How Has Online Home Loan Changed The Banking Sector

Online Home Loan

Owning a home for yourself is a life’s dream for many of us. The availability of home loan packages through all the leading banks and non-banking financial companies has also provided the impetus to purchase house property. Online Home loan schemes are on sale to suit your needs.

While the accessibility to a lending institution for seeking a home loan is not a difficult task, it is also undeniable that the process of applying for a home loan is a tedious one.

After you zero down on the lending institutions offering the home scheme best suited to your needs, you are required to visit them for a discussion with their loan officers. The entire structure of the home loan approval process is built around the concept of a physical visit of the customer to the bank.

Unless you have a meeting with the loan officer, the disbursal of the home loan will not commence.

COVID-19 Effect:

The global pandemic metamorphosed our lives indelibly. The rampant loss of lives, reduction or total loss of income etc., put through a roller coaster ride.

People learned the hard way of the value of investing in house properties that have an appreciable value. Investing in house properties started gaining further popularity during the pandemic, as other investment tools did not guarantee a return in a situation where the entire economy stopped functioning.

Work from home as a concept had become a reality during the pandemic. Hence, the requirement of bigger homes where you had a dedicated space for you to work started gaining popularity.

However, the biggest impediment in opting for home loan became people’s difficulty in physical movement. For a significant portion of the last two years, there were national lockdowns, partial restrictions on public movement and vehicular transport was significantly impaired. 

The existing practice of visiting the lending institution’s office to get a home loan sanctioned became a challenge.

The New Normal Syndrome of Online Home Loans:

As is the saying, “necessity is the mother of all inventions”. With the introduction of digital banking, the banks had introduced a process of online submission of home loan applications. The global pandemic fast-tracked the use of technology by both the lender and the borrower.


Financiers had to redraw their processes of home loan disbursal. They had to adopt the technology system for accepting loan documents, document verification and disbursal of loans. Even the traditional lenders of home loans woke up to the advantages of the online process. It may be safely put that optimum utilisation of online processes happened with the onset of the pandemic.

Advantages of Online Home Loan:

The online home loan process worked in favour of people in pandemic for the following reasons:

  • There is no physical contact; hence, social distancing can be maintained.
  • There is no dependence on the availability of transport to visit the bank.
  • Prospective borrowers could submit their home loan application on the bank’s online portal.
  • The documents like income proof, KYC, etc., can be uploaded online.
  • Very often, there are OTP based verification processes, which makes the transaction safe.
  • Verification of the KYC may be done digitally by the bank.
  • The income proof submitted by the borrower can be verified online.
  • The forms may be e-signed, which is a legally accepted document.
  • The processing charges may be paid through internet banking.

However, you are advised to conduct a thorough study of the various home loan schemes on sale. You may use the online home loan EMI calculator to ascertain the quantum of monthly liability that you will take on and make a final decision to opt for a home loan.


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