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6 Reasons Why Home Loans are Better for Women

2021-06-11
3 Min Read
Author - Sanyam Jain
6 Reasons Why Home Loans are Better for Women
383 views

With change being the only constant, there are unsurprisingly numerous changes that take place each day. With the ever-increasing financial independence of women, more and more female borrowers are stepping up for home loans. With this vital step towards financial planning and towards securing their futures, women are moving towards having their own home, and with it, the proud feeling of owning it.

To make it a bit easier for women and motivate them to take the first step towards buying a home, various lending institutions are providing special home loans to women at low interest rates. In addition, women can also avail benefits from special schemes launched by the government, can avail tax deductions and are also given preference over other borrowers.

Before we talk about the various benefits that women can avail via home loans, let us look at the eligibility criteria and the documents required:

Eligibility Criteria:

Before applying for any kind of loan, make sure that you are aware of the eligibility criteria which may vary from one lender to another.

(i) To get a home loan, a woman must be of minimum 18 years and maximum 70 years.

(ii)The applicant should either be a resident of India or a Non-Resident of India (NRI).

(iii)A salaried individual or a self-employed individual can apply for a home loan.

(iv) Along with this, the applicant must have a permanent residential address.

(v) A credit score of 750 and above, although this may vary from bank to bank.

(vi) The female applicant should be the primary borrower or co-borrower of the property.

Documents Required for Women Home Loan Borrowers

  • Application Form - Signed Application form with photo
  • Identity Proof - PAN card, Passport, Driving License, Aadhaar Card, Voter id, Govt issued i-card.
  • Address Proof - Any residence proof like Passport, Driving License, Election ID card, Electricity/ Telephone/ Mobile bill/ Bank statement (not more than 3 months old) etc.
  • Income Proof - Salary slip, bank statement of 6 months, Form 16
  • Documents Related to Property: Past title chain - Conveyance deed, Sales deed, Allotment letter, Possession letter, Latest property tax receipt, Copy of approved plan for construction/ extension.

Now that we know the eligibility and the documents required, it is now time to understand what are the benefits of taking a home loan for a woman.

6 benefits of taking a Home Loan for Women in India are:

  • Lower interest rate: Women are believed to be more reliable borrowers by most lenders and hence lenders are willing to offer lower interest rates to women borrowers. Even though the difference in rates may be as small as 0.05% to 0.1%, but in the long run, this small percentage can save you a lot of money as the tenure of home loan is very long, upto 30 years.
  • Simple eligibility criteria: The eligibility criteria for women is much less stringent as compared to that of male borrowers. Lenders usually are a bit more lenient with female borrowers and even with a little lower credit score, women are allowed to borrow the required amount.
  • Longer repayment tenors: Women are provided with longer tenures of upto 30 years for repayment of loan. This reduces the EMIs, hence reducing the financial pressure.
  • Lower stamp duty charges: In case of a woman borrower, stamp duty charges are 1%-2% lower. Considering the value of a property, this small looking 1% or 2% becomes more than a considerable amount.
  • Tax Benefits: Home loan tax deductions of upto Rs 3.5 lakhs is available to taxpaying women borrowers. Section 24(b) of the Income Tax Act, 1961 allows a tax deduction of upto Rs. 2 lakhs on home loan interest to the borrowers. Also, under section  80C of the same act, borrowers can claim tax deductions of upto Rs 1.5 lakhs on the repayment of their home loan. Apart from these, the women borrowers are entitled to several other tax deductions on principal paid, stamp duty, and interest paid under sections 80C and 24(b).
  • Schemes like PMAY and CLSS: The government has started various schemes for women borrowers so that they can benefit from taking home loans. PMAY(The Pradhan Mantri Awas Yojana) states that the co-ownership of the property is mandatory. It offers a subsidy on interest amount of upto Rs. 2.67 lakhs. This scheme gives preference to women borrowers and since its launch, it has led to a 6% rise in the number of women applying for a home loan in India. In case a woman is the only applicant, then under the credit-linked subsidy scheme (CLSS), she can receive a subsidy of 3 to 4% on her interest rate.

A number of prime lending institutions across the country are offering Home Loans to women, providing various benefits and subsidies. Women can take a home loan for amounts as low as Rs. 10 lakhs and as high as Rs 10 crores, depending upon the eligibility and the lender. This home loan is available at interest rates as low as 6.65% and along with that, the repayment tenure is also made very flexible. It can be extended from a year to upto 30 years.

Best Home Loan Offers for Women

Banks

Interest Rate

Processing Fee

Bank of Baroda

6.75% p.a

Up to 0.50%

SBI

6.70% p.a

0.35% Max Rs. 10,000

HDFC

6.75% p.a.

0.50%, Min ₹ 3,000, Max ₹ 10,000

ICICI Bank

6.75% p.a

0.25%, Min ₹ 3,000, Max ₹ 5,000

LIC HFL Home Loan

6.90% p.a

Min ₹ 10,000, Max ₹ 15,000

To check and compare the interest rates offered by various banks, click here:

https://www.myloancare.in/home-loan-interest-rates/

Getting a Home Loan was never easier, and for a female borrower, it was never more beneficial. With the number of benefits that a woman can avail of, it seems to be the best time to get a Home Loan. So, if you are looking to have a home of your own, apply for a Home Loan today.

About Author

Sanyam Jain
Highly motivated and utterly skilled, a young and zealous writer trying to follow his passion for the love of English language.An actor, a singer and above all a writer, has written over 500 poems till date and wishes to publish his own works soon. With an experience of almost three years in content writing, Sanyam is working as an integral part of the content team at MyLoanCare.

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