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How to Get Instant Approval on Home Loans

by Expert
home loan in India

A home loan is a credit facility that enables you to borrow funds for the purchase of a property. The loan process, however, can get tedious and lengthy as it involves several steps, such as making a home loan application, processing, getting approval and, most importantly, establishing if you are eligible for a home loan. Banks and lenders, therefore, offer pre-approved instant home loans to speed up the loan process.

What Is an Instant Home Loan?

Instant home loans are pre-approved home loans extended to customers with immediate sanction. The loan amount is disbursed much quicker upon completion of property verification. Home loan pre-approval means prequalifying for a home loan even before you finalise the property. Lenders give pre-approved home loans to financially sound customers. These offers are extended based on a person’s repayment capacity, which is determined by their monetary position, salary, income stability and credit score/CIBIL score.

Online Instant Home Loans

Lenders also proffer the option of instant home loans online by letting customers make online pre-approval applications. This is a faster and easier way to get instant approval on your home loan since it can be conveniently done from anywhere, at any time. You can instantly receive your digital home loan sanction, which comes with a validity offer of 180 days. This gives you sufficient time to finalise your house of choice.

Features and Benefits of Pre-Approved Home Loans

When seeking instant approval on your home loans, pre-approved loans offer several interesting features and benefits such as:

1. Limited period offers:

Lenders extend instant home loan offerings for a fixed period, even before customers have selected their property. The loans are tendered at low-interest rates with added benefits, such as no processing and documentation fees. But, to avail of the offer, the customer needs to finalise the house within the stipulated time frame. Even though the offer is pre-approved, the loan amount is sanctioned to the applicant only after the house meets the conditions of the lender. The prospective borrower can expect the loan to be sanctioned instantly if s/he meets all the requirements.

2. Easier fund management:

An instant home loan enables you to manage your funds as per your budget. Since the loan offer is made well in advance, applicants are aware of the capital available to them. Therefore, they can look for properties that meet their financial criteria and assess the loan potential before deciding on the house. The property to be bought is set within a limit, which makes the loans easier to manage.

3. Favourable negotiating terms:

A pre-approved home loan fetches you favourable terms when negotiating with the builder or dealer. It assures the builder of your purchasing capability and intent. They are also far more likely to offer suitable terms and discounts as they can expect timely payments from you.         

4. Quick processing and disbursal:

Your loan is processed faster when availing of a pre-approved home loan. Generally, scrutinising your creditworthiness, assessing the funding risk are the main causes of delay in the process of loan approval. But, when you are pre-approved, you save on time. Pre-approval is useful when you have a shorter window for transactions. This proves crucial as compared to a regular home loan process, which is more time-consuming.

Eligibility Criteria of Pre-Approved Home Loans

The basic factors that determine eligibility for availing instant home loans are similar to those of conventional home loans. Both salaried and self-employed applicants are eligible for a pre-approved home loan. The eligibility criteria include:

  • Applicants must be residing Indian citizens.
  • In the case of salaried applicants, they should be within the age group of 23-62 years. But, in the case of self-employed applicants, they should be between 25-70 years.
  • Salaried applicants must have a minimum of 3 years of work experience, while self-employed individuals must show a business vintage of at least 5 years in the present enterprise.

Documents Required for Instant Home Loans

All applicants are required to furnish property documents, such as an allotment letter, sale agreement, receipts of payments made to the agent or developer, etc. Apart from this, there are a few essential documents that are necessary when seeking instant home loan approval. Some of them are listed below:

  • KYC documents (documents that are given as proofs of identity and address)
  • Income proof – Salaried applicants should have the latest salary slips and Form 16. Self-employed applicants must submit P&L statements and TR documents.
  • Proof of business existence with a vintage of at least 5 years (for self-employed applicants only)
  • Bank account statements of the last 6 months.

This list of documents is indicative. Borrowers may need to furnish other documents required for home loan based on the specifications of their respective lenders.

Summing Up    

An instant home loan is pre-approved because the lender is aware of the financial potential of the customer. And, they are instant in nature since they are disbursed almost instantly. Pre-approved home loans can set the pace for your dream home when you seek instant loan approval. But, weigh the pros and cons of your finances and your requirements, before taking the plunge.

Apply for an instant home loan with any of the leading lenders in the market today for a hassle-free loan experience. It is easy to get instant approval on your home loans with relaxed eligibility criteria, low-interest rates (starting at 6.65%*p.a.), minimal document requirements, and a flexible tenor extending up to 30 years.

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