and loan limit, besides others. You may, therefore, select the lender offering the best deal, based on your needs.
3. Calculate the installment amount
Lenders offer a digital calculation tool, known as an Equated Monthly Installment (EMI) calculator that helps you calculate the EMI amount. Such digital tools simplify the calculation process, which would otherwise be a cumbersome and time-consuming task. Online EMI calculators help in calculating the EMI amount based on your financial position. You may increase or decrease the EMI amount according to your cash inflow and expenses.
4. Apply for a loan
Traditionally, it was necessary to visit the lender’s branch and submit the loan application along with the necessary documents. However, with the advent of digitalization, you no longer have to invest time and effort to visit the lender’s branch. You may apply for a home loan on the lender’s website from the comfort of your home.
5. Get amortization schedule online
An amortization schedule is generally displayed in a tabular format. It shows the EMI payment history as well as the outstanding loan amount. The amortization schedule also helps to determine the monthly amount paid towards the principal and interest. The online amortization schedule enables you to determine your pending payments and helps you plan your finances accordingly.
Digitalization has helped banks and NBFCs increase their connectivity with not only customers but also employees. It is, therefore, important that lenders implement digital methods in order to provide customer-centric experience and gain an edge over their competitors.