Women today are becoming more independent and do not need financial support from their fathers or spouses. In recent times home loan for women have started taking more home loans in their names since the interest rates provided to a woman-held household is lesser than that of a man. Lower interest rates have also encouraged a lot of women today to invest in their property and simultaneously, government schemes and other policies have also led women to step up in the market. Here’s how women today can avail of a simple and easy home loan and some benefits that they get from it:
1. Women pay less interest rate: Today, lenders prefer women to be reliable loan borrowers which is why they prefer providing a lesser interest rate to women. If the market rate is fixed to 6-7% then a woman will pay a 0.5-1% lesser interest rate. It also impacts their EMI and frees their mind of the burden of paying more.
2. Women can get a higher amount of loan: Several lenders prefer providing women with property loans from 30 lakh up to 5 crores. All they require from women is to be between 20-60 years of age and have a working experience of at least 3 years.
3. Women can use PMAY: Women in India have started to apply for home loans under Pradhan Mantri Awas Yojna and recently, a shift of about 6% has been noticed for the same. Under PMAY, women get an interest subsidy of up to Rs 2.67 Lakh.
4. Women Pay lower Stamp Duty: When a woman registers a house in her name, she is then liable to pay 1%-2% lower stamp duty than men. It may sound that 1%-2% is a nominal amount but when compared to the whole amount of the property, it helps women save a lot in their pockets. Women can also save on tax deductions and the amount they can save may vary between Rs 1.5-2 lakhs on the principal amount and interest repayment.
5. Women get longer tenor repayment options: When a woman buys a property, she is liable to extend her repayment tenor up to 30 years. This way they can pay lower EMIs and reduce financial pressure.
Eligibility criteria for women buyers:
Certain criteria are set for women buyers. Every lender goes through a set of instructions and a woman must have these before investing in any kind of property. The set of criteria includes:
- She should be between 20-60 years of age
- She should be a citizen of India
- Her monthly income should be Rs 15,000 or above
- Her credit score should be 650 or above
- She should have a proven work experience of at least 3 years
Above mentioned criteria is just a set of instructions that every lender goes through. Calculate your home loan eligibility here.
Know that the above-mentioned is a gist and a set of options available to women buyers in India. Amounts may vary. If you involve your wife as a co-borrower or as the main applicant, it may help you in tax deduction and stamp duty deduction while also taking off the burden of EMIs.
