Are you looking to avail a home loan in India? Pause! Here are the top three benefits that you gain by allowing the woman in your family to be the primary applicant of the loan.
India boasts of several high-profile women in the most prestigious jobs in the country. President, chief minister, politicians, judges, lawyers, professors, self-made billionaires, CEOs and many more – the hats worn by women in our country are as varied as the diversity of our nation.
Yet, India was and is home to gender inequality. After all, SMEs and start-ups owned by women are 250% more likely to be rejected for a business loan application compared to SMEs owned by their male counterparts.
Home Loans Tailored to Benefit Women
Successive governments have introduced several revolutionary policies to level the playing field and to remove this gender bias. They have introduced policies that empower women and help in financial inclusion of women across the nation. And, owning a home is a great way to feel financially secure.
Consequently, banks and other financial institutions have introduced several schemes for women to feel empowered and financially independent. And, one of the biggest benefits for women borrowers can be seen while taking a home loan in their name.
Here are the three significant benefits of home loans for women borrowers:
- Enjoy Lower Interest Rates
One of the biggest deciding factors that influence the final amount you have to pay as EMI is undoubtedly the interest rate. Home loans, generally last for a long tenure and even a slight change in the interest rate goes a long way in either increasing or decreasing the loan burden.
Generally, most financial institutions offer lower interest rates for women borrowers when compared to their male counterparts. So, it makes sense to borrow in the name of the woman in your household to reduce your EMI amounts.
- Improved Chances of Loan Eligibility and Approval
All lenders have different procedures to scrutinise a loan application before they approve it. This involves the applicant meeting the eligibility criteria set by the lender, the verification of the required documents and other proofs, and of course, a healthy credit score. The CIBIL score is a rating that determines your creditworthiness. The higher the score, the better are your chances of the loan getting approved.
With all said, financial institutions consider women as less risky borrowers compared to their male counterparts. They assume that women are more likely to pay regular EMIs, thereby reducing their chances of defaulting.
Though factors like age, salary, and other factors play a role in determining your eligibility, your gender too plays a vital factor in it. This means home loans are likely to get approved when a woman is a sole applicant or a primary applicant in a joint venture.
- Lower Stamp Duty
While the lender doesn’t determine this value directly, it comes under the ambit of a home loan. The stamp duty is under the discretion of the state government, and each state has varying amounts. While there’s no official rule in place, most states offer lower stamp duty rates when women buy property either as co-owners or sole-buyers.
Though the concession offered to women buyers is somewhere around 1 or 2% less on stamp duty, it impacts the overall loan amount significantly, offering huge savings.
Several banks and other financial institutions have introduced special home loan options exclusively for women. The Grihalakshmi loan from Grihashakti, and the likes from other financial institutions aim to offer loans to women at concessional rates.
So, ladies go ahead and purchase your dream property and make use of the several concessions on home loans available to women.