{"id":349,"date":"2020-07-08T16:24:27","date_gmt":"2020-07-08T16:24:27","guid":{"rendered":"https:\/\/www.loanfasttrack.com\/blog\/?p=349"},"modified":"2020-07-08T16:24:27","modified_gmt":"2020-07-08T16:24:27","slug":"the-slow-down-home-loan-industry-is-now-reviving","status":"publish","type":"post","link":"https:\/\/www.loanfasttrack.com\/blog\/blog\/finance\/the-slow-down-home-loan-industry-is-now-reviving\/","title":{"rendered":"The Slow Down Home Loan Industry Is Now Reviving"},"content":{"rendered":"\n
\"Home<\/figure>\n\n\n\n

The\nhome loan industry is one such industry which has been badly hit by the\ncoronavirus pandemic. The lending institutions like banks, survive majorly on\nthe lending business i.e. the loans. With coronavirus the home loan industry\nalso took the toll. The real estate business and the inventories of the\nbuilders were hit hard which had a direct impact on the home loan businesses of\nthe banks. With the lockdown being lifted in the city and in the country, the\nhome loan industry has also started reviving. The home loan branches of the\nbanks have slowly started their operations with minimal staff and new measures.\nWhile the pandemic has affected the pockets of the people, it has also\nincreased the risk of funding for the banks. Many private banks have therefore\nimplemented its new banking norms to safeguard their increasing number of\nNPAs. <\/p>\n\n\n\n

The\nfresh look of the home loan industry starts with sanitizing the physical\ndocuments that are being collected from the clients. The internal working\nstaffs of the banks also do rotate in batches of 15 working days as a safety\nmeasure implemented by some banks. This has increased the turnaround time for\nloan processing by another 5-7 working days. Banks have also started with\nonline processing of the loans. The applicant can apply for a home loan through\ntheir online portals by also uploading the required set of documents for\nprocessing. <\/p>\n\n\n\n

With\nthe revival, banks have framed their new norms, altered their LTV ratios, changed\neligibility criteria, etc. owing to the interrupted earnings of the people. The\nnew home loan cases are done with strict scrutiny of the income & earnings\nof the applicant. Banks have also tightened their norms towards applicant’s\nprofiles, industries, findings and income criteria. Prior to the pandemic\neffect, it was much easier for the loan borrower to apply with his desired\nchoice of bank. Post pandemic difficulties for him have increased especially\nfor those with interrupted monthly income. Although the lending rates have\ntouched a new all time low of 10 years, the existing home loan borrowers with\ninterrupted income are increasingly finding it difficult to enjoy the benefit\nof the reduced interest rates. The existing interest rates for many banks are\nyet to be revised to match the new prevailing low interest rates and so those\nwho wish to enjoy the benefits of the low interest rate by switching their loan\nto a new bank face hurdles due to their interrupted income flow. Read to Know How To Deal With\nThe Increasing Interest Rates Of Housing Loans<\/strong><\/a>.<\/strong><\/p>\n\n\n\n


\nMentioned\nbelow are some of the new reforms of the banks.<\/strong><\/p>\n\n\n\n

1)\nFor those applying for fresh home loan<\/p>\n\n\n\n