ICICI Bank launches instant paperless home loan approval

Last Updated: Fri, Mar 29, 2019 13:50 hrs

Mumbai: ICICI Bank has announced a service to offer home loans up to Rs 1 crore in a fully digital manner. The bank on Thursday launch of two instantaneous home loan facilities. While the first facility enables customers to get final sanction letter for new home loans instantaneously, the second service allows existing customers to take a top-up loan and instantly receive the money in their account.

The bank said that both the services were an industry first.

The 'Instant Home Loan' service for loans up to Rs 1 crore are available for a tenure of upto 30 years (based on the age of the customer) using the Bank's internet banking facility.

The bank said that customers need not visit the branch to submit physical documents like application form, KYC and income documents.

The bank will delived a sanction letter to the registered email id once the loan request is approved.

This sanction letter would be valid for six months. The borrower needs to visit the nearest branch or contact the assigned relationship manager with the sanction letter and the documents of the home he/she wants to purchase.

The second initiative, 'Insta Top Up Loan', helps existing home loan customers of the Bank to avail the facility of topping up his/her loan instantaneously upto Rs 20 lakh for a tenure upto 10 years, in a completely digital and paperless manner. The facility helps the customers to get the top up amount disbursed immediately in their account as compared to the industry practice of approving and disbursing a top-up home loan in a few working days.

The instant home loan facilities are powered by the Bank's efforts to complete the entire credit assessment of customers digitally, using data algorithms. The Bank examines the credit worthiness and eligibility of existing customers, by using an intelligent combination of multiple financial parameters such as credit bureau checks, salary credits, average balances, repayment track among others. Based on the credit score of the customer, the Bank provides a pre-approved new home loan or top-up home loan offer.

Anup Bagchi, Executive Director at ICICI Bank said, "Leveraging upon data analytics and technology, we have introduced a bouquet of instant products including the country's first instant credit card, insta personal loan, instant digital credit called Paylater, insta overdraft facility for MSMEs, instant opening of Public Provident Fund account facility, among others."

He said, "In 2016, we crossed the milestone of cumulatively disbursing mortgage loans of Rs. 1 trillion. We are on course of touching a mortgage portfolio of Rs 2 trillion by March 2020."

"Further, we believe that in addition to digitisation, outreach to tier II, III cities & micro-markets and focus on affordable housing is the key to rapid growth for our mortgage portfolio. In line with this strategy, we have expanded our mortgage business to over 500 tier II, III, IV markets this fiscal. With this expansion, we are now offering home loans at over 1500 locations, the maximum among private sector banks. In fact, our growth in disbursements in these markets is growing at a CAGR of over 20%, as compared to the industry average of 12%," added Bagchi.