State Bank of India: Plans Online Approval for Housing Loans via CIBIL.!


In a move that could improve its flow of housing loans business, SBI (State Bank of India) is putting in place an online sanction process which allows the bank to instantaneously approve loan amounts by linking its portal with CIBIL (Credit Information Bureau of India)

The SBI is in the process of appointing service providers who will put in place systems that will enable automated processing of the home loan applications by verifying the information submitted online with CIBIL's database.

Home Loan Approved by System..!

After the home loan is approved by the system, the borrower will have to get supporting documents & get the property cleared. The online application process will be available to borrowers who wish to refinance their loans.

According to  a senior official of the bank, "It will take a while for the system to be in place but once that is done it will be able to verify most of the records online. Once the home loan is approved, it will be mapped to the nearest office based on PIN code for disbursement,"

 While the home loan approval will be instantaneous, the borrower would still have to get the property cleared.

The bank official also said,  "SBI loans are the cheapest in India and there is no reason why borrowers should go to another lender. The online application system will make it easier for borrowers who are tentative about getting their home loans being approved ,"

.Mr. Pratip Chaudhuri, Chairman, SBI, said, ''Our home loan disbursements doubled to Rs. 150 crore a day after the bank cut rates in October, 2012. The bank charges 10 per cent on loans up to Rs. 30 lakh and 10.15 per cent on loans above Rs. 30 lakh."

CIBIL  officials said, ''Many foreign bankd and private banks had put in place automated processing systems for consumer durable finance, credit cards & personal loans. But this was the first time that it was being done for housing loans. Besides confirming information of borrowers' income and indebtedness, banks are able to confirm PAN details by connecting to NSDL servers."

Recently, Standard Chartered introduced a solution where a digital application was given in-principle approval in five (5) minutes. The loan would be disbursed after the borrower completing KYC documentation.

Src: TOI
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