applying for a Home Loan

Benefits for Women applying for a Home Loan

Around a decade ago, it was unusual for women to take a decision pertaining to finance. Most of the women even the working ones were heavily reliant on men when it came to financial investments such as insurance, investment and taxation. The only form of investment in which women actively used to take part was buying gold. However, the investment landscape has changed in recent years. Back to back initiatives taken by the ruling governments to encourage women to invest in financial sectors has paid off.

More women are inclined towards investing and making the decision independently. The situation has changed considerably, and women nowadays are open to taking risks and investing in not just financial market but real estate market as well. To encourage it even further, financial institutions are offering exclusive benefits to women to enhance their involvement. Among the benefits that are being offered to women, here are several outlining ones:

Rate of Interest:

When applying for a Home Loan, the rate of interest is considered to be one of the most pivotal factors. The interest rate differs from lender to lender, and almost every lender is providing benefits to borrowers who are women. Most of the financial institutions provide a discount of 0.05% interest to benefit women Home Loan borrower. The percentage might look pretty small, however, when it is compared to the bigger picture, it plays a significant role. The cost of the property is quite high, and even a number such as 0.05% makes a massive difference. Due of the lower interest rate, the EMI will be less and so will the financial burden when it comes to monthly repayment.

Concessions:

Every transaction related to property requires an investor to pay Stamp Duty charges to the State Government. It is one of the money components which differ from state to state. The amount that has to be paid is decided by the State Government. Government initiatives that help and encourage women investors include charging lower stamp duty rate when she opts to buy property as a sole borrower. The rate of interest that is charged by the government is 1-2% lower than the usual Stamp Duty rate. Apart from that, even if co-borrowing is opted for, discounts can still be availed.

Smooth Loan:

The loan process is same for both male and female applicants. It is a fixed process which involves the applicant to check eligibility and clear it. Once that is done, then he/she can avail a Home Loan. To ensure that this process passes smoothly, the borrower has to submit all the essential documents and identity proofs. Apart from this, a satisfactory credit score is essential. One thing which is noteworthy is that the ratio of women applications getting rejected is way less than men. It is mainly because women are more successful in repaying the Home Loans as compared to male counterparts.

Digitization:

The process of digitisation of financial services has made borrowing a Home Loan quite comfortable. The online service helps women to apply for a Home Loan as per their convenience. Thus, the process is no longer physically daunting.

Tax Benefits:

A woman, Home Loan applicant, can avail tax deduction of INR 2 lakhs. As per the Budget 2017, a woman borrower can claim a tax deduction on interest earned. Apart from that, if a Home Loan is co-borrowed between the married couple, then both of them can enjoy tax benefits on Home Loan. Opting for co-borrowing is a wise choice as it helps to share the burden of debt.

These are few of the factors that a woman Home Loan buyer shall consider to make the most out of it.