Home Loan for Women: How to Apply, Interest Rates, Benefits and Eligibility
As a step towards empowering women to make independent financial decisions, today most banks and NBFCs offer home loans for women. The benefits are many, including lower interest rates, tax deduction benefits and lower stamp duty charges, among others. Women borrowers can get interest concessions of 5 bps or 0.05% on the advertised rate. This is a primary reason why many married couples go for joint home loans, where the woman acts as the primary applicant.
Let’s understand the benefits, interest rate and eligibility criteria for home loans for women.
Features and Benefits of Home Loan for Women
Here are some of the features and benefits of home loans for women:
1. Lower Interest Rates
Most banks and NBFCs offer lower interest rates, up to up to 0.05% to women borrowers for home loans. This acts as a perk for women to fulfil their dreams of conveniently owning a house and repaying the loan amount.
2. Lower Stamp Duty Charges
Women home loan applicants can enjoy 1% – 2% lower stamp duty charges. So, on a property worth Rs.70 lakh, women can save at least Rs.70,000 to Rs.1.4 lakh on stamp duty charges.
3. Big Ticket Size
Women borrowers can become co-applicants for home loan with their spouses to be eligible for a higher loan amount. It is also usually easier for women to get a loan sanctioned compared to men due to their financial habits.
4. Long Repayment Tenure
Women borrowers are most likely to receive a long repayment tenure up to 30 years and comparatively low-interest rates for home loans. However, this facility might vary among different banks and NBFCs.
5. Tax Benefits
Women applicants can also claim tax benefits of up to Rs. 1.5 lakh on the principal amount and Rs. 2 lakh on interest on their home loan under Section 80C and Section 24 (b) respectively. So, a married couple applying for a joint home can save up to Rs.7 lakh on their tax outgo.
10 Home Loan Interest Rates for Women [2023]
Let’s look at the current home loan interest rates for women.
Refer to the table below to know the best home loan interest rates offered to women:
| Lending Institutions | Interest Rates Starting from (per annum) | Processing Fees |
| Navi Home Loans | 8.39% onwards | Nil |
| Union Bank of India | 8.60% onwards | Nil |
| Axis Bank | 8.60% onwards | 1% |
| SBI | 8.40% onwards | 0.35% |
| ICICI Bank | 8.10% onwards | 0.5% – 2% |
| HDFC Bank | 8.20% onwards | 0.50% |
| Bank of Baroda | 8.65% onwards | 0.50% |
| Bank of India | 7.80% onwards | 0.25% |
| LIC Housing Finance | 8.30% onwards | Check with lender |
| Federal Bank | 7.65% onwards | 0.50% |
*Note that this table is only for educational purposes. The current home loan interest rates are subject to change based on the concerned bank’s discretion.
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Eligibility Criteria
Refer to the table below to understand the basic eligibility criteria for women applicants:
| Eligibility Criteria | Requirement |
| Nationality | Indian |
| Age | Between 23-65 |
| Employment Status | Salaried or Self-Employed |
| Work Experience | At Least 2 Years (may vary) |
| Credit Score | 750 and above |
| Income Level | ₹20,000 per Month |
| Type of Applicant | Individual or Co-applicant (May Depend on the bank/ NBFC) |
Documents Required
Depending on the bank, the set of documents required can vary, but there are some general prerequisites:
- Identity proof: PAN card, passport, Aadhar card, driving licence.
- Address proof: Aadhaar card, ration card, and utility bills like electricity bills, water bills, telephone bills, etc.
- Passport-size photographs.
- Bank account statements.
- Salary slips for the past 6 months (salaried employees).
- Business details like proof of employment, and Income Tax Returns.
How to Apply for Home Loan?
Below are a few easy steps to apply for a home loan for women online.
Step 1: Go to the lender’s official website or download their app.
Step 2: Fill in basic details like your name, address, city you live in, PAN and Aadhaar details, income details, etc.
Step 3: Based on your details, the lender will determine your loan eligibility. Check how much loan you’re eligible for and the interest rate offered.
Step 4: Complete your KYC verification with PAN, Aadhaar and income details.
Step 5: Link your bank account and get in-principle loan approval.
This process may vary from lender to lender. Some may ask you to submit more documents online or offline to verify customer profile.
PMAY Scheme and its Benefits for Women
Pradhan Mantri Awas Yojana is part of the “Housing For All” scheme. It makes it mandatory for the ownership of the house to also be under the name of the female head. It gives a lot of benefits to women, like
- Under this scheme, women get preference when it comes to getting a women’s home loan. It ensures that they do not face any discrimination.
- Women from Economically Weaker Section, Lower Income Group, and middle-Income Group are sanctioned to get a subsidy of Rs. 2.67 lakh. This subsidy is given for the construction and purchase of only the first house of the female.
- The interest rate is also subsidised for female applicants. On a loan of up to Rs.6 lakh, women borrowers in EWS and LIG can get an interest subsidy of 6.5%.
- The Ministry of Housing and Urban Development has made it very easy for a woman to apply for a loan under this scheme.
Also Read
How to Claim Tax Benefits on Home Loan for Women?
Following are the tax deductions available on home loans availed by women:
1. Section 80C
Deduction of up to Rs.1.5 lakh on the principal repayment under Section 80C.
2. Section 24(b)
Deduction of up to Rs.2 lakh on the payment of interest under Section 24(b).
3. Section 80EEA
If the loan was approved between the period of April 01, 2019, and March 31, 2021, an additional deduction of Rs.1.5 lakh under Section 80EEA is available on the interest paid. However, there are certain terms and conditions attached to claim this deduction.
Things to Consider before Applying for Home Loan for Women
While availing of a home loan, women should keep the following pointers in mind:
1. Credit Score
Prior to applying for a home loan, individuals should check their credit score. A credit score of 750+ will get you a loan approved real quick without any hassle.
2. Government Schemes
The government has introduced multiple schemes and services for home loans taken by women to encourage single women to become homeowners. Women should take advantage of schemes such as PMAY and facilities like lower stamp duty and registration charges, interest subsidies and tax benefits.
3. Co-ownership
If it is possible, women should opt for co-ownership. This will enable both buyers to claim tax benefits and help secure a higher loan amount.
4. Hidden Charges
While availing of a loan, the lender usually only provides the home acquisition cost. However, there are other costs such as stamp duty, registration charges, processing fees, late payment charges and prepayment charges which have to be covered by the borrower. It is wise to discuss these with the lender beforehand to avoid complications later.
Final Word
If you are a woman looking for home loan options, compare the interest rates offered by lenders and other terms and conditions before signing up for a home loan. Check interest rates, any offer available, terms and conditions, etc.
Navi offers home loans up to 90% of the property value at attractive rates starting from 8.39% p.a. What’s more – the entire application process is completely paperless, meaning you don’t have to visit a bank to submit documents. Just download the Navi app and apply for a loan now!
FAQs
Ans: No, these schemes are not available to housemakers. Only salaried and self-employed women qualify to apply for this loan. But housemakers can get a loan if they are co-borrowers.
Ans: Housing loan schemes try to be as non-discriminatory as possible. So, marital status does not matter. Any single, married, divorced or widowed woman who is earning and is above 18 can apply for this loan.
Ans: Every bank sets its own value on the minimum salary women need to earn as part of the eligibility criteria. Most financial institutions require applicants to have a monthly income of Rs. 15,000 per month or more.
Ans: Couples getting a home loan together can get a tax deduction on the interest and principal component of EMI.
Ans: No. Only women from households with an annual income less than Rs. 18 Lakhs can apply for a housing loan under the PMAY scheme.
Before you go…
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Disclaimer: This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
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