Introduction
SignDesk is excited to announce its recent collaboration with ART Housing Finance (India) Limited, a dynamic player in the home finance industry. This collaboration has transformed the way home loan disbursements are managed, simplifying the process and enhancing financial accessibility for a diverse customer base.
This collaboration promises to unlock new possibilities in the realm of housing finance, contributing to the growth and prosperity of India’s real estate sector and, more importantly, ensuring that home ownership is accessible to a broader demographic.
Owning a home is a dream for many, and ART Housing Finance has been on a mission to make this dream a reality, especially for those in medium and low-income groups in suburban and urban India.
However, the path to homeownership is frequently plagued with difficulties, such as loan disbursement delays. Underwriting credit and processing financial data can be significantly more difficult in low-tier areas, which frequently lack the physical infrastructure and resources that tend to be more easily available in urban or higher-tier locations.
To overcome these hurdles and foster financial inclusion, it was essential for the company to introduce innovative financial solutions to extend financial services in low-tier areas. Recognizing the need for a more efficient and customer-centric approach, ART Housing Finance has partnered with SignDesk to introduce quick online loan disbursement through e-stamp and e-signature solutions.
SignDesk’s expertise in digital solutions has paved the way for a streamlined and efficient loan disbursal process. Borrowers are now able to enjoy a convenient and faster loan application and approval process thanks to the integration of SignDesk’s digital stamping and e-signature technology.
Challenges in Loan Disbursement for ART Housing Finance
Prior to the implementation of SignDesk’s solutions, ART Housing Finance struggled with lengthy processing times. The firm took several days to disburse loans with its existing loan processing workflow.
Borrowers had to physically sign each page of the loan agreement and accompanying documentation, which caused inconveniences and extended the time required for loan disbursal.
High operational expenses were another challenge, driven by the old, paper-based loan disbursement method, which involved costs for stamp paper procurement, document printing, shipping, storage, and staff required for document management.
Traditional wet signatures were prone to errors and anomalies, impeding operating efficiency and raising questions about document authenticity and integrity. In addition, obstacles in collecting signatures from several co-applicants caused considerable delays, complicated the loan approval timeline, and produced an inconvenient experience for customers with co-applicants.
ART Housing Finance saw the critical need to digitize its loan kit and optimize its operations in order to address these issues. To lead this transformation, the firm collaborated with SignDesk. SignDesk’s solutions played a pivotal role in reshaping their approach of disbursing home loans.
The Future of Loan Disbursement: Embracing E-Signatures & Digital Stamping
ART Housing Finance implemented digital stamping and e-signatures as part of their strategy to streamline their loan disbursal process. By adopting digital stamping, they were able to eliminate the need for physical stamp paper, reducing costs and processing times.
E-signatures replaced the traditional wet signatures, ensuring secure and efficient document signing, and also mitigating the risks associated with signature mismatches and document authenticity.
SignDesk assisted ART Housing Finance in transitioning from paper-based loan kits to digital alternatives. Loan documents were electronically stamped, which ensured compliance with stamp duty regulations while removing the risks associated with traditional stamping.
This also lowered the amount of time and resources needed for stamping. Borrowers were able to electronically sign loan agreements and accompanying documents using SignDesk’s Aadhaar e-signature technology which enabled multiple signer capability.
This eliminated the need for traditional, time-consuming wet signatures and signature mismatch issues and introduced security features like timestamps and audit trails.
These solutions were critical in improving the efficiency, security, and ease of their loan distribution procedures, benefiting both the organization and its customers.
ART Housing Finance’s Revamped Loan Disbursement Process
Through the integration of digital solutions the company redefined its procedures, streamlining the way it facilitates home loans for its customers.
- Pre-Order Stamp Papers:Â The company placed pre-orders to expedite loan disbursement.
- Upload or Create Document: Loan agreements were uploaded or created using SignDesk’s digital templates.
- Enter Details:Â Key details such as the names of applicants, stamp state, stamp paper denominations, etc., were entered or auto-filled.
- Make the Stamp Duty Payment: The stamp duty payment was made online in real-time using a digital wallet.
- E-Stamping: The agreement was merged with relevant stamp paper, and a stamping legend was electronically printed on it.
- E-Signature Initiation: Once e-stamping was complete, applicants proceeded to e-sign the agreement.
- Enter OTP and Esign:Â Applicants received an OTP on their Aadhaar-registered mobile number, which was entered to sign the agreement electronically.
- Download Stamped & Signed Agreement: The final document was made available for download to all stakeholders.
Before vs. After Loan Digitization: A Transformative Journey
Before implementing digital solutions, ART Housing Finance faced numerous challenges that hindered efficiency and customer satisfaction. The loan disbursal process was marked by delays, high operational costs, and cumbersome paperwork. Applicants had to physically sign multiple pages, and signature mismatches and co-applicant coordination issues were common.
However, after partnering with SignDesk and embracing digital stamping and e-signatures, the company experienced a remarkable transformation:
- Quicker loan approvals and disbursements, improving customer satisfaction.
- Substantial reduction in operating costs due to streamlined processes and reduced paperwork.
- Simplified signing process with e-signatures, eliminating the need for physical signatures on each page.
- Improved security and accuracy, with signature mismatches effectively eliminated.
- Streamlined coordination for multiple co-applicant signatures, ensuring timely processing.
Loan Kit Digitization With SignDesk- The Impact
By using SignDesk’s eStamping procedure, the organization was able to exert better control over its loan sanction process. After loan agreements were eStamped, they could be immediately sent for E-Signatures, and applicants could sign them using their smartphones from anywhere.
The adoption of digital stamping and e-signatures not only expedited the company’s lending operations, but also enhanced its commitment to embracing cutting-edge technology and innovation to improve customer service.
Reduced operating expenses, faster turnaround times, greater audit efficiency, and a smoother application procedure for borrowers demonstrated the transformative impact.
The journey of digital transformation of ART Housing Finance demonstrates the importance of technology in rethinking loan disbursement.
Do you want to learn more about the impact? Download the case study to learn more about how ART Housing Finance used SignDesk to streamline its loan disbursement process.
