A Home Loan On WhatsApp? HDFC Says Yes
HDFC has launched its “spot offer” product using which borrowers can avail an initial approval letter for home loan within minutes
Borrowers may be able to get in-principle approval over WhatsApp within a couple of minutes of applying for a home loan.
Housing Development Finance Corp. has launched its “spot offer” product, through which borrowers can avail an initial approval letter within minutes.
The product has been developed in association with Cogno AI on WhatsApp’s business platform to offer a conditional home loan approval, the mortgage lender said in a statement. The product is currently available for salaried customers of HDFC.
Users have to initiate a conversation on HDFC’s WhatsApp number (+91 98670 00000) and provide some basic information such as their salary details, resident status, details of any other debt obligations, home address and permanent account number before availing the conditional approval letter instantly. An HDFC agent will then take the application process ahead for a final approval.
“Demand for housing in India continues to remain extremely robust. Today, there is a strong desire to be a homeowner and demand for housing continues to be from both first-time homeowners as well as those moving up the property ladder—generally into larger homes,” Renu Sud Karnad, managing director, HDFC, was quoted as saying in the statement. “Affordability today is also better than ever and in India as income levels rise, we will see younger people being able to afford housing sooner in life.”
HDFC’s latest product launch comes at a time India’s lending ecosystem is shifting toward a largely digital mode of distribution of loans. So far, lenders have made personal loans, credit cards and auto loans available within a short span of time for their customers. This is the first time that a home loan application process has been shortened to minutes.
The home financier said it has been receiving over 91% of new loan applications through digital channels, up from less than 20% before the Covid-19 pandemic.
As of March, HDFC’s assets under management stood at Rs 6.54 lakh crore, up 15% year-on-year. Individual home loans constituted 79% of these assets. Home loans have grown rapidly over the last year as lending rates were at their lowest. With the Reserve Bank of India raising the repo rate by 40 basis points earlier this month, lending rates across the market have already begun rising.