Buying a home is everybody’s dream. Recently it is seen that most women willing to buy homes are turning to home loans in order to finance their dream. In India, it is comparatively easier for women to get a home loan approved compared to their male counterparts, and there are many benefits associated with it. Various banks, non-banking financial institutions (NBFIs), and mortgage lenders offer female applicants exclusive and competitive home loan interest rates.
This helps reduce the Equated Monthly Instalment (EMIs) amounts resulting in significant cost reductions during the loan’s tenure.
In this article, we will discuss a few banks which provide concessions to women applicants for home loans.
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State Bank of India
According to the SBI website, the State Bank of India gives a concession of 5 basis points (bps) to women home loan borrowers. The interest rate for women ranges from 9.15 to 10.15% based on the credit score.
HDFC
HDFC bank gives women borrowers a 5 bps discount on home loans. Interest rates for women applicants range from 8.95% to 9.85% depending on the loan amount and credit score.
Canara Bank
Canara Bank offers a concession of 5 basis points to women borrowers. The bank’s home loan interest rates start from 8.85%.
Union Bank of India
Union Bank of India gives a concession of 5bps for women borrowers. The bank Website says, “Union bank of India offer 0.05 % concession in the applicable rate of interest where female applicant/s stands as borrowers/co-borrowers in the loan and owner/co-owner in the proposed housing property.”
Additional Benefits For Women Borrowers:
Lower stamp duty
Stamp duty is seen as an extra expense that increases the price of the property. In order to o encourage women to buy property, various Indian states offer a 1% to 2% stamp duty rebate for women who apply for home loans.
Tax Deductions:
Women do not get separate tax breaks repayment of home loan repayment. The tax break is available for everyone is:
For principal repayment and interest payments, the maximum tax deduction is Rs 1.5 lakh and Rs 2 lakh, respectively.
If a husband and wife together own property and each one of them has a different source of income, the duo may be entitled to get tax benefits.
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Eligibility Criteria For Women To Get A Home Loan:
It is only after a woman meets the requirements fixed by any financial institution, that she gets the home loan approved. The minimal and straightforward requirements that apply to home loans for women include:
· She should be an Indian national.
· The women applicant should be between 20 and 60 years.
· She should possess a minimum of two years of work experience.
· A credit score of nothing below 650 is required.
· The monthly family income should not be less than Rs. 15,000.
