Home Loan Goes Paperless in coming days

MUMBAI: A recent notification by the ministry of electronics & information technology (MeitY) has made it possible to digitise several new types of contracts like mortgages and other property documents that will give a major push to the digitisation of home loans.

“Recently, MeitY has issued a notification which allows home loans to be brought under the digital documentation category. We are still working on that, but that is now a distinct possibility. With vendor and supplier agreements being brought in, the possibilities are endless. I can visualise a situation when any contract can be available in demat form,” said National E-governance Services.

According to Khara, SBI has had ‘phenomenal’ data since 2005,which could be used for risk management and analytics for various purposes.
According to Bank of Baroda MD & CEO Sanjiv Chadha, in the last three years, the bank has managed to grow its business by 34-40%, while its branch network has shrunk by 15% and employee headcount was steady. “The usual link between a growing business and growing physical footprint has been broken forever,” said Chadha.

IDFC First Bank MD & CEO V Vaidyanathan said digital banking is helping to address one of the paradoxes in banking where those who take smaller loans pay higher prices because of the cost of operations. Vaidyanathan said that with digitisation, fudging of identity documents and bank statements has come down. “Earlier, banks monitored the loan portfolio every month, while now they can do it on a real-time basis. Collections have become easier as customers now get a UPI link. At every stage, the ecosystem is dramatically changing,” said Vaidyanathan.