Owning a home through sheer hard work is a massive milestone for many people, including the independent ladies of today. Many women these days dream of buying a house of their own. While some are fortunate enough to gather the money to buy their home, some may need financial assistance to cover building estimates and get closer to their milestone. The assistance being referred to here is nothing but a house loan. Many banks and non-banking financial institutions (NBFCs) have made it easy to apply for a home loan. Moreover, if a woman takes up that loan, these institutions provide various benefits. Following are the features and benefits of getting a house loan for ladies.
Benefits and features of taking a home loan for women
1) Flexibility in home loan repayment for ladies
Many financial institutions or banks allow women to customize their home loan repayment. Most home loans come with a repayment tenure of up to 25 years. If the borrower is a woman, many financial institutions provide the option for up to 30 years of repayment tenure or until the borrower turns 70 years old, whichever is earlier. They also provide legal and technical counsel to help choose the right plan. This option can help ease the burden from the shoulders of the borrower by a significant amount, as a longer repayment tenure means lesser EMIs. And lesser EMIs amount automatically implies being able to manage the loan better with the flexibility of spending on other necessities during the repayment tenure.
2) Increased chances of getting a higher borrowing amount
More straightforward home loan eligibility criteria for women sometimes allow them to borrow a higher amount. Lenders have been increasing their sanctions to attract more women borrowers. It can help them get a loan starting from as high as 35 lakhs to up to 5 crores. Women can get the best home loan amounts with the various schemes these financial institutions offer.
3) Women get reduced interest rates on housing loans.
Most lenders in India offer women a 0.05% to 1% reduction in home loan interest rates. Considering the long repayment duration of 15-30 years, a drop of as small as 0.5% can lead to significant savings in the long run. Women are believed to be more reliable borrowers, and the lenders want to encourage them to own assets like property simultaneously, which is why they have come up with schemes including reducing interest rates for women.
4) Income tax benefits on home loans for women
Women can avail of tax benefits on home loans even when applying for joint loans with their husbands. They are eligible to get Income Tax benefits on both the interest paid for the home loan and the principal amount of the loan. While both male and female borrowers can avail of tax benefits on housing loans, the amount of deduction permitted to male borrowers exceeds INR 1,50,000. In contrast, female borrowers can get a deduction of up to INR 2,00,000.
5) Higher rate of home loan approval
The chances of getting a house loan approved are higher if the borrower is a woman. The government has launched a special scheme known as the Pradhan Mantri Awas Yojna to help make provisions to provide people with a “pakka” or concrete house. Although the scheme was launched to help the economically weaker sections, such as the low to medium-income groups, it also provides special preferences to women, especially single working women and widows. With the help of this scheme, a woman applying for a loan as a principal or joint applicant can get the loan processed faster.
6) Lower stamp duty on home loans
If the property is registered in a woman’s name, she will be required to pay up to 1-2% lower stamp duties than a male buyer. Most state governments allow lower stamp duties for women. However, it may seem like a nominal amount, considering the total cost of the property, even a drop of 1-2% in stamp duty can help you save a considerable amount. If you purchase a house of INR 70,00,000, 1% of it would be 70,000. This money can be used to pay off EMIs later or be invested elsewhere.
7) Extra offers on home loans for women
Women can get the cheapest home loan with the proper research along with availing of other offers. Various home loan lenders provide special offers to women, such as holiday packages, gold coins, etc.
Eligibility criteria to apply for a home loan for women
The criteria include the following things:
- The applicant must be between 18 years to 70 years of age.
- The applicant must be a resident of India, an NRI (Non-Resident of India), or a Person of Indian Origin
- The applicant should be self-employed or a salaried individual.
- The applicant should meet the Net Annual Income criteria of the lender
- A Minimum CIBIL score of 750 or higher.
Documents required to apply for a housing loan.
- Proof of Identity – Any government-approved document with your photograph, such as your Aadhaar card, driving license, passport, etc.
- Proof of residence – Any government-approved document with your current address, such as your electricity bill, passport, Aadhaar card.
- Three passport-size photographs
- Proof of Income – Bank statements of the last 6 months, salary slips of the previous 3 months or ITR
Gone are the days when women waited for a man to come and fulfill their dreams. Getting a home of your own might seem a big step, but it is attainable. Women can get an instant home loan to fulfill this dream and various benefits on that loan. Starting from getting higher amounts of loans to getting them on lower interest rates and benefitting from schemes like the Pradhan Mantri Awas Yojna. They should make the most out of these fantastic offers. Even if they are not taking up the loan as a primary borrower, being a co-borrower on a home loan can make them eligible to avail of the benefits.