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:

  • Needs to be an Indian Citizen
  • Age should be between 18 – 70
  • Need to be a salaried employee with a good credit rating
  • Should be primary or sole applicant

Features of Home Loans for Women

The unique features of home loan for women include:

  • Higher approval rate

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.

  • Reduced stamp duty

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.

  • Offered reduced interest rate

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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Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.