A home loan is a secured loan in which the borrower offers an asset as collateral and gathers funds to purchase the desired home. As women are getting financially independent in society, lending institutions have organised home loans for women schemes. There are various benefits attached to this loan, including low-interest rates, longer repayment tenure, tax benefits, etc.
5 Ways Home Loans Can Be Beneficial For Women
Following are the five beneficial factors women can get while opting for a home loan:
1. Reasonable interest rates
When opting for a home loan, the foremost thing that draws attention is the rate of interest. A small interest change can cause a massive burden on the borrower since a home loan is taken for longer durations. Numerous lending institutions offer home loans for women with lower interest rates.
This low-interest rate can significantly affect the Equated Monthly Instalments (EMIs) while offering considerable savings over the loan tenure.
2. PMAY Scheme
The Pradhan Mantri Awas Yojana (PMAY) scheme has been adopted in the economically weak sections and low-income group segments. This scheme provides the scope for women to apply for a home loan as co-borrowers alongside their spouses. Also, the PMAY scheme provides interest funding up to Rs. 2.67 Lakh.
Joined earnings increase your chances to opt for higher loan eligibility and flexibility to select a perfect home for your family. In addition, with the home loan for women, you can also make your personalized space in the house.
3. Less burden of stamp duty
Another vital factor women can benefit from home loans is on Stamp Duty. This amount is to be paid on the cost of the property or transfer agreement. The government has encouraged women to own property by reducing stamp duty charges. Various state governments provide 1 to 2 percent stamp duty charges on home loan for women.
4. Long repayment tenure
Home loan offers high loan amounts besides longer tenure to working women. You will get flexible repayment tenure of up to five years to clear the entire repayment. This way, women can lessen their financial strain by lowering their EMIs. In addition, they can go for a prepayment of the loan without incurring any foreclosure charges.
5. Tax benefits
While applying for a home loan, you can apply for a higher loan amount with your spouse as a co-applicant. Similar to men, women can also get tax benefits on home loans.
According to Section 80C of the Income Tax Act, if you borrow a home loan individually, you can enjoy a tax deduction of up to Rs. 1.5 Lakhs on the face value. In the same way, as per Section 24, you can save Rs. 2 Lakhs while claiming a tax deduction. Again, if you and your spouse take a home loan jointly, you can get a significant tax deduction of Rs. 3 Lakhs on the face value.
Eligibility Criteria for a Home Loan
The eligibility criteria for a home loan are as follows:
- The applicant must be an Indian citizen
- Age limit of women must be between 18 years and 70 years
- The woman must be salaried or self-employed
- A CIBIL score of 750 or more is ideal
Take the help of a home loan eligibility calculator to determine whether you are in the financial position to opt for a home loan or not.
Documents required for a home loan
The following documents are needed along with the application form while applying for a home loan for women:
- Identity proof (includes PAN card, Aadhaar card, voter ID card, passport, or driving license)
- Address proof (comprises Aadhaar card, utility bill, passport, or ration card)
- Income proof (includes salary certificate, and bank account statements for the last six months)
- Income Tax Returns (for the last three years and profit and loss statements of your organization)
How to Apply for a Home Loan for Women?
The steps to apply for a home loan for women are as follows:
Step 1: Visit the online portal of any lending institution
Step 2: Fill out the application form with all details such as your name, address, phone number, etc.
Step 3: You will receive an OTP on your registered mobile number for the verification procedure.
Step 4: You must fill out the personal and professional requirements to determine your eligibility.
Step 5: Choose the loan amount and tenure of repayment
Step 6: Wait for approval
Step 7: After getting the loan approval the amount will be credited to your account
These days home loan for women has emerged as a strong financial instrument to build their dream home individually or jointly with their spouse. If you want to apply for this loan, make sure that you go through all of its terms and guidelines thoroughly.