How have home loan approvals have changed over time

The entire episode had been a test of his patience. Several documents and multiple long forms later, Ravi found himself on tenterhooks for more than a month before the much awaited letter arrived in his mailbox. This wait had seemed like an eternal one. In between, he had kept all fingers crossed for his home loan application to be in order. His constant queries about the dream property remaining on the market had started getting frowns from the realtor. What followed was another process-ridden wait of actually getting the cash in hand. All in all, it was a good 4 months before Ravi could actually sit across the table to get the deal closed.


Thankfully, this was about ten years back.

Now, lenders have ramped up the entire loan approval process with transparent procedures, smooth online applications, and quicker responses. Though it still takes a bit of time for the approval or disapproval to come through, the wait is not as harrowing. This is because the online tracking system keeps applicants like Ravi updated with the going-ons in good time. At every stage, they have the option of deciding their next step without getting stressed, or waiting for the approval to arrive. Applicants can also gain an indicative approval of the amount they are eligible for, beforehand – all on the basis of the details provided while applying for the loan.

In addition to this, there are several apps that you can use to keep track of the loan approval period. There are apps that calculate your deductions, EMI payments etc.

More so, attractive interest rates are making housing loans more affordable and easier on the applicants’ pockets. One of the best features of these home loans is that they can be paid over a longer (and flexible) tenure in smaller EMIs, and as per the financial situation of applicants. For instance, Tata Capital offers home loans at floating interest rates that start at 9.45% for online applications received from salaried applicants. Ranging from Rs. 2 lakhs to Rs. 3 crores for properties for residential purposes, these loans offer loan tenure extending from 12 months to 360 months.

In most cases, no foreclosure charges are levied when the loans applied on floating interest rate basis are sanctioned to individual borrowers, or where they attract a fixed interest rate and are pre-closed with the borrower’s own sources. Quick, reliable and hassle-free, most online loan approvals lead to satisfying deal closures once the money is released. The options of availing fixed and floating rates, quick transfers of loan balance, low processing charges, prepayment modes before the due date, transparent processing, and other special benefits have made the entire loan approval process far easier than before.

Recently, Ravi’s son Aneesh, who works for a multinational firm in Hyderabad had filled in all necessary details online and was contacted by the lender’s representative within 24 hours. It was heartening for him to outline his home loan requirements with helpful inputs from the gentleman sitting across his office table. Everything was much simpler than what he had expected after the late night discussion with his dad. Once all the documentation was completed, Aneesh was back to his daily routine, all within the spate of a day. His house warming party was held exactly a month later.