UOB - The first bank in Singapore to offer on the spot home loan approval service
United Overseas Bank Limited (UOB) today introduced anew service where genuine home buyers can receive an instant decision on their homeloan application.
This is the first time in Singapore that home buyers visiting a showflat can receive anapproval on the spot for their home loan application instead of an Approval-In-Principle.UOB%E2%80%99s Split-Second Home Loan approval service gives customers comfort and certaintyto make a decision on their property purchase, knowing that financing is approved.
Home loan applications and approvals that could take up to 60 minutes to process arenow done in a split-secondas UOB has used some of the latest technologies, andstreamlined and automated processes for faster credit evaluation and approval.
Mr. Eddie Khoo, Managing Director of UOB%E2%80%99s Group Personal Financial Services said formany customers, purchasing property is one of the biggest financial decisions they willmake in their lifetime.
“When someone decides to buy a property, they want to know if they can afford theproperty, how much they will be able to borrow from their bank and if the bank will grantthem that loan. Our instant approval provides answers to these questions on the spot. Itgives suitable candidates who are serious about buying their ideal piece of property thepeace of mind they need,” Mr. Khoo said.
Even though the processing time is much faster, UOB observes the same rigour inassessing the suitability of the applicant for the home loan. The loan applicant must stillpass the risk and credit reviews before the approval will be given by UOB.
The approved loan is valid for a period of seven days. This allows home buyers ampletime to consider whether the loan is suitable for them and make an informed decision onthe purchase, as well as prepare the documents required to support the loan application.
This new service is available at more than 70 showflatsisland-wide.
UOB has deployed more than 100 mortgage bankers to designated showflats to helphome buyers understand the long-term financial implications of purchasing a propertyand the financing options available to them.
How the service works
Each mortgage banker is armed with an iPad which is connected to the Bank%E2%80%99s creditevaluation system. That system is linked to the Credit Bureau (Singapore).
The loan application process is fully automated which makes the entire process simple,efficient and convenient for the home buyer.
- The home buyer%E2%80%99s personal and financial details are entered via the iPad directly into UOB%E2%80%99s loan approval system based on the home buyer%E2%80%99s verbal declarations. This makes it easier for home buyers as the documents supporting the loan application need only be submitted after they receive confirmation that they are eligible for a loan.
- The information is processed at UOB%E2%80%99s head office via an automated approval system which assesses certain criteria such as the home buyer%E2%80%99s credit profile against the Credit Bureau%E2%80%99s records and UOB%E2%80%99s database and existing loan details and collateral data. The decision on the home buyer%E2%80%99s eligibility for a loan is determined instantly.
- A home buyer eligible for a loan receives confirmation of the loan amount, tenor, monthly repayment payable and interest rate package.
- A letter of offer may then be collected at any UOB branch. The home buyer has seven days to consider the loan and meet the conditions in the letter of offer including submitting the necessary documents to match the verbal information provided during the loan application. These documents must be reviewed by UOB.
Applicants who do not qualify for the instant approval service can apply for a home loan via the normal process.
UOB plans to extend the service to its regional subsidiaries subject to regulatory approvals. UOB%E2%80%99s Split-Second Home Loan approval service is available for new and refinancing of private property home loans, HDB home loans, Commercial Property Loans and Property Equity Financing. For more information, prospective home buyers can visit www.uob.com.sg/loans.About United Overseas Bank
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