ICICI Bank has introduced digital home loans and top-ups where customers can get an instant sanction and disbursement, subject to the borrower’s eligibility.
The bank would deploy employees with devices in sourcing locations to enable a customer to fill in the details and obtain an instant sanction or get a top-up loan in their account immediately. “When we have already done a credit scoring of the customer and his bank statements and estimation of income, what value addition a personal interaction can do? We don’t want them to wait for an income statement and then obtain a bank statement printout from our branch and hand it over to the home loan department,” said ICICI Bank ED Anup Bagchi.
He added that the value addition can come from helping the customer in finding property from among the bank’s 30,000 projects.
An instant top-up loan is feasible as the bank already has the security of the mortgage. Often there is headroom to lend more either because the borrower has taken a lower loan than he is eligible to or having repaid the loan he can borrow afresh. According to Bagchi, these loans are useful when borrowers renovate their homes or refurbish them after purchase.
The bank has also grown the number of its mortgage sourcing offices by 50% to1,500 in FY19 in a bid to achieve its target of Rs 2 lakh crore home loan portfolio by March 2020. ICICI Bank’s home loan portfolio at Rs 1.7 lakh crore has grown 19% y-o-y as on December 31, 2018. Home loans accounted for about 88% of the bank’s total retail portfolio. Retail loans are 59% of the bank’s total advances.