There was a time when it appeared that building your own home was a difficult matter, particularly for a woman. However, with the implementation of various supportive legislation and the financial security gained by women’s workers, things have grown considerably easier.
Over the last ten years, the percentage of Indian women who have borrowed a home loan has risen significantly. This represents stability in finances, independence, and freedom from previous hurdles.
As these figures continue to rise, several lenders are developing a variety of home loan programmes specifically for women. Women have the opportunity to take advantage of a variety of offers when applying for a house loan, including easy financing, speedier approvals, cheap rates of interest, and interesting add-on options.
To support women having a home, the government of India, as well as several banks and HFCs, provide advantages on housing loans to female borrowers. A number of these advantages include lower interest rates, tax breaks on home loan principal as well as interest reimbursement, and a higher likelihood of loan acceptance. Continue reading for more information on these advantages.
Home Loan Advantages for Women
The number of female employees in India is steadily rising, as is their role in monetary choices for the families they care for. Both banks and non-bank financial companies offer additional perks on their home loan offerings to inspire women to own homes, such as favorable rates of interest, increased possibilities of approval for loans, and so on.
A Preferred Rate of Interest
Because women have a superior history of returning loans, financial institutions inspire them to invest in real estate and purchase new homes. To go forward, several banks and HFCs provide interest rate concessions ranging from 0.05% to 1% on house loan rates. The interest rebate may appear insignificant, but considering the enormous size and extended payback period (often up to 30 years) of a housing loan, it greatly cuts the entire interest cost. Furthermore, savings generated from the amount of interest paid might be saved or used to pay off other monetary responsibilities.
This is a Perfect Illustration of How Much Women Applicants Can Save on the Reduced Home Loan Rates
Particulars | Woman Applicants | Other Applicants |
Loan Size | Rs. 80 Lacs | Rs. 80 Lacs |
Interest Rate on Home Loan | 9.15% | 9.20% |
Rate Difference | 0.05% | |
Loan Tenure | 20 years | 20 years |
Monthly Installment (EMI) | Rs. 72,752 | Rs. 73,010 |
Total Amount of Interest | Rs. 94,60,394 | Rs. 95,22,471 |
Total Amount Payable | Rs. 1,74,60,394 | Rs. 1,75,22,471 |
Savings on Interest | Rs. 62,077 | |
According to the scenario mentioned above, women house loan recipients gain a total of Rs. 62,077 over the rest of the borrowers. Women can utilize this money for their own needs or make investments in a mutual fund.
Have a Look on the Lenders Offering Lower Interest Rates on Home Loans for Women
Sl No. | Lender | Loan Amount | ROI | Loan Tenure | Processing Fee |
HDFC Bank | 5.00 Lacs and above | 8.45% – 10%(Reducing Per Annum) | 5 Years – 25 Years | 0.5% – 1% | |
Kotak Bank | 20.00 Lacs and above | 8.75% -10%(Reducing Per Annum) | 5 Years – 20 Years | 0% – 0.25% | |
Bank of India | 10.00 Lacs and above | 8.5% – 10.75% (Reducing Per Annum) | 5 Years – 30 Years | 0.5% – Rs.10000 | |
Canara Bank | 10.00 Lacs and above | 9.25% – 13.8% (Reducing Per Annum) | 5 Years – 30 Years | 0% | |
Aavas Housing Finance | 25 Lacs to 5 Cr | 9.9% – 18% (Reducing Per Annum) | 5 Years – 30 Years | 1% – 1.5% | |
Bajaj Housing Finance | 5 Lacs – 75 Cr | 8.45% – 10% (Reducing Per Annum) | 5 Years – 25 Years | 0.2% – 0.5% | |
PNB Housing Finance | 5 Lacs – 20 Cr | 8.75% – 14% (Reducing Per Annum) | 5 Years – 30 Years | 0.25% – 0.5% | |
Shri Ram Housing Finance | 10 Lacs – 1 Cr | Rate of Interest : 11.5% – 13% (Reducing Per Annum) | 5 Years – 20 Years | 1% – 1.25% | |
We Rize Home Loan | 5 Lacs – 75 Cr | 10% – 18% (Reducing Per Annum) | 5 Years – 20 Years | 0.5% – 1% | |
Mahindra Finance | 3 Lacs – 75 Lacs | 9% – 15% (Reducing Per Annum) | 5 Years – 25 Years | 1% – 3% | |
Home Loan Tax Advantages for Female Applicants
Regardless of males and females, the nation’s government provides tax breaks on loans for homes of up to Rs. 3.5 lac according to the provisions of the Income Tax Act of 1961. Following Section 80C of the Taxation of Earnings Act, women are allowed to deduct up to Rs. 1.5 lakh in taxes on their home loan repayments. In addition, according to Section 24(b) of the Income Tax Act, female applicants are allowed to deduct up to Rs. 2 lakh in home loan interest. Whenever women seek housing loans together with their partners or other blood relatives, their income tax savings are doubled. Although the couple must prove that they are both joint owners.
Receiving a home loan necessitates careful consideration and comparisons of rates of interest, advantages, along other factors.
The Advantage of PMAY
The Pradhan Mantri Awas Yojana (PMAY), an Indian government initiative, is a widely used credit-linked subsidy plan. The project aims to offer affordably priced homes to the nation’s citizens.
As a female prospective borrower, you can take advantage of the PMAY plan. This is because it is now required that the property in question bought through this plan must be recorded in the legal name of at least one woman in the beneficiary’s household.
Furthermore, if a female borrower applies for a home loan through this CLSS, she will be eligible for interest rate discounts.
Enjoy Lower Stamp Duty Fee
Stamp duty is a legal fee charged by the state government when registering a residence, which can be a pricey expense. However, women are eligible for a 1% to 2% reduction.
Points to Keep in Mind While Asking for a Home Loan
Listed below are important factors to consider when requesting a home loan.
The Overall EMI Cost
You will continue to make monthly payments on the balance of the loan until it is paid off. Every single EMI contains both interest as well as principal. As a result, with each EMI, the total amount of your principal repayments increases, but your interest payments go down gradually.
Duration
Calculate how long it will take you to complete the repayment of the money you’ve borrowed. You can select a time frame that is suitable for you depending on the nature of your projected earnings.
Interest Rate
A banking organization or financial organization asks for interest for lending products. The amount of the principal sets your interest rate, which you have to repay.
Additional Charges
Along with the EMIs, banking institutions may charge applicants additional operational, processing, or service-related charges when they apply for a loan. Ensure that you go over these factors with the lending institution just before applying for a loan.
Double-check to see if these are regular costs or one-time expenses; if the latter, revise the monthly spending plan to include those with your EMIs.
Basic Documents to Apply For a Home Loan
Documents Required | Salaried Applicants | Self-Employed Applicants |
KYC of Applicant & Co-Applicant | Yes | Yes |
Last 3 Month Salary Slip | Yes | – |
Last 12 Month Bank Statement | Yes | Yes |
Last 3 Year ITR with Computation | Yes | Yes |
Last 2 Year Form 16 | Yes | – |
26AS of Last 2 Years | Yes | Yes |
Appointment Letter | If available | – |
Agreement to Sale | If purchase case | If new purchase case |
Property Paper with Chain | Complete chain of last 13 years | Complete chain of last 13 years |
Approved MAP of Property | If available | If available |
LOD, Foreclosure Statement, SOA | If BT case | If BT case |
Sanction Letter of Running Loans | Yes | Yes |
Latest Utility Bill | If owned residence or rent agreement if rented | If owned residence or rent agreement if rented |
Reference with Contact Details | 2 | 2 |
Last 3 Year Audited Balance Sheet | – | Yes |
Last 3 Year Tax Audit Report | – | Yes |
Copy of GST Registration | – | Yes |
Copy of MSME Registration | – | Yes |
Last 12 Month GST Return | – | Yes |
Debt Sheet | – | Yes |
Latest Utility Bill of Office | – | If owned or rent agreement if rented |
Last 3 Years Debtors & Creditors | – | On letterhead |
List of Directors & Shareholders | – | If applicant is Company or List of Partners if applicant is Partnership firm/LLP |
This table organizes the document requirements for both types of applicants, making it easier to
How Will You Apply for a Home Loan?
If you’re looking for a quick loan, complete the instructions below:
- Open https://referloan.in/.
- Navigate to the loan option.
- If you’re an existing client, complete the form. New people must first register before submitting their application form.
- Enter all of the information along with the mobile phone or email OTP authentication.
- Bring in your earnings and KYC information.
- Choose your loan size.
- Attach all relevant papers.
- Send your application form.
Bottom Line
When you’ve figured out the most favorable lenders and banking institutions for home financing, keep in mind that not every financing programme is right for each applicant.
Whenever you ask for a home loan, you must thoroughly review the conditions, which vary depending on the applicant or the financial institution. Therefore, you need to choose a house loan according to your borrowing needs, payback capacity, and financial situation.