Know The Home Loan Benefits For Ladies

Oct 19th 2023
Loan
Investkraft

Home Loan Benefits For Ladies, When it comes to buying a home, home loan emerges as the best option for people to arrange funds for this high value purchase. But very few people know that they can make big savings with a home loan for women. A home loan for women tends to offer more value to the borrowers in several ways. One of them is that banks charges home loan interest rate for women. If you want to know more about home loan benefits for ladies, let’s get to know about the same in the following part of this post.

Women and Home Loans: A Win-Win

In the present day, women now play a significant role in the choice to buy a property. Women are either working full-time jobs or starting their own enterprises in greater numbers, and they are no longer financially dependent on their husbands or dads. As a result, many of them are able to make financial contributions for mortgages on par with their husbands. If a woman takes out a house loan, there are several benefits that come with it. We'll look at a few of the important ones that demonstrate why it's a good idea to always include a woman as a borrower when applying for a house loan.

Also Read: Benefits Of Refinancing Home Loan

What is a Home Loan For Women?

Put simply, any home application is considered a home loan for women if the applicant is a female. There are several benefits of opting for housing loans for women. You can easily search for a home loan scheme for ladies

Home Loan Benefits For Female in India

Below are some of the biggest benefits of choosing a housing loan for women.

Bank Interest Rate Processing Fee
Union Bank of India Home Loan 7.40% p.a. Up to 0.50%
Kotak Mahindra Home Loan 7.50% p.a. Up to 0.50%

Bank of Baroda

7.45% p.a. Up to 0.50%

SBI Home Loan

7.55% p.a 0.35% Max Rs. 10,000

Bank of Baroda       

7.45% p.a. Up to 0.50%

SBI Home Loan                         

7.55% p.a       0.35% Max Rs. 10,000

HDFC Ltd. Home Loan

7.55% p.a. Up to 0.50%

Axis Bank Home Loan               

7.60% p.a       Up to 0.50%                

LIC HFL Home Loan

7.50% p.a. Up to 0.25% plus taxes
  1. Advantage to women as co-borrowers - Women can apply as co-borrowers with their spouses, which benefits them in two ways. The couple's combined salary may increase their loan eligibility and provide them more freedom to find a family-friendly property. Additionally, much like their male spouses, women are entitled to a tax deduction on their house loan repayments, with the maximum deductions being Rs. 1.5 lakh for principle and Rs. 2 lakh for interest.
  2. Competitive interest rate - For female candidates, several mortgage lenders offer reduced interest rates. Equated Monthly Instalments (EMIs) are greatly affected by the interest rate and can be significantly reduced during the course of the loan. For example, you can refer to the following table to check the home loan interest rate for women.
  3. Reduced stamp duty - Women who apply for house loans might benefit from 1%–2% cheaper stamp duty fees. Therefore, women can save anywhere between Rs. 70,000 and Rs. 1.4 lakh in stamp duty fees on a home valued Rs. 70 lakh.
  4. PMAY Scheme - Female head of the household must be a co-owner under the Pradhan Mantri Awas Yojana (PMAY). Preference is given to widows as well as single women in the Economically Weaker Section (EWS) and Low Income Group (LIG) sectors of the PMAY scheme. It is a wonderful home loan scheme for ladies.
  5. Better Chances of Loan Approval - Many financial institutions' historical patterns have shown that, in comparison to males, women are habitual savers, avoid unneeded loans, are highly conservative with home finances, and historically had lower default rates when borrowing. Financial institutions are eager to provide house loans for women as a result of all these variables.
  6. Income Tax Benefit - Both husband and wife are eligible for a tax deduction for principal and interest payments made on the same combined mortgage. Each person may deduct a maximum of Rs. 1.5 lakh for the principal portion of the EMI (under Section 80C) and Rs. 2 lakh for the interest portion (under Section 24) of the EMI. As a result, they can each receive a maximum principal deduction of Rs. 3 lakh as a pair.

Read More: Guide to Home Equity Loans: Advantages & Drawbacks, Eligibility & Limits

Eligibility For A Home Loan For Women

An individual must be able to satisfy certain requirements before any Financial Institute can authorise a house loan for her. These qualifying requirements for house loans for women are straightforward and condensed:

  • She ought to be an Indian citizen.
  • She should be between the ages of 20 and 60.
  • She should have at least two years of job experience.
  • A credit score of 650 or above is required.
  • A monthly household income of at least Rs. 15,000

FAQs

1. What is The Typical Difference in Interest Rates For House Loans For Men and Women?

Women often receive a 5 to 10 basis point reduction on the interest rate for a mortgage.

2. How Long May Women Borrow Money Before Having to Repay It?

The majority of institutions have established a 30-year maximum payback period for women.

3. Are There Any Home Loans Available For Housewives Without a Steady Source of Income?

Yes, housewives can apply for home loans using gold, real estate, or fixed deposits as security.

4. Who Determines The Rates of Stamp Duty?

The state government sets the stamp duty rates.

The Conclusion

Over the past 20 years, women's advancement in India has accelerated significantly. Many more millennial women are assuming leadership roles and taking on more financial obligations. The Indian government and several banking organizations provide special deals on house loans for women in an effort to advance financial and economic equality in the nation, despite the fact that the financial standing of men and women is still not seen as equal in many areas.

Investkraft can assist you with your needs if you're looking for the house of your dreams and creating a budget to pay for it. Here, you'll discover the most amazing deals on a housing loan for women on residential real estate and financial guidance.

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