Benefits Of Home Loan For Women And How To Apply Online

Home Loan

Buying a home is a life decision for everyone. While men have been doing it for ages, a woman buying a home is still a new concept. Not only does it require financial stability but also, courage. Thankfully, there are many benefits of taking a home loan for women. Banks and NBFCs provide lower interest rates and tax benefits to women who take a home loan.

If you have found your dream home, then the next step would be to get a home loan. Read on to learn about home loans for women, the benefits, interest rates, documents required and how to apply online for hassle-free loan disbursal. 

Home Loan for Women – A Brief Introduction

Most working couples prefer taking a joint home loan, at least the latest data suggests such. There’s a reason for that. Today, many banks/NBFCs offer preferential rates to women applicants. Usually, lenders offer 0.5% lesser interest rates than the normal rates. This has helped many working couples who are aspiring homebuyers get a home loan at lower rates, provided it’s a joint home loan.

Let’s look at the current home loan interest rates for women.

Home Loan Interest Rates for Women [2022]

*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.

Features of Home Loan for Women

1. Low-interest rate

Women borrowers can get a concession on the interest rate when it comes to taking a home loan. The concession ranges from 0.05% to 0.1%. In the broader picture, this makes repaying the loan more feasible and has a huge impact on EMI. 

2. Tax deduction and lower stamp duty

Stamp duty is a tax levied by the government on the transfer of assets of a property. Most state governments reduce this tax by 1%-2% for women. 

So, if you are a female house owner, you could save Rs. 30,000 to Rs. 60,000 on a property of Rs. 30 Lakhs. 

3. High loan amount and long tenure

Women can get a housing loan for a high amount ranging from Rs 30 lakh to Rs.10 crore or more. This high amount loan can be repaid in up to 25 years with discounted EMI.

Benefits of Home Loan for Women

Following are some of the benefits of availing of a home loan for women:

1. Simple eligibility criteria

A woman borrower can be eligible for a higher loan amount. However, this may vary from lender to lender.

2. Attractive add-on offers

Some lenders provide add-on offers like gold coins, expensive vouchers, gift cards, hampers, etc.

3. Higher loan eligibility

Women borrowers can apply with their spouses as co-applicants to increase their loan eligibility. 

4. Tax benefit

Women home loan applicants can get a maximum deduction of Rs. 1.5 lakhs on the principal component and Rs. 2 lakhs on the interest component of home loans. 

Also Read: Mahila Samriddhi Yojana: A Micro Finance Scheme For Women Entrepreneurs

Home Loan for Women Eligibility Criteria  

The eligibility criteria for every loan differ from one bank to another, but there are some common guidelines:

• An applicant should be an Indian citizen. 
• Age: Between 23 to 65
• Employment status: salaried employee or self-employed
• Work experience: Most banks accept applicants with at least 2 years of work experience
• A good credit score, usually above 750
• Every bank sets a minimum income level, usually above Rs. 20,000 per month
• Some banks accept women as individual applicants, but most ask to add a family member as a co-applicant

Documents Required for a Home Loan for Women

Depending on the bank, the set of documents required can vary, but there are some general prerequisites:

• Home loan application form is filled up by following particular instructions. 
• Identity proof: PAN card, passport, Aadhar card, driving license.
• 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 Navi Home Loan?

Applying for a home loan with Navi is extremely simple. Follow these steps to apply for a home loan online:

Step 1: Download the Navi app.

Step 2: Subsequently, register on the app using the mobile number.

Step 3: Next, fill in personal and employment details.

Step 4: Enter PAN and Aadhar details.

Step 5: Select city and property details.

Step 6: Enter your profile and work details.

Step 7: Check your loan eligibility

If the details are correct, you would get an in-principle approval almost instantly. Download the Navi app today!

Why should Women Opt for Home Loans?

Women are more financially independent than ever. Their contribution to society is unmatched. To own their own home and realize their dreams is their right. Also, buying a home can prove to be an excellent investment in the long term.  

Working women can also save on their taxes substantially with a home loan. With Government schemes like Pradhan Mantri Awas Yojana (PMAY) and credit-linked subsidy schemes (CLSS) promoting women’s ownership of property, it has never been a better time for aspiring women to become home buyers. 

PMAY Scheme and its Benefits 

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 lakhs. This subsidy is given for the construction and purchase of only the first house of the female. 
• The interest rate is also subsidized for female applicants. On a loan of up to Rs. 6 Lakhs, 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.

How to Claim Tax Benefits on Home Loan for Women?

Women homeowners enjoy multiple tax benefits either as the sole owner or co-owner.

Following are the tax deductions available on home loans availed by women:

• Deduction of up to Rs.1.5 lakh on the principal repayment under Section 80C.
• Deduction of up to Rs.2 lakh on the payment of interest under Section 24(b).
• 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.
• In most states, women homeowners enjoy the benefit of lower stamp duty and registration charges which is 1-2% less than the regular charges paid by the male buyers.

Also Read: Home Loan Eligibility For The Salaried: How Much Home Loan Can I Get On My Salary

Things to Consider before Applying for Home Loan for Women

While availing of a home loan, women should keep the following pointers in mind:

• 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.
• 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.
• 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.
• 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

Home loan for women makes it easier for women to take a huge financial step. It enables them to stay safe and secured under the protection and comfort of their own house. 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 7.93% 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 on Home Loans for Women

Before you go…

Are you looking to buy that house you’ve been eyeing 🏠 and you need a loan of up to ₹5 crore. Install the Navi app now and get instant in-principle approval right away! Interest rates starting at 7.89% p.a.

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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