You will soon be able to track the status of your loan applications online. Recently, finance minister Nirmala Sitharaman announced the launch of the facility for online tracking of loan applications by customers of retail, MSME, housing, vehicle, working capital, limit enhancements, renewals and so on.
While some lending institutions already have a loan application tracking facility on their websites, the service is limited to few specific type of loan applications. For instance, HDFC Bank Ltd offers the online facility to track the status of applications for personal, business, car, two-wheeler loans and loan against property, among others. Similarly, State Bank of India offers online tracking of applications for retail and agriculture loans.
When you apply for a home loan, the application goes through different stages.
You are first required to submit your identity, address and income proofs, among other documents, along with the application form to help the lender evaluate your creditworthiness or the loan amount they can sanction to you. Home loan eligibility may differ based on your credit history, income level, outstanding debts, age and so on.
At the next stage, the lender evaluates the property papers such as title document, land use, building plan, layout and map. The lender also carries out physical inspection of the property simultaneously. Once the lender is satisfied, it assesses the property value, based on which the final loan amount is decided.
Typically, it takes about 15 days to carry out the verifications and process a home loan application.
Sometimes it may even take more than a month or two, depending on the availability of documents. Given the complexity and the long process involved before a home loan is sanctioned, tracking its status can help you save time and plan your next course of action accordingly.