With women becoming financially independent, there has been a surge in the number of women applicants applying for home loans from banks. This has, in turn, contributed to lenders offering numerous opportunities and schemes to women who dream of having their own home. The benefits offered range from lowered interest rates to easy eligibility requirements.
As the home loan benefits offered are multi-fold, more and more women are trying to benefit from the options available. Here are some of the advantages of applying for a home loan if you’re a woman.
Lenders are of the opinion that women are more reliable as borrowers. To encourage more women to invest in various assets, financial institutions offer special interest rates on home loans for women. This makes it quite affordable for them to borrow and repay the principal amount. Though the subsidized rate may be lower by just 0.05 to 0.1%, it would have a significant impact on the EMI amount.
Women can avail a home loan in the range from ₹30 lakh to ₹3.5 crores for purchasing a home of their choice. More and more lenders are increasing sanctions to attract women borrowers. This, along with the simple eligibility criteria, makes it easier to apply for a home loan. Any woman in the age group of 23-58 years and with a work experience of at least 3 years is eligible for a home loan.
A woman can repay a home loan at ease as the repayment tenure is as high as 25 years. This further gives them a chance to repay the amount in the form of lower EMIs thereby reducing the pressure on finances. Moreover, there are no charges levied on part-prepayments or foreclosures.
If a property has been registered in the name of a woman, then the stamp duty charged is lower by 1 to 2% than what is charged to a male borrower. A woman borrower can save a substantial amount over tax deductions. Around ₹1.5 lakh – ₹2 lakh can be saved on interest repayment.
Women have the opportunity to apply for loan as a co-borrower. The combined income of borrowers would translate to more flexibility and a higher chance of loan eligibility. Women enjoy tax deductions too on repayments. The tax benefit enjoyed by a co-borrower is directly proportional to their repayment contribution.
The PMAY home loan scheme makes co-ownership mandatory and offers an interest subsidy of up to ₹2.67 lakh. Preference is offered under the scheme to women applicants. This can tremendously benefit individuals from economically weaker sections and also low-income groups who dream of owning their own home. Single women and widows can benefit immensely by applying under the PMAY scheme.
Women borrowers have a plethora of options and are offered various incentives while borrowing a home loan from financial institutions. Applying as a co-borrower can also prove to be beneficial. Moreover, schemes launched by the government such as PMAY encourage women to invest and realize their dreams of owning a home.