Top 5 Home Loan Benefits for First-time Woman Buyers_Banner_WC

Banner-Dynamic-Scroll-CockpitMenu_HomeLoan

Top 5 Home Loan Benefits for First-time Woman Buyers_WC

5 min 24 Jul 2023
Highlights:
  • Home Loan Benefits for Ladies in India
  • Top 5 Advantages of First-Time Homebuyers in India
  • Home Loan Eligibility Criteria for Women
  • Documents Required to Avail of Home Loan for Women
  • How to Avail of Home Loan for Women?

With women recognizing their true potential and becoming financially independent, the demand for loans has gone up by quite a margin. They are now weighing in on major life decisions, such as purchasing a house or investing in properties. This has led various lending institutions to come up with exclusive Home Loan for women offering a host of benefits for first first-time homebuyers. Read on to know about the top Home Loan benefits for ladies.

Home Loan Benefits for Ladies in India 

Banks and financial institutions in India offer various schemes and exclusive Home Loan benefits for women to encourage them to invest in assets. Here is a look at the top ones – 

1. Preferential Home Loan Interest Rate  

Lenders usually see women as more reliable borrowers and willingly offer relatively cheaper Home Loan interest rate. While the subsidized rate of interest may be lower by only about 0.05-0.1%, it majorly affects the overall monthly installments, making it easier and more convenient for ladies to repay the loan amount. 

2. Home Loan Tax Benefits 

Lenders also offer income tax rebates for women on Home Loan repayments. As per the Income Tax Act Section 80C and Section 24, a maximum amount of INR 1.5 Lakh and INR 2 Lakh are deductible on principal amount and interest repayment respectively. Besides, if the woman is married, both partners having their own sources of income and co-ownership of the property are eligible for tax deductions.  

3. Reduced Stamp Duty 

The government charges 1-2% lesser stamp duty on Home Loan for women than for male counterparts. Although the rate may seem nominal, it accounts for a substantial amount considering the total property cost. For instance, as a first-time homebuyer, a woman can save up to INR 1.6 Lakh on a property that is worth INR 80 Lakh. 

4. Repayment Tenor

One of the many Home Loan benefits for ladies is the longer repayment tenor. An extended loan tenor of up to 40 years offers a fairer chance of repayment as it lowers the Home Loan EMIs and reduces the financial burden, making it easier for women to settle the entire amount while taking care of other commitments. Besides, with zero part-prepayment and foreclosure charges for a Home Loan availed on a floating rate of interest, women can enjoy more convenience.

5. Higher Loan Amount

With lending institutions increasing sanctions to attract female homebuyers, women can get a high loan amount of up to INR 50 Crores* to purchase a property. This combined with simpler home loan eligibility makes it easier for women to apply for a home loan. For instance, some of the best home loan providers require citizens to be between 23 and 75 years** of age with 3+ years of work experience to be able to get a Home Loan in India. 

Top 5 Advantages of First-Time Homebuyers in India 

For first-time homebuyers in India, here is a list of advantages that all women borrowers must be aware of – 

1. PMAY Scheme 

Apart from the ones listed above, the Pradhan Mantri Awas Yojana (PMAY) Scheme also offers major Home Loan benefits for ladies. It mandates co-ownership for all females serving as head of the family. In the Lower Income Group (LIG) and Economically Weaker Sections (EWS) categories, these Home Loan benefits for ladies are extended to single women and widows as well. 

2. Claim Period

Earlier, only borrowers with self-occupied residencies could claim tax benefits on properties built within 3 years of the date of sanction of the Home Loan. Following the budget of 2016, this claim period has been relaxed to 5 years to keep up with the real estate market changes in India. 

3. RERA 2016 

The Real Estate Regulation Act (RERA) benefits first-time homebuyers in various ways, starting from rights and data transparency to standardized measures for a property (like carpet area) and regulations on insolvency etc. It helps to keep a check on the incompetence of the builders and regulate the sector to increase the buyer’s stakes. 

4. GST on Housing Subsidy  

One of the many first-time homebuyer benefits is having a 8% GST on housing subsidies. Earlier, a GST rate of 12% was levied on houses purchased under the Pradhan Mantri Awas Yojana Scheme (PMAYS). This enables a first-time buyer with a family income of INR 18 Lakh to benefit up to INR. 2.7 Lakh instead of INR 2.5 Lakh while purchasing a property. 

5. New Income Slabs on Subsidy 

Under the PMAY Scheme, two new income slabs have been brought into existence wherein buyers with an annual income of INR 12 Lakh are offered a subsidy of 4% on a principal amount of INR 9 Lakh and those with an annual income of INR 18 Lakh are charged with a 3% subsidy on a principal amount of INR 12 Lakh. 

Home Loan Eligibility Criteria for Women

The eligibility criteria for women to avail of a Home Loan in India are much simpler. Most financial institutions have the following set of parameters to determine the eligibility of first-time female borrowers –

Parameters 

Eligibility Criteria 

Nationality 

Indian 

Age 

Salaried Borrowers: 23-75 years**

Self-employed Borrowers: 25-70 years**

Employment Status 

Salaried Borrowers: Minimum 3 years of work experience in the public/private sectors or MNCs 

Self-employed Borrowers: Minimum 5 years of business continuity 

CIBIL Score 

750+ 

**The upper age limit is considered as age at the time of loan maturity. Additionally, the upper age limit for applicants is subject to change, depending on the property profile.

Documents Required to Avail of Home Loan for Women

One of the most important aspects of applying for a housing loan is the documentation process. While the tedious paperwork may seem dreadful to many, the documentation process for women is a lot more hassle-free provided the above eligibility criteria are met. The following set of documents are required to avail a Home Loan in India –

  • Mandatory documents such as PAN card or Form 60

  • ID Proof – PAN card, Aadhaar Card, Driving License, Passport, Voter’s ID 
  • Residential Proof – Aadhaar Card, Ration Card, Passport, Utility Bills etc.  
  • Proof of Income – Salary slip of last 6 months, bank account statement of last 3 months, Income Tax Returns  
  • Passport sized photographs  

Note: Additional documents might be required during loan processing.  

How to Avail of Home Loan for Women

The steps to apply for a Home Loan for women are simple and straightforward. The easiest and most convenient way to apply is to go online as it speeds up the entire process. Check out the step-by-step guide to avail of a housing loan from the top lenders – 

  • Visit your preferred lender’s website 
  • Go to the ‘Home Loans for Women – Apply Online’ tab  
  • Key in the required details and provide the shared OTP (One-Time Password) 
  • Use the online Home Loan EMI calculator to assess the best suited loan amount and repayment tenor 
  • Fill in your personal, financial and employment details and submit along with the relevant documents (as stated above) 
  • Wait for an authorized representative to get in touch to verify the details and documents 
  • Get the loan approved and sanctioned  
  • Get the amount disbursed to the account in 3-4 working days

Conclusion

Women taking on property and financial decisions has led various financial providers to offer a great number of Home Loan benefits for ladies. Cheaper Home Loan interest rates, income tax rebates for women, higher loan amount and repayment tenor etc. are among the top advantages of availing of a housing loan. For first-time homebuyers, additional and exciting features are offered as well. Check out the eligibility criteria and documents needed for loan buyers before applying online. The sanctioned amount is usually disbursed in 3-4 working days.

Blog-Intro-Disclaimer

DISCLAIMER:

While care is taken to update the information, products, and services included in or available on our website and related platforms/websites, there may be inadvertent errors or delays in updating the information. The material contained in this website and on associated web pages, is for reference and general information purposes, and the details mentioned in the respective product/service document shall prevail in case of any inconsistency. Users should seek professional advice before acting on the basis of the information contained herein. Please take an informed decision with respect to any product or service after going through the relevant product/service document and applicable terms and conditions. Neither Bajaj Housing Finance Limited nor any of its agents/associates/affiliates shall be liable for any act or omission of the Users relying on the information contained on this website and on associated web pages. In case any inconsistencies are observed, please click on contact information.

Asset Publisher

Trending Articles
alt
home+loan Home Loan

[N][T][T][N][T]

How to Pay Off Your Home Loan Quicker
2022-06-29 | 6 Min
alt
loan+against+property Loan Against Property

[N][T][T][N][T]

Understanding the Fees & Charges on Your Loan Against Property
2023-02-14 | 6 min
alt
loan+against+property Loan Against Property

[N][T][T][N][T]

Understanding the Fees and Charges on Your Loan Against Property
2023-02-16 | 8 min
alt
home+loan Home Loan

[N][T][T][N][T]

How to Choose the Best Home Loan?
2023-08-09 | 4 min
alt
home+loan Home Loan

[N][T][T][N][T]

Advantages for First-Time Home Buyers
2023-07-14 | 4 min
alt
home+loan Home Loan

[N][T][T][N][T]

A Complete Guide for Home Loan Insurance
2023-04-03 | 4 min
alt
loan+against+property Loan Against Property

[N][T][T][N][T]

5 Benefits of Using Area Conversion Calculator
2023-02-14 | 6 min
alt
loan+against+property Loan Against Property

[N][T][T][N][T]

What Is the Difference Between Gold Loan and Loan Against Property?
2023-03-02 | 6 min
alt
loan+against+property Loan Against Property

[N][T][T][N][T]

Things to Do If Your Loan Against Property Application Gets Rejected
2023-02-14 | 5 min
alt
home+loan Home Loan

[N][T][T][N][T]

A Guide to Statutory Liquidity Ratio
2023-02-22 | 5 min

MissedCall-CustomerRef-RHS-Card