Empowering the woman is today’s tagline everywhere. The idea of women being confined to homes and kitchens is passé. Women have proved their abilities in every sphere of life. Their prowess has been exhibited in the recently concluded Rio Olympics. Working women professionals are earning good salaries and are financially capable of buying their own home.
Banks and financial institutions are making it progressively easier for women to deal with their financial needs. Most of them are attracting more women customers by offering special deposit account schemes, faster Home Loan processing, and most importantly, a lower interest on Home Loans.
When you apply for Home Loan, you need to meet eligibility norms similar to the ones laid down for your male counterparts. This is where you score an edge, as banks offer some benefits which are privy to women Home Loan borrowers. These privileges are available when the woman is the sole borrower or the primary borrower in a joint loan account.
Low Interest Rates
When you apply for Home Loan, the first criteria that you note is the interest rate charged. A big chunk of your EMI outflow is in the form of interest. Higher the loan tenure, greater would be the interest you’ll have to pay. To encourage women to purchase their own home, banks offer Home Loans at a relatively lower interest rate to women. Usually, this is about 0.25% to 0.5% less than the applicable interest rate.
This does make a sizeable difference taking into the account the quantum of Home Loan that you need to buy a home. In fact, lower interest rates also translate to faster repayment and loan closure.
Higher Chances of Loan Approval
Loan approval is accorded after verifying the borrower’s ‘creditworthiness’ based on their CIBIL score. The score reflects the risk associated with the borrower and is used to lenders to ascertain whether they should approve a particular loan application or not. However, in situations where the primary borrower is a woman, there is a remote chance that the application will be rejected, as most loan providers consider women to be financially prudent.
This doesn’t mean that women borrowers’ applications are approved without any checks. They also need to submit all documents required for Home Loan and satisfy the eligibility criteria in order to avail of any type of loan.
Lower Stamp Duty
Stamp duty adds to the cost of the property. In cities like Mumbai, the stamp duty is quite high. In such circumstances, a lower stamp duty will definitely be the home buyer’s advantage. The state governments, which fix the stamp duty rate, offer a concession for women buyers. The reduced stamp duty also effectively brings down the cost of acquisition.
With such many benefits flowing in their favour, women can now go ahead and buy their dream home. In case you’re a woman applying for a joint Home Loan with your spouse, or your father, you can reap more benefits by applying as the primary borrower.