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Today, women are becoming financially independent. Hence, there has been an increase in the number of female home loan borrowers. Customised home loan offerings for women are encouraging them to invest in property and own a home.
The Government of India tries to encourage women to take home loans by offering various benefits. However, it is important to be careful with the decision of taking a home loan. This means, it is necessary to know as much as you can about it.
Go through the details below to learn about home loans for women in India.
Eligibility Criteria on Home Loans for Women
A female applicant has to fulfill the following eligibility criteria to apply for a home loan:
Features of Home Loans for Women
The unique features of home loan for women include:
The government of India launched a scheme called Pradhan Mantri Awas Yojana on June 25, 2015. The purpose of this scheme is to provide proper housing to economically challenged individuals in society. This includes people belonging to low and medium income groups, scheduled castes and tribes, etc. as part of this scheme, single working women and widows can get home loans as well. Moreover, if the loan application in this scheme has a woman as a principal or joint applicant, the processing of it is much faster.
Stamp duty is a crucial part of home purchase. A high stamp duty means, you would have to spend more on the purchase. More importantly, the stamp duty is often included in the loan. Hence, a higher stamp duty means more money to be borrowed and to be repaid. Additionally, it also means that the repayment of the loan will take longer. Hence, a lower stamp duty can make a huge difference. For home loans offered to women, borrowers get a 1%-2% concession on the stamp duty. For example, if a woman buys a home worth ₹ 50,00,000, the stamp duty concession ends up saving her around ₹ 50,000 to ₹ 1,00,000.
When availing a home loan, the amount may go up to a several lakhs, however, even a slight decrease in the housing loan interest rate would benefit the borrower. Besides, a reduced interest rate also leads to a lower loan EMI that will help her save more.
Lenders increase their sanctions to encourage female loan borrowers, hence, making it simple for them to fulfill the eligibility criteria for a housing loan. Additionally, women can also choose longer repayment tenures, which can help reduce financial burden and ensure loan repayment without any hassles. Hence, today, it has become easy for women to apply for home loan.
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