The private lender aims to cross Rs 2 trillion in mortgage disbursals by March 2020
India's second largest private sector lender, ICICI Bank is going aggressive in the home loan market by giving its salaried customers instant online access to sanctions and disbursals, provided they meet the following criteria.
The lender, on March 27, said it has pre-approved home loans of up to Rs 1 crore for “lakhs” of its existing customers on the basis of their credit score by using data algorithms. These are based on "a combination of financial parameters such as credit bureau checks, salary credits, average balances, repayment track among others."
The bank is also providing instant top-up loans of up to Rs 20 lakh for a tenure of up to 10 years to existing home loan customers. However, there are no differential interest rates for loans availed digitally.
It usually takes seven to eight days for a customer to get final sanctions. While this process has been reduced to a click of a button, customers need to visit a branch or contact the relationship manager with the sanction letter and the documents of the home they wish to purchase.
Also, the customer need not have a property in mind before availing the instant sanction. "We have 30,000 plus approved projects, so the legal and technical will also be easy. We want to spend the time helping our customers get the right property through our 30,000 projects," said Anup Bagchi, Executive Director, ICICI Bank. He added that the disbursal in such a case could be achieved within a day.
In case, the customer chooses to go with property outside the lenders pool of projects, there might be delays owing to due diligence process that the bank will carry out to ascertain the legalities. There is also a chance of the loan getting rejected if the bank decides to do so on the basis of its findings.
However, the loan sanction remains valid for six months from the date of approval. The instant approvals are available on the lender's internet banking portal as of now. ICICI Bank plans to expand the facility on its mobile platform soon.
ICICI Bank aims to cross Rs 2 lakh crore in mortgage lending by March 2020. Its home loan book is at Rs 1.7 lakh crore currently, constituting to almost half of the retail book, Bagchi said.The lender is also focussing on growth in non-Tier 1 cities and affordable housing to push mortgage business. The bank said it is growing at the rate of 20 percent CAGR in these markets. "In line with this strategy, we have expanded our mortgage business to over 500 Tier 2, 3 and 4 markets this fiscal," the bank said.The Great Diwali Discount!
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