The company is reaching to customers directly and passes on the cost saved on intermediation to them as attractive interest rates. There are no charge while applying for the loan and post-loan disbursal.
“However, before choosing the lender, you should always compare the home loan offers in the market not only at affordable rates but also evaluate services and charges,” says Raj Khosla, founder and MD of . You must compare the offers on home loan aggregator website, then opt for the best scheme.
Before applying for a home loan, you need to access whether such facility is available from a digital home loan lender like Navi,” says Khosla
“Navi Finserv is RBI registered NBFC thus any offering coming from them is under the purview of the regulator and also NBFC ombudsman,” says Khosla. So, it seems safe to apply for a home loan through a Navi app.
Now, Navi mainly focuses on non-affordable customers and mostly serves salaried customers. “They should also have strong offerings and similar home loan schemes for self-employed individuals,” says Monga.
The external benchmark Navi uses is the three-month TBLR rate. That is a much volatile rate and would result in home loan rates moving every quarter confusing the borrowers.
“NAVI’s home loan scheme is a new product in the market. So, it will be a good a customer practice if the lender could share product details, including property valuation method and loan eligibility criteria in more detail on their website,” says Khosla. At present, not much is known of these aspects on its own website.
In users with personal loan offers containing PAN data and faced social media backlash
According to the terms, lender do not permit the borrowers to remove the Navi app from the mobile device until you repay the loan. In case you are compelled to remove the app from your mobile device, then you have an option of sending a mail to Navi. Any violation of this term will be tantamount to fraud, and the lender may initiate legal proceedings against you.
The home loans are for long tenures, i.e. 15-20 years. During a long tenure, there are several difficulties in the financial journey of the borrower. “You may need to re-negotiate and re-structure the home loan instalments. The fintech lenders need to have the flexibility to re-model and re-negotiate like traditional banks.
Digital lenders offer convenience, but because the relationship is typically entirely digital, they rely on a lot of access to your personal data stored on your mobile phone. “Understand how the personal data and home loan documents are being preserved by the fintech lender,” says Monga. It’s also important for customers to know the management background and how well the digital lender is funded before applying for a home loan.
If you must go with a digital lender, keep the tenure short and the loan amount as low as possible. If you wish to stay conservative, banks and housing finance companies offer you competitive rates as well.
The lender has linked the home loan interest rates to an external benchmark i.e. Treasury Bill Benchmark linked Lending Rate (TBLR). The customers also have the option to choose a fixed rate in place of a variable rate for three years. “The lender decides the home loan eligibility of any customer based on their credit scorecard, which is favorable,” says Atul Monga, Co-founder and CEO of BASIC Home Loan. He adds, the lender also calculates the interest rates based on the customer profile and internal pricing framework of the company.