They say owning one’s abode is an aspiration that many women harbor in their hearts. Today, for women, owning a home seems more possible than before. This is because several financial institutions in India offer enticing benefits to women who wish to invest in property, either through home loans or plot loans. These benefits help make it easy for women to access credit and ultimately achieve home ownership. Here, we will give you an informative guide that will help you understand some of the major advantages that come with taking a home loan for women.
Importance of Home Loans for Women
The importance of offering easy and accessible women’s home loans is something that has been appreciated by major financial institutions. These loans have their own unique advantages which can allow women to venture into the property market without much difficulty in terms of their affordability status. The primary benefits to women who have taken out home loans structured for women include:
#1. Lower Interest Rates
Because they are women, it means that whenever they take loans, the rates are usually lower with them getting between 0.05% to 0.1% less than the standard rates that everyone else pays ordinarily.
Even a small drop in the interest rate can lead to huge savings over the course of the loan, which can stretch between 20 to 30 years.
#2. Higher Loan Amount Eligibility
Income largely determines how much one can borrow from a financial institution and there is added flexibility for women here.
Loosened income norms or joint applications within family circles can help raise the amount that can be borrowed by these applicants.
#3. Stamp Duty Concessions
The stamp duty charges for properties registered under the name of women in many states tend to be lower compared to properties registered in men’s names. Generally, women get 3-8% concession on these charges which would have constituted a substantial portion of their entire purchase price.
For instance, in Maharashtra, a stamp duty charge reduction of 1% is enjoyed by women on property ownership.
#4. Longer Repayment Tenure
Most women are given an option by many lenders to lengthen repayment tenure so as to ensure that they make monthly payments that are affordable and manageable via EMIs.
Through this, women can easily repay their home loans while also balancing other household expenses without much struggle.
#5. Tax Benefits
With women’s home loans, female borrowers get benefits in terms of tax rebates on the principal amount as well as interest paid.
Other Benefits of Women’s Home Loans Include
#1. Credit Score Improvement
If a woman takes home loans and repays them in time, it helps them build their credit score which makes it easier to access other financial services including personal loans or plot loans meant for investment purposes.
A good credit score (generally 750 and above) will help a borrower access better financial deals and products available in the market.
#2. Co-Ownership Opportunities
Women are often eligible for additional benefits when they buy property jointly with their spouse(s) or family. This method increases the chances of getting a loan.
#3. Empowerment and Security
To most women, ownership of a house means financial freedom from any uncertainties in life that they could be facing at some point in their lifetime. Most women will invest for their future generations through properties that they either inherit or invest in themselves at one point.
Being a homeowner also means stability, especially for single mothers or unmarried women. This gives them empowerment by making personal investments in homes where they live every day.
Factors to Consider Before Applying for a Women’s Home Loan
1. Criteria for eligibility
Income, age and employment status are among the specific requirements most lenders use to assess the qualifications of a loan taker. When applying, women should make sure they meet the bank’s criteria.
2. Making a down payment
The generally accepted range for banks as well as financial institutions in terms of down payments is 10-20% of that property’s worth. This will require women to have some money saved up which they can avail upfront for this purpose.
3. Loan duration/Tenure
We should bear in mind that extending the payment period of EMIs also raises the cumulative interest rates. Women should look at their repayment capabilities before deciding on a duration.
4. Credit score
Loan terms are quite dependent on an individual’s credit history. High credit scorers among females are likely to have lower interest rates and other better conditions for the loan.
Plot Loans – An Alternative Solution for Women
Another option for women who want to own land and build homes right from scratch is plot loans. These kinds of loans are for the purpose of purchasing land, thus permitting women to build their houses at their own pace.
Key Benefits for Ladies Taking Plot Loans Include:
- Personalisation: The initial stages of such projects give women more control over construction methods used within their houses.
- Profit Potential: You can buy the land and keep it, waiting for its value to increase with time, thus rendering the plot of land as a solid investment.
- Flexibility: Plot loans typically allow more flexibility and longer tenures, keeping space for investors to start or complete construction at their own pace.
The Bottom Line
Today’s women are fortunate enough regarding the many advantages they can realize while investing or building a home, thanks to women’s home loans. Women are able to secure their financial futures through homeownership which is now more affordable due to the reduced rates of interest or even tax exemptions coupled with longer tenures. Women can take control of their lives financially by purchasing homes that are already built or using loaned money for plots, thereby empowering them.
The whole process of getting one’s own house, especially for women, should be made less complicated so as not to deter them from pursuing this worthwhile venture. Thus, if you are a woman planning to finally own your dream house, thoroughly explore all options available to you for a brighter tomorrow free from any uncertainties.