AI is rewiring home lending, from 40-day approvals to real-time decisions

By Amit Prakash, Co-founder & CBO, Urban Money

For many years, obtaining home loans has been associated with strict qualification criteria, lengthy waiting times, and multiple document submissions. Home loan approvals that previously required up to 40 stressful days are now finalised within hours. This shift is not only due to faster documentation processing or larger teams, but also the intervention of Artificial Intelligence (AI), which has altered the processes. The reliance on manual underwriting, extensive paperwork, and uniform loan products commonly resulted in hold-ups and mismatches.

These issues were particularly pronounced for self-employed individuals, freelancers, or first-time homebuyers with weak or no credit records. Even borrowers who were deemed creditworthy often faced rejection merely because they did not conform to conventional lending standards. As the demand for housing in India grows beyond major cities, borrowers’ expectations are changing. In fact, AI is subtly revolutionising the way ...