17 AUGUST, 2022

Bank employees deal with the financial needs of their customers day in and day out. Having someone cater to their financial needs is equally important. Bank employees being bank employees, have it a little more accessible compared to other home loan applicants when applying for a home loan. Bank employees are at an advantage when it comes to benefits such as attractive housing loan interest, no requirement for a home loan eligibility calculator, higher loan amounts, and other lucrative housing loan features that they can avail of from the banks that employ them.

Obtaining a customized home loan becomes easier for employees associated with that very financial institution with favorable terms and conditions. By meeting basic eligibility criteria, bank employees can get attractive housing loan interest and a substantial loan amount with easy repayment tenures. Their association with the bank makes borrowing an easy and stress-free task.

How can bank employees obtain a customized loan

Benefits of faster approvals

Bank employees can avail of customized home loans that are attractive and easier to apply for. Once the employee has narrowed down on a property they are interested in, they can opt for the customized home loan process that their banks offer them and fulfill their dream of owning a home. Each bank or NBFC has made this loan application and loan disbursal process seamless and flexible for the employees. The financial institution will have a dedicated loan type with appealing terms and conditions. Employees can avail of these substantial loans via user-friendly formats, either online or offline. Usually, these loans get disbursed and credited to the employee's account within 72 hours.

Benefits of simple home loan eligibility criteria and ease of documentation

The bank or NBFC, the employee, work for has already done a basic verification check on the employee while hiring them. These verified employees need to produce minimal documentation at the time of loan application. The banks already have access to a plethora of information, including but not limited to the name, address, identity verification, Aadhar card, PAN card, and bank account details. They are also aware of the salary being credited to the employee's account, which is the income proof needed when anyone applies for a home loan. Based on the employee's income, they can also check the amount they are entitled to, on the home loan eligibility calculator.

Having prior access to the employee's data and documents collected at the time of hiring, this part of the procedure to becomes smooth. At most, the employee applying for a home loan will have to fill in an application form and provide some additional documents like bank statements to evaluate any ongoing loans. The bulk of the document checklist and eligibility criteria was already met when the employee was interviewed to be hired. Whatever little may be required (photographs, bank account statements, property specifications, etc.) won't be too much. This application step becomes smoother and hassle-free for employees due to their existing association with the financial institution.

The benefit of a nominal home loan Interest rate

The interest rate for a home loan offered to a bank employee is almost always lower than what is offered to the general public. The exact interest rate offered will differ based on the bank they are working at. A nominal home loan interest rate coupled with a flexible repayment tenor is everything a borrower needs when applying for loans of such substantial amounts.

Benefit of a higher loan amount

Home loans for bank employees are significantly higher than they are for other applicants. If a bank employee is earning the same as another applicant, keeping other factors similar, the loan amount is approved for the bank employee would be higher. This is a benefit the bank employee gets for their association with the financial institution. The home loan can vary anywhere from Rs.30 lakhs to Rs.10 crore, depending on the employee's salary and other eligibility criteria. With access to financial tools such as the home loan eligibility calculator and the home loan EMI calculator, bank employees are empowered to plan their repayment schedule in the most economically viable way.

Benefits of flexibility in terms of repayment

The terms and conditions for a home loan for bank employees are overall more favorable. Concerning the repayment tenure, housing loans for bank employees are often longer and can extend up to 25 years, making the installment payment easier on the pocket. When someone has more time to repay the Equated Monthly Instalments, it does not pinch the pocket, making the home loan more affordable.

Apart from easy and affordable monthly repayment, the banks allow them to get debt-free faster by waiving foreclosure or prepayment charges. This kind of flexibility in repayment helps bank employees to clear off their debts sooner or in parts as and when they get surplus funds to repay. Easy repayment terms help employees get debt-free faster and offer comfort in repayment. Knowing that one can get rid of a financial burden on their own time, free of cost, offers a lot of relief to the borrower.

Overall convenience in the home loan borrowing procedure

A bank employee, by virtue of being in the very same premise that has approved the loan, gets access to multiple things with ease. A loan account needs to be accessed at numerous intervals during its tenure. It could be for income tax purposes, to keep track of the deductions or any other reason – as an employee, access to track loan-related details is easier. Any discrepancy that needs to be addressed can also be looked into instantly.

A home loan is the best way to fulfill a future homeowner's dream and as a bank employee, this becomes a tad bit favorable. Check out your bank website or just walk up to the department that handles home loans and understand what it means for you as an employee. The access to the above mentioned benefits will remain until the loan is serviced, which means a change in job won't impact the terms and conditions. 

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Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.

Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.