Home Loan

Stricter Verification Process for Home Loan

Looking at the recent fraud cases in the banking sector, home loan borrowers now might have to face a stricter verification process. As reported in media, Punjab National Bank (PNB) reported the highest loss in terms of money. It has lost Rs 2,810 crore in the last financial year. Bank of India (BOI) has lost Rs 2,770 in fraud and State Bank of India (SBI) took a hit of Rs 2,420 crore. However, some lenders have been able to control the fraud which includes DCB bank, IDFC Bank and Dhanlaxmi Bank.

Seeing that the average size of the fraud in the banking sector is quite high, hence the financial controls and rules need to be urgently revisited and strengthened for the betterment of financial institutions.

Therefore, from now onwards borrowers who are looking for a higher loan amount from financial institutions would have to go through a stricter verification process. This move might have some serious effect on the borrowers of home loan. So, if you are planning to apply for a home loan then be prepared for a stricter and rigorous verification process.

But it is not necessary that you have to face this stricter process. You can still improve your chances of getting a hassle free loan by following certain tips that are mentioned below.

•Try to apply for the home loan with the bank where you have an existing account.

•Credit score plays a crucial role in determining the eligibility for home loan. So try to maintain a healthy credit score for a hassle free processing of the home loan.

•Arrange and organise all the necessary and required documents that includes your pan card, aadhaar card, voter ID, driving licence, income tax proofs, salary slips amongst others. If you are ready with all the required documents then the home loan process becomes much smoother and easier.

•Be sure that your account does not reflect any serious offence such as cheque bounce. Hence you should avoid any such serious financial offence.

• Banks usually finance 80 to 85 percent of the property cost. However if your share in the purchase in terms of down payment is higher, then the banks will be willing to grant you the loan more easily.

So, the stricter verification process will be indeed tough but it will bring more transparency. And if you have all documents ready and your background is clear with healthy records then you can easily get the home loan.