Mortgage for women

Buying a home is a big milestone. Most women looking to buy a home take out a mortgage to finance their dreams. Women are more likely to be approved for a mortgage and there are many benefits associated with it. Many banks and non-bank financial institutions (NBFIs) offer competitive mortgage rates specifically for women.

Here’s everything you need to know about Indian women’s home loans.

How a home loan for women works

Women are seen as more reliable borrowers by lenders. Interest rates are several basis points lower than market rates for women. Subsidized mortgage interest rates can be 0.05% to 0.1% lower, but have a significant impact on your Equalized Monthly Installment Payments (EMI), reducing your repayments. Women are more likely to accept a loan because they have a significantly lower default rate than male borrowers.

Some of the benefits women get when applying for a home loan include:

reduction of stamp duty

According to the Indian government, women who take out mortgages are entitled to a stamp duty rebate of 1% to 2%. With a house valued at INR 50 lakh, this benefit can save her INR 1,000,000 from INR 50,000.

preferential tax treatment

Both male and female borrowers are eligible for tax credits when paying off their loans. For male borrowers, the maximum allowed deduction for repayment of principal and interest is INR 1,50,000 while for female borrowers, it is INR 2,00,000. For example, a wife who jointly applies for a mortgage with her husband is also eligible for tax benefits.

Pradhan Mantri Awas Yojana (PMAY)

To be eligible for Pradhan Mantri Awas Yojana’s Rs 2.67 lakh home purchase subsidy, a woman must be a co-owner. The program is also intended to provide mortgage benefits to widows and single women who fall into the Low Income Group (LIG) and Economically Weak Section (EWS) categories.

Priority Applicants

Years of loan data analysis show that female borrowers have lower loan failure rates than male borrowers. This feature also improves the chances of your loan application being accepted. Historical patterns show that women are more likely to save, refrain from unnecessary debt, and be more careful with their household finances. Financial institutions are keen to lend money to female homebuyers because of all these benefits.

Personalized Home Finance Program

Lenders are developing tailored mortgage programs with terms favorable to female borrowers, including longer repayment terms, fewer limits, and lower interest rates, to make the home-buying process easier.

Special discount from developers

Many developers also offer various schemes and discounts for female borrowers. Lower booking prices, subsidies and stamp duty exemptions are just some of the benefits developers offer female borrowers.

Discounts are also available for non-working female borrowers

Even non-working female borrowers can take advantage of the various benefits of women’s mortgages. They must have a professional working as a co-applicant.

Mortgages for Men and Mortgages for Women

Suppose 35-year-old Mr. Ramesh is applying for a Rs.50,000 home loan from a bank. The loan term is 20 years. He was offered a loan at an interest rate of 8.65% per annum.

At the same time, Ms Malini, a 35-year-old woman, also wants to apply for a home loan of the same amount. She has also been issued a 20-year tenure loan. Since she is a woman, she receives her 8.60% interest rate which is 0.05% lower.

Now let’s compare the cash benefits. Mr Ramesh’s interest outflow amounts to INR 55,28,083 during his tenure. On the other hand, Mr Mailini’s interest is his INR 54,89,953. She saves her INR 38,130 on her total interest expense.

On top of that, you can also save on stamp duty.

Women’s Mortgage Eligibility Criteria

Women must be able to meet the requirements set by financial institutions before they can approve a home loan. Mortgages for women are subject to the following simple minimum conditions:

  • She must be an Indian national.
  • Her age must be between 20 and 60.
  • At least 2 years of work experience is required.
  • A credit score of 650 or higher is required.
  • A monthly household income of at least INR 15,000.

Required Documents for Women’s Mortgage

The list of required documents may vary depending on the financial institution to which you are applying, but here are some general requirements. These include:

  • You must complete your mortgage application by following certain guidelines.
  • PAN cards, passports, Aadhar cards and licenses serve as identification documents.
  • PAN cards, passports, Aadhar cards and licenses serve as identification documents.
  • Passport size photo.
  • financial statements.
  • Salary slips for the past 3 months (for salaried workers).
  • Company information, such as income tax returns and employment verification.

Challenges when applying for a mortgage

As with everything else, there are some loopholes when applying for a home loan as a woman. Anecdotal evidence suggests that unmarried women may find it more difficult.

Some reports suggest that single women are much more likely to be asked to co-apply than married women. It seems that some people are.

Conclusion

Women have many advantages when applying for a mortgage. However, we recommend that you consider all your options and the various perks that are available to you before getting approved for a loan.

Before deciding to apply for a mortgage, think about the ideal time to buy. Explore government programs that offer interest rate subsidies, attractive housing costs, and regulatory transparency for first-time female homebuyers to make it an ideal time for women to own property in India.

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