What Are the Benefits of Being a Woman Home Borrower

Nowadays, women come across as equal participants in the field of investment in properties and other assets. Long gone are those days when just men took financial decisions for buying properties. Today women too are coming across as sensible investors with lower default rates. In the case you are a woman looking to buy a residential flat, do not worry anymore as various lenders like YES bank home loan, Indiabulls home loan, Axis home loan, etc. provide special rates and offers to women home loan borrowers. 

Future planning – 

With increasing inflation, it is difficult to sustain without adequate savings. Women also have realised the necessity of savings and investing money for the future. Not only for themselves, but they are also aware that they must take the charge to save funds for their dependents too. A lower rate of interest provided to women encourages an increasing number of women to invest in distinct sectors ranging from gold, and properties to businesses. 

Benefits of women borrowers – 

Financing a home or property can come across as a major financial responsibility. A home loan can come across as an effective source to make long-term decisions and commitments. While joint borrowing can allow ease off the burden a little, women must have individual freedom when it is about owning a home. Creating an asset base can allow women to secure their future. 

What are the positives of women home borrowers in India?

  • Combined income of both spouses endows higher chances of qualifying for a home credit option. 
  • Joint home loan permits a considerably higher tax deduction. 
  • Women are looked upon as eligible home loan applicants as they are considered to repay their outstanding dues timely. 
  • Many lenders are providing home loans, particularly to women at a lower interest rate. 

However, to avail an exclusive rate on a home loan, a woman must be either a co-owner of the home or become a primary applicant. 

Concessional home loan interest rates to women – 

Due to the lower credit risk profile as compared to men, women enjoy better and lower rates from distinct lenders. As rates of the home loan are linked directly with the applicant’s risk profile, women tend to get a concession on home loan deals. However, note that regardless of gender, the lender does not provide any home loan if the score is unsatisfactory. Also, the documents required must be offered to the lender to qualify for the home loan. 

Exclusive home loan deals for women borrowers – 

There are many lenders who have introduced exclusive home loan deals for women. HDFC bank’s women power loan and SBI’s Her Ghar loan for women are certain examples of home loan deals particularly designed for women borrowers at discounted interest rates. A few states even offer additional advantages to women wherein they can get a home loan at a lower home registration fee than their men counterparts. 

While all lenders do not offer special offers and schemes, their preferred choice often is women for the home loan. Women, as loan applicants and co-applicants are looked upon as safer bets. 

Some home loan benefits, you must be well-versed with

A few of the crucial parameters that prove advantageous for women borrowers are – 

Home loan rate of interest – 

The home loan rate is one of the crucial parameters that determine whether it will come across as an economical deal for you. Even a minor difference in your rate of interest on a home loan can have a massive impact on your EMIs (equated monthly instalments). If you are availing a home loan of a massive amount, a concessional rate of interest can assist you to save a considerable amount over the long term. So, in the case, you are a woman, then you can either become a primary applicant or co-applicant and enjoy lower home loan rates without making it a burdensome deal. 

Joint eligibility – 

While you place an application for a home loan, your eligibility plays an important role in getting your loan approval. Many lenders provide loans which are usually 55-65 times your net income every month. Besides your income, your past credit record, and repayment potential even helps in increasing your eligibility for a home loan. With an increase in property costs, it is a benefit to be able to qualify for a loan of a higher value. 

By placing an application jointly for a home loan or by co-borrowing, you may ascertain the financial institution of a considerably more stable status financially in the future. Besides husband-and-wife co-borrowing, other possible co-borrowing combinations permitted by most lenders are father and unmarried daughter, mother and unmarried daughter and brother and sister. 

Tax benefits – 

When opting for a joint home loan, the payout might tend to become huge. However, when claiming the tax deduction, tax benefits may even be doubled for every joint applicant. Joint borrowing can even enhance tax exemptions when property bought using a home loan is let out. 

Few of the popular home loan women schemes that were previously launched in support of women – 

Her Ghar – SBI

SBI provides a special women’s home loan scheme known as Her Ghar where women can get a rate of interest of as little as 9.50 per cent. In such a scheme, the processing charge is even waived for the women borrowers. 

Tata housing – 

Tata Housing has been started in collab with SBI also known as a scheme just for women borrowers. As per this home loan scheme, women borrowers just need to provide 20 per cent of the property’s cost and the rest 80 per cent can be paid upfront post-possession. 

HDFC – Women power – 

HDFC has even started Women Power wherein home loans are offered at a rate of interest of 9.85 per cent. Also, this is made available to the co-owners or sole owners of the property. Women’s power schemes can even be taken up by women without showing any income.

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