2 min read
25 May 2021

With more women becoming financially independent, there has been an increase in women borrowers for home loans. As a result, it has increased the number of home loan schemes available to women. The additional benefits like simple eligibility and lower interest rate provided to women who apply for home loans have played a significant role in encouraging women borrowers and has empowered them to invest in property and become homeowners. Here’s why customised home loans for women are popular and what woman home loan borrowers can benefit from under current laws.

Women borrowers pay lower interest rates

Lenders believe women to be more reliable as borrowers, and to encourage them to own assets like property, lenders offer special home loan interest rates that are a few points lower than the market rate. While the subsidised home loan interest rates may be only 0.05% to 0.1% lower, it significantly impacts the EMI and makes repayment more stress-free for women.

Additional Read: How to buy a home with a low down payment

Women can access high amounts with simple eligibility criteria

You can access high loan amounts from Rs. 30 lakh to Rs. 10.50 crore* and even more to buy a home of your choice, with lenders increasing their sanctions to attract women borrowers. Combining this with simple eligibility criteria makes applying for a home loan easier for you. For example, Bajaj Finserv’s Home Loan for Women requires you to be an Indian citizen between 23 years and 70 years with work experience of 3 years to be eligible for a home loan.

Women can choose longer repayment tenors

Further, you can repay your home loan at ease within a tenor of up to 40 years. It gives you a chance to lower your EMIs and thus reduce the pressure on your finances, helping you take care of other commitments while paying off your home loan. With no charges levied on making part-prepayments and foreclosing your loan, you can experience more convenience as a woman borrower.

Women pay lower stamp duty and claim tax deductions

If a woman registers the house in her name, the stamp duty charges may be 1%–2% lower than that charged to male buyers by most state governments. Though 1–2% may seem like a nominal amount, while considering the total cost of the property and calculating 1%–2% of the same, the amount saved is quite substantial. You can further benefit from a home loan if you are a woman borrower by making the most of tax deductions. You can claim up to Rs. 1.5 lakh and Rs. 2 lakh on principal and interest repayment for a self-occupied home.

Additional Read: Stamping and franking charges on home loans: Know the difference

Women can make use of schemes like PMAY

The Pradhan Mantri Awas Yojana (PMAY) makes your co-ownership mandatory, offering you an interest subsidy up to Rs. 2.67 lakh. It also gives preference to women applicants, causing a 6% rise in the number of women applying for a home loan in India.

Move towards financial independence and purchase your own home with a customised home loan for women. Use the Home Loan Eligibility Calculator to see if you qualify and get started now.

Bajaj Finserv brings you Home Loan Eligibility Calculator, business loans, and a host of other financial products. Not only does this simplify the process of availing of financing, but also helps you save on time. All you have to do is share a few basic details and check out your pre-approved offer.

Need instant financing? Do it with Bajaj Finserv.

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Frequently asked questions

Are there any advantages or incentives for women in home loans?

Advantages and incentives for women in home loans can include lower interest rates, stamp duty discounts, higher loan eligibility, easier access to credit, joint ownership benefits, subsidies, grants, tax deductions, and financial literacy programs. These programs aim to promote gender equality and empower women in homeownership, but their availability varies by location and financial institutions. Women interested in these benefits should research and inquire with local banks and government authorities for specific details and eligibility criteria.

What is the interest rate benefit for women?

The interest rate benefit for women in home loans involves offering lower interest rates compared to rates for male borrowers. This is done to promote gender equality and make homeownership more affordable. The specific rate reduction varies by lender and aims to incentivize women to take out home loans. To benefit from this advantage, women should compare offers from different lenders to find the most favorable interest rate for their specific financial situation.