Paperless home loans a reality soon

The Ministry of Electronics and Information Technology (MeitY) has made it possible to digitize mortgage and other property documents for several new types of loans, which will give a boost to the digitization of home loans.

NESL provides a digital documentation execution service for banks that enables contracts to be made electronically. DDE is a robust, fully automated digital contract execution platform from National E-Governance Services Ltd (NeSL). As an advanced paperless contracting solution, DDE digitizes the end-to-end loan process and helps Financial Institutions instantly execute digital contracts within a short span of time and at significantly lower administrative costs.

1. Fastest Turnaround Time: Loan disbursement turnaround time reduced from a manual-driven process of 15 days to a mere 7 minutes!

2. Integrated e-Stamping:  Online & real-time generation of stamp duty certificate inscribed with a unique stamp duty number from Stockholding Corporation of India Ltd. (SHCIL) or the State Inspector General of Registration (IGR).

3. Inbuilt e-Sign Facility:  Facilitates Aadhaar-based e-Sign services for instant execution of various legal documents.

4. Easy Integration: Robust APIs ensure easy integration with lenders’ existing online loan systems.

5. Fully Secure & Legally Admissible: A legal process validation from NeSL IU, electronic stamping within NeSL’s web environment, and anytime verification of contract details on SHCIL/IGR websites, makes the digital contracts tamperproof and non-repudiable. Furthermore, Financial Institutions can quickly download the contract along with a section 65B certificate from NeSL IU. (Points No. 1 to 5 are sourced from NeSL website)

If stamp & registration laws of State Governments are suitably amended for digital documentation, that may push fully online property transactions in the future. Registration, as well as e-execution of agreements, would become easier. Further, Digital title deeds/sale agreements can be maintained as valid land records

National E-governance Services (NESL) MD & CEO Debajyoti Ray Chaudhuri, speaking at the Indian Banks Association’s banking technology conference in Mumbai on Saturday, said: “Recently, MeitY has issued a notification which allows home loans to be brought under the digital documentation category”. That’s still being worked on, but now it’s a distinct possibility, he said. He further added that “With vendor and supplier agreements being brought in, the possibilities are endless. I can visualise a situation when any contract can be available in Demat form”.