Why Should You Apply for an Online Home Loan?

Why Should You Apply for an Online Home Loan?

Although owning a home is among the basic needs of any individual, living in a house that resonates with a person’s lifestyle preferences often remains a dream. Buying a home is an expensive affair, and that is why home loans are an essential part of that procedure. The home loan market in India is enormous and has continued to grow in recent years. Home loans sanctioned by finance companies reached Rs. 79,043 crores in March 2021. Even during the outbreak of the Covid-19 pandemic, the home loan market has witnessed tremendous growth across the country.

Despite this market's sheer size, getting a home loan is not an easy task. It is notoriously a cumbersome process with painstaking documentation, verification, and legalities. The traditional way of buying a home loan is plagued with many challenges. That is why people have started preferring online platforms to purchase loans that offer a much better alternative.

Home Loan: Offline vs Online

Existing Roadblocks in Buying Home Loans:

1. Rejection of Application

One of the main pain points for customers in traditionally buying a home loan is the rejection of home loan applications. This rejection could be due to many reasons, like not submitting the proper documents or not meeting the right eligibility criteria for the lender. Besides, your home loan can also get rejected if the lender cannot authenticate your submitted details.

2. Charges Levied

Buying a loan is indeed a costly affair, especially due to the processing fees, legal charges, documentation fees, MODT charges, property valuation fees, and any other charges levied on the borrower. While every application will include a processing fee of 0.25% to 1%, if the application is rejected, those fees remain non-refundable. Besides, when repaying the loan, there will be charges like refinance costs, late payment penalties, simple interest, etc., that the borrower needs to be aware of.

Property valuation is something that needs to be addressed very carefully. This is because the purchasing price of your potential home could be higher than the lender’s evaluation. In such cases, you will have to pay the difference yourself. Thus, one needs to be careful of resale properties and choose the real estate investments carefully.

4. Down Payment Requirements

In most cases, the lender will fund 80% of the cost of your home loan. However, you will have to deposit around 20% of the price of the house as a down payment. If you fail to deposit the required sum, the lender could reject your application.

Why Choose Online Home Loans?

Compare the Alternatives

Comparing home loans offered by different banks and financial institutions gives online platforms an edge over traditional lending methods. With online loan aggregators, you can easily compare home loans, check out their interest rates, and select the suitable home loan option. You cannot do this type of comparison in the traditional way of buying a home loan, as you would have to visit every bank to understand their offerings.

Hands-on Tools

Applying for a home loan online has become hassle-free, thanks to the EMI calculator. Through convenient tools like a property loan EMI calculator, borrowers can figure out many things about the loan, like applicable interest rates, the total amount to be borrowed, and the entire loan duration. Furthermore, the EMI calculator can compute any payments you want to make, giving you a clear idea of your financial obligations.

Hassle-free Process

As discussed earlier, buying a loan is essentially a cumbersome process, especially when talking about the traditional way of acquiring a loan. Besides, this process typically robs you of your own working time. On the contrary, buying a home loan online is so much easier, hassle-free, and can be done on your own time, even on weekends. Furthermore, you need not visit a lender for every little task like submitting a document or signing a paper. And not to forget, it is the most efficient way to get instant home loan approval.

Enhanced Flexibility

All of us desire financial stability, and even when the home loan is sanctioned, your financial situation may go south. Even if this situation occurs, it is always easier to change the loan terms via an online executive instead of visiting the lender. Moreover, this arrangement ensures financial flexibility rather than succumbing to the additional burden.

Seamless Communication

One of the significant pain points of getting a home loan offline is the communication gap. No individual can visit the bank every other day for little queries. However, in the case of online home loan purchasing, you can always get in touch with loan representatives at any time during the day through the official website, portal or even app. Moreover, you can have direct communication via call or email with the loan representative, depending upon the severity of your issue.

Final Thoughts

For years, offline or traditional home loan purchasing has dominated the home loan market. Besides, as primitive as this method is, it continues to persist with some fundamental challenges. However, technology has simplified many existing gaps in the home loan market, especially with online loan aggregation platforms. These platforms have made buying a home loan easy and convenient, where all you need is a computer and internet connection.

KuberX, a tech-based platform, is focused on simplifying these persisting challenges in the lending market. It is a one-stop solution for home loan seekers where they can easily compare home loans offered by different financial institutions and apply for the one that suits their needs. With KuberX, you can apply for property loans, balance transfers, top-up loans, and home loans against property. All you have to do is sign-up/register on the KuberX platform, compare offers, select the suitable offer, and voila: your home loan is approved at the earliest. With this tech-driven solution, KuberX hopes to address the pain points of loan borrowers, making the home loan purchasing process a nuisance-free journey.