SYNOPSIS

Prompted by government incentives and societal changes women home ownership is on the rise in India.
From time to time, Financial Institutions also come out with special offerrs for women applicants.
By clubbing the income of woman co-borrower the total loan amount can increase resulting in a higher loan eligibility.
All these factors point to the fact that India is entering an era where more women will have a house to their name.

As more and more women in the country become financially independent, they are also weighing in on big decisions of life like purchasing a home for their families. This has resulted in home loan providers extending some unique home loan benefits for ladies and creating special schemes, from time to time, help women own homes.

Home loan benefits for women in India

Home loan benefits for ladies are multi-fold. Women are recognizing this and are opting to take a home loan. Here are some benefits:

1. Women benefit as co-borrowers: Women can apply as both borrower and co-borrowers. Combined income of the borrower and co-borrower can increase the loan eligibility can mean a higher loan eligibility and more flexibility in choosing a suitable home for the family. Furthermore, women too enjoy a tax deduction on the home loan repayments with the maximum deduction allowed in principal as well as the interest at Rs. 1.5 lakh and Rs. 2 lakh respectively¹.

2. Lower stamp duty: The central as well as state governments are encouraging home ownership for women as well. Home loan benefits for female include lower stamp duty charges by 1-2% by many state governments. A woman can thus save Rs. 80,000-Rs. 1,60,000 on a property worth Rs. 80 lakh.

3. Higher chances of getting approval: It has been observed that having a as a pplicant/co-applicant positively impacts the chances of getting a loan approved. This observation stems from various factors, including women's demonstrated habits of disciplined saving, a tendency to avoid unnecessary debt, and their prudent management of finances. Moreover, data reveal lower default rates among women borrowers, further bolstering the confidence of financial institutions in extending home loan offers to them. Consequently, these favorable attributes have prompted the financial institutions in catering specifically to the housing finance needs of women.

Reasons for women to avail a Home Loan

Women should consider taking a home loan because of a number of factors :

Preferred Customers: Data analytics of many lending institutions indicates that loan default among women applicants is lower. Thus, a woman’s chances of being approved for a home loan are higher.

Specialized schemes : Lenders are encouraging women to move towards becoming home owners and are launching limited period schemes as well as offering lower interest rates targeted at women.

Right time to buy: Women should consider buying a home as this is the right time to buy a home in India:

1. Attractive prices: The real estate sector today offers quality properties at attractive prices, which makes it the right time to consider buying a home.

2. Regulatory transparency: The Real Estate Regulation and Development Act (RERA) has ushered in an era of increased regulatory transparency in Indian real estate.

Women today have a clear path to home ownership and with supportive financial institutions and government on their side, they can work their way to their dream home with ease.