Home Loans for Women: All You Need to Know

 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.

EMI Calculator for Housing Loan: Features and How To Use It?

 

Are you looking to get a reasonable estimate of your monthly EMI on your Home Loan?

As while planning to buy a house, one of the most critical factors is to decide how much loan must be availed. Using an EMI calculator is the easiest way to determine your monthly payouts and balance your budget accordingly.

A home loan EMI is the repayment of the loan amount which you will need to pay with interest during the given tenure. It is a simple loan calculation tool that helps the user to calculate EMI and view the payment schedule quickly. 

Shubham Housing Finance Development Company has a unique EMI Calculator which allows you to calculate your loan tenure and monthly instalments to be paid towards the home loan repayment.

Why should you use an online EMI home loan calculator?

Borrowers who are not comfortable with complicated calculations, find it easier to estimate house loan EMI by using EMI calculators as it gives correct results and allows you to compare EMI on different home loan schemes instantly.

Here, let us take a look at some of the features of a home loan calculator:

1. Comparative analysis: 

You can compare the loan schemes provided by various banks and Housing Finance Companies. If you are looking for lower EMI and attractive interest rates, you can consider Shubham Housing Finance as it helps you to repay your loan comfortably.

If you have already taken a home loan from any other financial institution and are unhappy with the service or wish to reduce the burden, you can apply for Shubham Home Loan Balance Transfer.

2.Repayment scenarios: 

A home loan calculator may be used by a borrower to get the results by entering information such as monthly payments, interest rates, and loan tenure based on their repayment schedules.

3.Customized calculation: 

When you calculate the loan EMI, you know the particular amount, tenure, and interest rate, you have to pay when you borrow a loan. It helps you plan your finances before taking the loan so that your monthly budget does not take a hit. A borrower can also get customized results to reach the most suitable EMI according to their requirements.

4.Anytime Access: 

The EMI calculator is easy and convenient to use as it makes accurate calculations in less time. It can be accessed anytime and anywhere. You can use the calculator any number of times as per your convenience. You do not have to visit the branch or get involved with figuring out complex mathematical calculations; instead, you can access the Shubham online EMI calculator.

How to use a home loan calculator?

A home loan calculator helps you know the amount of EMIs that you will need to pay towards your Home Loan and helps make an informed decision. 

You can use the EMI calculator in three simple steps:

- You need to enter the loan amount you wish to take

- Then enter the loan tenure

- Enter the rate of interest

Using an EMI calculator, you have the flexibility to decide the amount that you are comfortable to pay off monthly and the duration for which you wish to make the payments depending upon your income and financial stability. With an affordable interest rate and flexible repayment tenure, Shubham Housing Finance ensures a comfortable home loan EMI for you. 

If you have any doubts related to your Home Loan EMI, you can reach out to us at customercare@shubham.co, or you can write your thoughts in the comment section below!

How to Reduce Home Loan EMI with the PMAY?

The biggest for most Indians is to own a house. As owning a house is a matter of pride for some, while to others gives financial security and mental peace. Thus the Government of India has launched a housing scheme known as Pradhan Mantri Awas Yojana (PMAY) to bring affordable homes for the low-income groups.

The scheme is mainly for the economically weaker sections (EWS) of the society, low middle-income group (LIG), and middle-income group (MIG) individuals, and the subsidy available is termed as "Credit- Linked Subsidy Scheme."

The Government of India takes into account the whole family’s income while deciding the subsidy to which an applicant is entitled. Moreover, the subsidy rate provided to applicants is often calculated according to the economic category of which they are a part of.

Now, you must be thinking about whether you are eligible?

How can you avail this subsidy?

How should an individual apply for the scheme?

If yes, here is all that you need to know about the scheme and how you can reduce Home Loan EMI with the PMAY.

Eligibility Criteria: 

The first thing you should check is the eligibility criteria. All home loans sanctioned should be eligible for availing the interest subsidy.

-People who fall in the annual income between 3 lakhs to 6 lakhs are eligible to avail the subsidy of 6.50%

-Individuals with a yearly income of 12 lakhs and 18 lakhs can avail a subsidy of 3% to 4% on their interest rates.

-To avail this scheme, families with a husband, wife, and unmarried children are eligible. It involves constructing a new house, or obtaining a newly built home, or even repurchasing an existing home. Even young unmarried men and women may apply for this PMAY CLSS subsidy.

Interest & EMI of the home loans under the PMAY

If you're applying for an interest subsidy under PMAY, your lender has to submit the application to the National Housing Bank.

-The maximum tenure of the housing loans under the PMAY scheme is 20 years.

-Once you are eligible for the subsidy, then the National Housing Bank will pay the entire subsidy in one go to your lender. This further reduces your EMI burden.

More Preferences Are Given To Women

As per the PMAY scheme, women are given more preference than men. Single, working women, widows, differently-abled women, transgender, and people belonging to scheduled castes and tribes are given first preference.

How to apply for a home loan under this scheme:

Borrowers should express their desire to avail the subsidy. The lenders then get an agreement signed from the customer, ensuring that this is only home under their name. To avail this subsidy, To make use of this subsidy, no additional processing fee is charged.

The borrower may then either choose for reduced EMIs or, repay the loan easily with the existing EMI.

To increase the implementation of this subsidy, several housing financial banks such as Shubham Housing Finance, Aadhaar Housing Finance, and non-banking financial institutions have been chosen as primary lending institutions.

Hope this article is helpful for you. If you have any doubts, you can reach us at any time. We are here to help you!

Know How to check if your Housing Loan EMI is calculated correctly

Most people make use of loans to buy a car, purchase a home, for higher education or other personal reasons. Loans also help us achieve essential life goals even with increasing inflation.

Equated monthly installments or EMIs is a part of the repayment of the loan. It is a fixed amount payable each calendar month by a borrower to a lender on a defined date.

It is part of the equally divided monthly payment made to clear an outstanding debt within a defined period of time.

The EMI is composed of two elements: the principal and the interest. The principal is charged against the amount of the loan which one has availed while the interest is paid as a cost of the loan. This interest is owed either on the full sum of all EMIs or on the outstanding sum of the principal remaining to be paid.

Initially, the interest component is the principal part of the EMI payment. As we move through the term of the loan, the portion of interest repayment decreases, and the contribution to the principal repayment increases.

The EMI for a loan has three main aspects to it:

1) Loan amount – That is the total amount that a person borrowed.

2) Interest rate – This is the interest rate charged on the amount borrowed.

3) Loan term – This is the predetermined time-frame for loan repayment between the borrower and the lender.

Two methods of calculation:

1. Process Flat Rate:

In the flat-rate system, interest is only charged on the cumulative amount of the loan, irrespective of the principal amount you have already paid back.

The formula to calculate EMI using the flat rate method would be:

EMI = (Principal + Interest)/Period in Months

2. Reducing Balance interest Methods

As per the reduced EMI calculator, interest on the remaining or outstanding balance of the value of the loan is often charged after having repaid a certain value of principal per month. In this case, the EMIs remain the same but the interest factor in the EMI continues to decrease each month.

The EMI payment is directly proportional to the size of the loan and interest rates which ensures that the EMI on the loan often increases with an increase in the size and interest rate. However, the EMI is inversely proportional to the loan tenure, meaning that although the amount of interest charged increases with longer tenures, the EMI payments decrease if the loan is repaid over a longer period of time.

The formula to calculate EMI using reducing balance method is:

EMI =

P x {[R x (1+R)^N] /[(1+R)^N-1]}

P = Principal Loan Amount

R = monthly rate of interest

N = loan duration in months or number of monthly instalments

This is the most commonly used method for calculating EMIs.

Another easy way to calculate is to use online calculators. You can check this here:- Housing Loan EMI Calculator to find the EMI.

COVID Crisis: The Four Best Ways to Reduce Your Home Loan EMI Payment

With the Covid-19 induced lockdown affecting cash flows, making regular loan payments has become challenging for many people. For those who have taken home loans where the EMIs are high, this challenge becomes tougher. As a borrower, if you are looking for ways to make your home loans easy by reducing your EMI payments, follow the tips given below.

 

Change your lender:-

It is incredibly easy to shift lenders, and all you need to do is approach your current and new lenders and request a swap of the loan balance.

While taking a loan, choose a lender, who provides a low home loan interest rate. If you have now found a new lender willing to pay considerably lower interest rates, consider changing your mid-credit loan. And if you can't find a lender with a lower interest rate on home loans, you can try one willing to extend your term on repayments. Before you change lenders, use an online home loan EMI calculator to know precisely by how much your EMIs can go down.

Pre-payments help:-

Previously loan pre-payments had come with lots of fees. However, most NBFCs & HFCs such as Shubham Housing Finance and many other housing finance companies don't take pre-payment, enabling borrowers to repay substantial amounts of their home loans before the tenure ends. If you want to lower your EMIs and the amount of interest paid, prepay online, or offline your home loan at the beginning of your repayment tenure.

Make a bigger down payment:-

A higher down payment reduces the amount of the principal loan, which means that the interest payable and the EMI charged also decrease automatically. If you have some extra savings, you can use while apply for a home loan to make a substantial down payment.

Choose longer tenures:-

If no other option works for you, extend the tenure of your home loan. With a longer-term on loan repayment, you'll have to pay more interest, but your EMIs will come down dramatically. Negotiate with your lender to prolong your term on repayments. Determine the exact amount of interest you will pay using an EMI home loan calculator before you make this decision.

 

Before selecting a lender, read the home loan eligibility requirements for tenure extension, refinancing, or pre-payment. Using clever financial planning and pounce on opportunities for EMI reduction whenever possible.

  

However, be wary about EMI reduction methods which require higher interest payments on home loans. You can easily apply for a home loan with reduced housing loan EMI burden with proper preparation, and keep your savings secure for emergencies.