In India, there are many financial institutions which offer Home Loans for women. Over the years, there has been an increase in the availability of customised Home Loan schemes catering specifically to women.
A Home Loan for women offers benefits such as simplified eligibility criteria and low interest home loans, which have been instrumental in empowering women to invest in property and attain home ownership. It is worth exploring the reasons behind the popularity of customised Home Loans for women and the advantages women borrowers can avail of under existing laws.
How can women homeowners get the cheapest rates?
As women continue to make strides in financial independence, there has been a noticeable increase in women borrowers for Home Loans. Women are statistically considered to be better loan borrowers as they have fewer defaults on loans. This confidence is also reflected in the interest rates offered to them, which are typically lower than the market rate.
Although the difference in interest rates may be slight, such as 0.05% to 0.1%, it can significantly impact the monthly EMI and make the repayment process more manageable and less stressful for women borrowers. These customised Home Loan schemes can empower women to invest in property and become homeowners. It is a positive step towards financial inclusion and gender equality.
A woman can also get benefits from government schemes. For instance, by taking pradhan mantri awas yojana benefits (PMAY), which requires co-ownership and offers an interest subsidy of up to Rs 2.67 lakh, women can move closer to financial independence and purchase their own homes. In addition, women applicants are given preference under the scheme, leading to a 6% increase in the number of women applying for Home Loans in India.
Eligibility criteria of Home Loan for Women
To be eligible for a Home Loan for women, a candidate must be:
- The applicant should be between 18 to 70 years of age
- They must be an Indian citizen
- The applicant can be salaried or self-employed with a net annual income that meets the lender’s terms and conditions.
- The applicant must have a permanent or rented residence where they have lived for at least a year.
- Ideally, a credit score of 750 or above is preferred, although this may vary among different lenders.
You may get asked for additional documents with some banks for Housing Loans. Ensure you have the necessary documentation to avoid any delays.
Access high amounts with simple eligibility criteria
Lenders now offer higher loan amounts, ranging from Rs 30 lakh to Rs 5 Crore or more, to attract women borrowers who want to purchase a home. Along with this, the eligibility criteria for obtaining a Home loan for women have been simplified, making it easier for women to apply.
For instance, many lenders and NBFCs that provide Home Loans for Women have specific eligibility requirements, such as being an Indian citizen between the ages of 18 and 70 with a minimum of 3 years of work experience.
In addition, women borrowers can benefit from a flexible repayment tenor of up to 30 years, which helps to lower their EMIs and reduce financial pressure. This can allow them to manage other financial commitments while repaying their Home Loan. Moreover, no charges are imposed on making part-prepayments or foreclosing the Home Loan for women, providing women borrowers with added convenience and flexibility.
Read: Top 5 Factors That Affect Home Loan Interest Rate
Tax benefits for women house buyers
When a woman registers a house in her name, the stamp duty charges may be lowered by 1-2% compared to the charges levied on male buyers by most state governments. While this percentage may seem nominal, it can lead to significant savings when considering the total cost of the property and calculating the 4% to 5% stamp duty. As a woman borrower, you can also benefit from tax deductions by claiming up to Rs 1.5 lakh on principal and interest repayment for a self-occupied home.
Conclusion
By sharing a few basic details with a lender, you can check out your pre-approved offer, which not only simplifies the financing process but also helps you save time. You can also check online platforms to find and compare the best interest rates.
