Renowned private lender Kotak Mahindra Bank is reportedly working on a plan to sanction home loans to self-employed applications within 24 hours to 48 hours. The bank has also mentioned that its salaried customers can receive their home loan approvals within just 4 hours of application. In the previous financial year, the bank reported a 25% growth in its home loans and loans issued against properties.
Ambuj Chandna, Kotak Mahindra Bank’s Senior Executive Vice President and Head of Consumer Assets, revealed this information in an interview to Moneycontrol. He is also optimistic about higher demand in the consumer lending sector.
When it comes to home loans, he noted that the bank is currently focusing on ways to reduce the processing time of applications. The bank aims to bring down the processing time by investing in various technological aspects including a decisioning online platform. The bank has already launched an initiative where salaried customers can get loan approvals within just four hours.
While salaried professionals can get home loans instantly, the approval process is not as simple for self-employed professionals. To overcome this challenge, Kotak Mahindra Bank has partnered with various industry players and invested in technology to analyse customer data in a better way. With these investments, the processing time can be significantly lowered, and approval can be provided within a maximum of 48 hours.
Home loans and loans against properties contribute to a significant portion of the loan book of Kotak Mahindra Bank. The bank ended the fiscal year 2018-19 with a loan book of Rs.2.05 lakh crore. Nearly 20% of these loans are home loans and loans against properties.
During the previous fiscal year, the bank also reported an improvement in the status of its non-performing assets (NPAs). For the fiscal year ended 31 March 2019, the bank has reported gross NPAs of 2.14% as against 2.22% in the previous fiscal year.