Indiabulls Housing digitises Housing Loans

Indiabulls Housing digitises Housing Loans

Indiabulls Housing Finance has become the first mortgage company to complete an end-to-end digitisation of loan sanctions. What this means is that a borrower can get now digitally sign a loan proposal, submit documents electronically and get a sanction based on salary documents all from a computer or tablet. 

According to Mr. Gagan Banga, MD, Indiabulls Housing Finance this was probably the first such initiative anywhere in the world and the new initiative was expected to increase productivity by 50% without additional manpower. "The government has been taking initiatives on digital India. We have used the various components that have been put in place in the last year and half to come up with a solution that is end-to-end digital," said Banga.

The digital framework that has enabled paperless sanction of home loans includes Aadhar's e-Signature and e-KYC. The e-KYC facility can be done from some Samsung phones with iris camera or from the field agent's device. 

The company also uses Perfios - a software that goes through bank statements to verify the borrower's income claims and cash flows. According to Banga, digital is a more transparent process as the borrower is always kept posted of the status of his application or any queries. The electronic version of the agreement is stored in the borrowers depository participant account with NSDL.

Indiabulls expects to improve the efficiency of its sales force from two loans per month to three loans following digitisation. "Our projection is that staff requirement will peak this year and we will not have to hire more people," he added. While the field staff will do the inspection of the property using their tablets and collect property related documents, the borrower would have to make a visit to the registration office as this is a statutory requirement. 

Indiabulls has been growing its home loan book very aggressively. The company has grown its mortgage book by 30% to Rs. 60,000 crore and has a total loan book size of Rs. 81,000 crore. "For the current year as well we have provided a guidance of 25- 30% growth," said Banga. Banga said that although it is end-to-end digital and can be completed by the borrower, Indiabulls has trained around 1700 people on the ground to assist applicants.

 "Any technology takes time to catch on. When Indiabulls started online stock trading in 2000 I would go to 60-year old traders who were fearful of the computer terminals and showed them how they were being fleeced by brokers who sold at the low price and bought at the high price," said Banga

Src: Times of India 

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