Paperless house loans could soon become a reality due to the Ministry of Electronics & Information Technology's (MeitY) recent initiative to digitize several new forms of contracts.
Many visits to the bank are required for the traditional home loan application process, which is considered cumbersome. Along with stacks of papers, the documentation procedure also comprises documents from third parties, house loan agreements, etc.
Speaking on behalf of National E-governance Services (NESL) at the Indian Banks Association's banking technology conference on Saturday in Mumbai, Debajyoti Ray Chaudhuri said: "Home loans can now be classified as digital documentation according to a recent announcement from MeitY. Even though we are still working on it, it is now a possibility. The options are infinite with the addition of vendor and supplier agreements. In my scenario, any contract might be made available in Demat form."
Banks can enter contracts electronically thanks to NESL's digital document execution service.
Additionally, bankers anticipate a sharp increase in digital lending over the next few years.
The State Bank of India, the biggest bank in India, has already built a loan portfolio of Rs 65,000 crore by allowing users of its mobile app Yono to apply for loans with just a few clicks. "This year, we anticipate the portfolio to surpass Rs 1 lakh crore. In addition, online in-principle approval for a home, gold, and vehicle loan is available, "Times of India cited Dinesh Khara, the chairman of SBI.