The current financial laws in India offer certain lucrative benefits and concessions to women, be it with regard to opening an account, tax exemptions and home loans. Banks and non-banking financial companies believe that women have a lower risk profile, meaning they are more likely to pay off dues in a timely manner without defaulting, and therefore continually increase the number of home loan schemes available to women at much lower interest rates than that available to men. Interestingly, applications where women are the primary or co-applicant are less likely to be rejected, unless of course their credit score is not up to mark. One prime objective behind these unique laws and offers is women empowerment, i.e. encouraging more and more women to be financially independent and invest in assets such as a home.
Here are reasons why home loans for women are so popular today:
i) Lower interest rates: Since lenders consider women to be more reliable borrowers, they offer them home loans at interest rates that are a few points lower than market rate. Even with a difference as low as 0.05-0.1%, the impact on the monthly EMIs (Equated monthly installment) is significant. With loans generally running in lakhs, a borrower can easily save a couple of thousands. Check out the best home loans for women curated by Fincity experts!
ii) PMAY (Pradhan Mantri Awas Yojana): This mission launched by the government in 2015 gives more preference to women home loan applicants, offering up to Rs. 2.67 lakh subsidy on loan interest. However, to avail of these benefits, the applicant is required to be a co-owner of the property.
iii) Lower stamp duty: In an effort to promote women buyers, some Indian states charge 1-2% lower stamp duty when the house is being registered in the name of a woman. This amounts to a substantial sum considering the price of the property. However, this does not apply to every state and will vary based on the state in which the house is being registered.
iv) Less stringent eligibility criteria and higher loan amounts: Most lenders have relatively simple eligibility criterias when it comes to women borrowers, most popular ones requiring the woman home loan applicant to be between 23 and 58 years of age and having had at least 3 years of work experience. Once eligible, they can access a home loan ranging anywhere from 30 lakhs to 3.5 crores. These combined with the fact that women are preferred when it comes to sanctioning of loans makes it a smoother ride overall, offering most couples an advantage of making the lady the primary home loan applicant.
v) Longer loan tenures: A longer loan tenure of up to 25 years helps bring down monthly EMI amounts and makes it easier to handle other financial obligations along with loan repayment. In fact, a woman borrower can also make prepayments or foreclose the loan at no charge.
With the government introducing women-friendly schemes like Pradhan Mantri Awas Yojana, the number of women applying for home loans in recent years has gone up by 6%.
Are you a woman looking to buy/own a house? Check your home loan eligibility with Fincity’s home loan calculator in a matter of seconds. Once eligible, stride towards your goal with customized home loans for women at the lowest interest rates from 50+ top lenders.
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