According to a report, the average ticket size of housing loans among female borrowers saw a 7.4% growth in FY21.
This demand can be attributed to the low-interest rate and the need for private living space due to work from home culture. Additionally, certain lending institutions extend effective offers and benefits to encourage female homeownership.
To make the most of such perks, potential female borrowers must check the top benefits and how to apply for home loan when the terms are compatible.
What are the top benefits women can gain by availing a home loan?
Female housing loan borrowers can avail substantial credit to purchase a residence of their choice.
However, it is imperative to know that the borrower’s profile and chosen tenor can influence the loan amount approved. This factor will depend on a lending institution and its policy.
Nevertheless, the said credit form offers some lucrative benefits to women applicants, including:
- Simple loan eligibility
According to a report, nearly 61% of women consumers have a credit score greater than 720 and good repayment history. This is a reason why lending institutions set simple housing loan eligibility for women applicants.
The basic parameters a salaried female need to fulfil include-
- An applicant must be between 23 to 62 years of age
- He/she must have a minimum of three years of professional experience
- A salaried applicant should have a stable income flow and Indian residency
Self-employed applicants need to have-
- Individuals should fall in the age bracket of 25 to 70 years
- A self-employed applicant must have a minimum of five years of business continuity and Indian citizenship.
Maintaining a 750+ CIBIL score for home loan and credible repayment history further helps gain considerable advances from a lending institution.
- Feasible interest rate
Many lending institutions offer an affordable housing loan interest rate against a home loan for women borrowers. They can receive considerable credit against subsidised repayment terms. This facility helps make borrowing more affordable and initiate savings.
For instance, a woman and man availing a home loan of Rs.40 lakh for seven years. A lending institution levies a 7% interest to a female borrower while a male has to repay a 7.1% interest for the same borrowing.
Here the difference in repayment shows the lucrative benefits of home loans for women in India.
A male borrower is obligated to pay total interest of Rs.10,88,000 approximately, while the total payable will be Rs.50,88,000 approximately. Comparatively, a female borrower has to repay a total interest of Rs.10,72,000 approx, and the total payable amount will be Rs.50,72,000 approx.
Additionally, the State Government reduces the stamp duty on a property for female buyers. This leverages the scale of the saving and makes housing loans a lucrative option.
- Tax benefits
Women home loan borrowers are also entitled to gain tax benefits under Income Tax Act, 1961. They can claim deductions on interest repaid of up to Rs.2 lakh every year under Section 24(b).
They are eligible to gain an additional deduction of up to Rs.1.5 lakh each year under Section 80C.
However, they have to fulfil certain criteria specified to gain these benefits. They can also double their tax benefits by applying for a joint housing loan with their spouse. Hence, both the earning members will be eligible to gain tax benefits.
In this regard, keeping the documents required for a housing loan and tax claims handy will streamline the housing loan process.
Apart from the mentioned benefits, female borrowers can gain personalised offers from lending institutions. For instance, leading financers extend pre-approved offers that make loan applications hassle-free.
These offers are usually available on financial products like a home loan, loan against property, etc. Check your pre-approved offer by entering your name and contact number.
These are some of the benefits a female housing loan borrower can enjoy. It is recommended to compare the terms and loan offerings before selecting a lending institution. This will make the borrowing successful.