25 MAY, 2021

As a single working woman, it could be a liberating feeling to own a home. With home loans, today the dream of owning a house has become much easier. Moreover, due the increase in the number of women opting for home loans, many lenders are offering specific home loan schemes for women.

If you are a single working woman planning to avail a home loan, here are few tips to make the home buying journey easy.

Assess Your Affordability/ Financial Portfolio

Availing a home loan is a huge financial decision. This is why you must assess your affordability before you apply for a home. You can calculate your current total expenses by taking into account all fixed expenses like utility bills, rent, EMIs if any etc. Accordingly, you can determine how much you will be able to shell out as EMI for a home loan/spend towards your home purchase.

Check Your Eligibility

To avoid getting rejected, check your eligibility before applying. Lenders consider factors like income, city of residence, age, credit score, etc. to determine your home loan eligiblity You can check eligiblity online using a home loan eligibility calculator.

Choose Your Lender Carefully

As a single woman, there might be many other financial responsibilities you need to fulfil. This is why it is important to take a loan that does not cause any inconvenience to you in future. It is best to do a thorough research about the available options and then choose a lender that is suitable for you. You can choose a lender that offers competitive interest rates, low processing fees and features like top-up loan, and doorstep assistance. It would also help if you consider other factors like ease of application and hassle-free documentation required while making the choice. You can explore the benefits of availing a home loan with Kotak Mahindra Bank, which ticks all the right boxes.  

Apply with a co-applicant

If you want to improve your eligibility, you can opt for a joint loan. You can take a joint loan with your parents. By availing a joint loan, you can take a high-value loan and share the loan repayment responsibility with the co-applicant. With a joint loan, each co-applicant can take the benefit of tax deductions individually. Moreover, this would also mean that you do not need to compromise on your choice of property just because it costs little more than what you can single-handedly afford.

Make use of Government Schemes

Nowadays, the government is supportive of women home loan borrowers. While looking for a home loan, you can take the benefit of Government schemes to avail subsidies. With Pradhan Mantri Awas Yojana, borrowers can avail the credit-linked subsidy scheme and claim a subsidy of up to Rs 2.67 lakh if the house is owned or co-owned by a woman.

Save for Down payment

A higher down payment can help you reduce the loan amount right at the beginning, thereby making the loan affordable. A higher down payment reduces the principal amount, interest outgo and the EMI too. On the other hand, if you pay a lower down payment, the loan amount would be higher, increasing the EMI and tenure. 

Know about tax benefits

There are several tax benefits on home loan that you should know about. Under section 80C of the Income tax Act, 1961, you can avail a deduction on the principal repayment from your income up to Rs 1.5 lakh. You can also avail a deduction on the interest repayment from your income up to Rs 2 lakh under section 24(b). An additional deduction of Rs 50,000 is also available on the interest repayment, if you are a first-time home buyer.

Before you avail a loan, ensure that you have adequate knowledge of the various aspects of the loan like the charges, interest rate reset clause, impact of market rates on your EMI, etc.  Also, it would be helpful if you have all the necessary documents with you while applying for a loan for a smooth process. For a hassle-free application process, you can avail a home loan with Kotak Mahindra Bank. We offer features like competitive interest rates, doorstep assistance, transparent application process, low processing fees and easy home loan balance transfer.

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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.