Investment in real estate is an important aspect of financial independence, which for an extended period, was considered to be a men-only affair in India. In fact, female interference in economic matters was not accepted by society at large.
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With more and more women attaining financial independence in the last two decades, our country has witnessed notable growth in the tribe of women homeowners.
According to a survey published by Anarock, more than 60% of women in India prefer residential real estate investments over any other investment channels.
To support the enthusiasm and encourage more women to come forward and invest in residential properties, the Government of India and banking institutions are proposing multiple lucrative offers on home loan for women.
Benefits and Features of Home Loan for Women
Higher rate of loan approval – The Pradhan Mantri Awas Yojana (PMAY) scheme, Higher rate of loan approval:
- Pradhan Mantri Awas Yojana (PMAY) scheme by the Govt. of India focuses on providing pukka houses to:
- Low-income group (LIG)
- Economically weaker section (EWS)
- Medium-income group (MIG)
- Scheduled castes and scheduled tribes
- Preferences for women regardless of marital status, age, or class
- 6% increase in candidates applying for home loans for women
- Compulsory co-ownership for women with an interest subsidy of Rs. 2.67 lakh
- Faster processing of house loans for women as principal or joint applicants
- Lower stamp duty charges for women applicants:
- Stamp duty payable by the buyer during property transactions
- Women pay 1-2% less stamp duty than men in many state governments
- Potential savings of Rs. 70,000 to Rs. 1,40,000 on stamp duty for a Rs. 70 lakh property
Why Opting for a Home Loan is a Smart Move for Women?
In today’s era, where empowerment and financial independence are pivotal for women, opting for a home loan emerges as a strategic and empowering decision. Here’s why taking a home loan is not just a financial move, but a step towards personal and societal empowerment for women:
Read: Here’s Everything You Need to Know About Plot Loans
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Higher Approval Odds: Statistics from numerous lending institutions reveal a lower incidence of loan defaults among women. This pattern has led to a favorable perspective towards female applicants, significantly boosting their chances of home loan approval. It’s not just about acquiring property; it’s about the trust and reliability that women bring to the financial table.
Read: Central Bank of India Home Loan Interest Rate 2024
Tailored Schemes and Benefits: The financial world is recognising the potential of women as homeowners. Consequently, an array of specialised schemes and incentives specifically targeting women have been introduced. These include lower interest rates and dedicated assistance, making it financially advantageous for women to apply for home loans.
An Opportune Time for Investment: The current real estate climate in India makes it an opportune time for women to invest in property. With the Credit Linked Subsidy Scheme (CLSS) under the Pradhan Mantri Awas Yojana (PMAY), first-time homebuyers, irrespective of gender, can avail of a subsidy up to Rs. 2.67 lakh. Additionally, the market is ripe with quality properties at attractive prices, backed by the assurance of regulatory transparency brought in by the Real Estate (Regulation and Development) Act (RERA).
Empowerment through homeownership is more than just a financial decision for women; it’s a declaration of independence and capability. With supportive financial systems and a favourable government stance, the journey towards owning a dream home is more accessible and encouraging than ever for women. This opportunity is not just about securing a physical space; it’s about cementing a position of financial strength and societal recognition.
Best Home Loans Offers for Women
Here is a collection of the best Home Loan offers and Home Loan Interest rates for women:
| Bank | Interest Rate | Processing Fee |
| Union Bank of India Home Loan | 7.40% p.a. | Up to 0.50% |
| Kotak Mahindra Home Loan | 7.50% p.a. | Up to 0.50% |
| Bank of Baroda | 7.45% p.a. | Up to 0.50% |
| SBI Home Loan | 7.55% p.a | 0.35% Max Rs. 10,000 |
| HDFC Ltd. Home Loan | 7.55% p.a. | Up to 0.50% |
| Axis Bank Home Loan | 7.60% p.a. | Up to 0.50% |
| LIC HFL Home Loan | 7.50% p.a | Up to 0.25% plus taxes |
Documents Required for Home Loan for Women
Here are the documents that are required to apply for a women’s home loan.
- Identity Proof – You may use a
- Driving License
- Voter ID card
- PAN Card
- Valid Passport
- Aadhar Card and so on
- Proof of Residence – includes
- Aadhar Card
- Ration Card
- Telephone Bill
- Electricity Bill
- Water Bill
- Gas Connection Bill
- Other Documents required such as Passport Size photographs, Bank Statements, Salary Slips etc.
Tax deductions
Every individual who repays the home loan with interest is liable for certain tax deductions. However, the maximum limit on tax deductions for women is higher than for men. Men get a maximum tax deduction of Rs. 1,50,000 on principal and interest repayment, while women get a maximum tax deduction of Rs. 2,00,000.
Extended Tenure for Loan Repayment
Home loans can go on for a long time. Usually, the loan repayment tenure is around 25 years, but a home loan for women can be repaid in 30 years or till the applicant turns 70 years of age, whichever happens first. This helps women lower their monthly EMIs, thus giving them a significant advantage by reducing the risk of foreclosure. Comparatively lower interest rate – Lenders have noticed that women borrowers tend to be more reliable and have a better credit history. Therefore, to encourage women to buy property, the women’s home loan interest rate is lowered by 0.05 to 0.1 per cent. Considering the amount and home loan tenure, this minute percentage can help lower the monthly EMIs and reduce the financial burden for women.
Read: Home Loan in Budget : Home Loan Tax Benefits in Budget 2024
Steps to Follow When Applying for a Home Loan
Applying for a home loan can be a daunting task, but with the right information and guidance, you can make the process smoother. Here are some steps to follow when applying for a home loan:
- Check your eligibility: Before applying for a home loan, check your eligibility criteria such as age, income, and credit score. NoBroker offers a home loan eligibility calculator that can help you determine your eligibility for a home loan.
- Calculate your loan amount: Use a home loan EMI calculator to determine the loan amount you can afford based on your income, expenses, and other factors. NoBroker offers a home loan EMI calculator that can help you determine your loan amount and EMI.
- Compare interest rates: Compare interest rates offered by different banks and financial institutions before choosing a lender. NoBroker offers home loans from multiple lenders, allowing you to choose the best interest rate for your home loan.
- Choose a loan tenure: Choose a loan tenure that is convenient for you. NoBroker offers flexible loan tenures ranging from 1 year to 30 years, giving you the freedom to choose a tenure that suits your needs.
- Gather necessary documents: Gather all the necessary documents such as identity proof, address proof, income proof, and property documents before applying for a home loan. NoBroker offers assistance in document collection and processing, making it easier for you to apply for a home loan.
Tax deductions For Home Loan
Every individual who repays the home loan with interest is liable for certain tax deductions. However, the maximum limit on tax deductions for women is higher than for men. Men get a maximum tax deduction of Rs. 1,50,000 on principal and interest repayment, while women get a maximum tax deduction of Rs. 2,00,000.
Read: Indiabulls Home Loan Interest Rates – Updated in April 2024
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Extended Tenure for Loan Repayment
Home loans can go on for a long time. Usually, the loan repayment tenure is around 25 years, but a home loan for women can be repaid in 30 years or till the applicant turns 70 years of age, whichever happens first. This helps women lower their monthly EMIs, thus giving them a significant advantage by reducing the risk of foreclosure.
Comparatively Lower Interest Rate
Lenders have noticed that women borrowers tend to be more reliable and have a better credit history. Therefore, to encourage women to buy property, the women’s home loan interest rate is lowered by 0.05 to 0.1 per cent. Considering the amount and home loan tenure, this minute percentage can help lower the monthly EMIs and reduce the financial burden for women.
Women, Beware of These Charges: Hidden Charges in Home Loans for Women
Are you a woman planning to take a home loan? While it may seem like a great opportunity to own a home, there are hidden charges that you need to be aware of before signing on the dotted line. Here are some of the hidden charges in home loans for women:
- Processing Fees: Many banks charge processing fees to process your loan application. While some banks have waived off processing fees for women, others may charge you anywhere between 0.5% to 1% of the loan amount. NoBroker home loan services offer home loan schemes for ladies with no processing fees, making it easier for you to apply for a home loan.
- Prepayment Charges: In case you plan to prepay your home loan, some banks may charge you a prepayment penalty. This penalty can be up to 2-3% of the outstanding loan amount. NoBroker offers home loans with zero prepayment charges, giving you the flexibility to prepay your home loan without any additional cost.
- Legal and Technical Charges: Some banks may charge legal and technical fees for verifying your property documents and conducting a technical inspection of the property. These charges can add up to 1-2% of the loan amount. At NoBroker, we offer home loans with zero legal and technical charges, making it easier for you to buy your dream home.
- Insurance Charges: Many banks require you to purchase a home insurance policy before they disburse your home loan amount. These insurance charges can be an additional burden, ranging anywhere between 0.5% to 1% of the loan amount. NoBroker offers home loans with optional insurance, giving you the freedom to choose the insurance policy that suits your needs.
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Home Loan Subsidy for Females: Unlock the Power of Home Loan Subsidy for Women
The government of India has launched various home loan schemes for women to encourage them to become homeowners. These schemes offer home loan subsidies, reduced interest rates, and other benefits to make it easier for women to buy their dream homes. Here are some of the home loan schemes for women by the Modi government:
- Pradhan Mantri Awas Yojana (PMAY): This scheme provides affordable housing solutions to women from the economically weaker sections, lower-income groups, and middle-income groups. Women can avail of a subsidy of up to Rs 2.67 lakh on their home loans under this scheme. NoBroker offers assistance in availing of the PMAY subsidy, making it easier for women to buy their dream homes.
- Mudra Yojana: This scheme offers loans up to Rs 10 lakhs to women entrepreneurs for setting up or expanding their businesses. Women can use this loan to purchase a property and avail of the benefits of a home loan. NoBroker offers home loans to women entrepreneurs under the Mudra Yojana scheme, helping them achieve their dream of owning a home.
- Nari Shakti Puraskar: This award recognizes the contribution of women in various fields, including real estate. Women who have made significant contributions to the real estate industry can apply for this award and receive a cash prize. NoBroker celebrates women’s contribution to the real estate industry and offers home loans with reduced interest rates to women who have received this award.
Women in India have been progressing at a much quicker pace in the past two decades. A lot more millennial women are stepping up and taking on financial responsibilities as well. Even though the financial status of men and women is still not deemed equal in many parts, the government of India and multiple banking institutions provide special offers on home loans for women to promote financial and economic equality in the country.
If you are looking for the home of your dreams and planning a budget to pay for it, NoBroker can help you with your requirements. Here you will find the best offers on residential properties and financial counselling, all for a minimal cost.
Top Indian Bank Home Loan Intrest Rates
Frequently Asked Questions
Q1. Can I finance 100% of the property value on a home loan?
Ans. No, banks do not provide 100% home loan amounts. You will have to finance 10-30% of the property value yourself.
Q2. What is the usual difference between home loan interest for men and women?
Ans. Usually, women get a discount of 5 to 10 basis points on the home loan interest rate.
Q3. What is the maximum repayment tenure for women?
Ans. Most banks have set the maximum repayment tenure for women as 30 years.
Q4. Is there a home loan for housewives who do not have a stable source of income?
Ans. Yes, homemakers can avail of home loans by using gold, property, or fixed deposits as collateral.
Q5. Who sets the stamp duty rates?
Ans. The state government is responsible for deciding the stamp duty rates.
Q6. Which bank offers the lowest home loan interest rates in Bangalore?
Ans. Bank of Baroda offers one of the lowest interest rates on Home loans in Bangalore at a rate of 6.85%.
