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The Benefits of Taking Out a Home Loan with a Woman as the Primary Borrower

Women are increasingly taking out home loans as they become more financially independent. It has led to attractive home loans for women and schemes for them by various lending institutions.

Women who apply for home loans receive additional benefits, such as easy eligibility requirements and lower interest rates, encouraging them to take out loans, invest in real estate, and become homeowners. Taking out home loans with women as the primary borrower has many benefits. Here are some of them:

Greater Chances of Loan Sanctions

According to several reports from credit bureaus, female borrowers are better at managing credit and less likely to miss loan repayments. As a primary woman borrower, you have a better chance of getting a loan approved. Lending institutions also consider the income, borrower’s credit score, and other financial qualifications.

Having a woman with a high credit score as a co-borrower may improve your loan eligibility. A high credit score and consistent income make it easier for you to get the sanction. Therefore, having a female borrower or co-borrower may increase the likelihood that the loan will be approved.

More Accessible Criteria for Women Borrowers Applying for Big Loans

Lending institutions are increasing their sanctions to encourage female borrowers. You can access high loan amounts to buy the home of your choice, ranging from Rs. 30 lakh to Rs. 5 crores and even more. By combining this with reasonably simple eligibility requirements, women can easily apply for a home loan.

Lower Interest Rates

Home loans for women offer lower rates than for men, whether they are primary or secondary applicants. A primary woman borrower may qualify for loans at 5–100 basis points (bps) below-market rates. Several lenders provide female home loan borrowers with discounted interest rates to promote homeownership among women. Although this difference of 0.05 percent to 5-100 basis points may seem insignificant, it can significantly lower your interest expenses and ease your EMI burden. Additionally, it increases your monthly cash flow while providing significant savings over the loan’s term.

Longer Repayment Tenures

Women who are the primary applicants for home loans can choose a repayment period of up to 30 years or until they turn 70, whichever comes first. The same could be 20 years or age of 65 years for men. As a woman borrower, you have the opportunity to reduce your EMIs. It will ease the strain on your finances and allow you to meet other obligations while paying off your home loan. You can experience greater convenience as a woman borrower because there are no fees associated with partial prepayments or loan foreclosure.

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Women Can Take Advantage of Government Schemes Like PMAY

The female head of the family must be a co-owner under the Pradhan Mantri Awas Yojana (PMAY). This scheme provides an interest subsidy of up to Rs. 2.67 lakh. Additionally, it gives female applicants preference, which has led to a significant increase in women applying for home loans in India.

Home Loan Tax Benefits

For home loan repayments, women borrowers are eligible for tax breaks of up to Rs. 3.5 lakh. Your co-borrower is also qualified to make a separate tax deduction claim. All co-borrowers can take advantage of tax deductions to pay interest and principal on joint home loans. All co-borrowers may qualify for a tax deduction benefit of up to Rs. 1.5 lakh on the principal repaid and another Rs. 2 lakh on the interest repayment as joint property owners.

Lower Stamp Duty

The government supports female home ownership as well. Reduced stamp duty fees are provided to the female borrowers of home loans by many state governments. Thus, a woman can save between Rs. 80,000 and Rs. 1,60,000 on an Rs. 80 lakh property. However, 1-2 percent might seem insignificant. But when you calculate 1 percent to 2 percent of the total cost of the property, the amount saved is quite significant.

Lending institutions are launching initiatives, lowering home loan interest rates for women, and encouraging them to take steps toward becoming homeowners. Women are now able to successfully purchase their dream homes on their own, independent of anyone else, thanks to the schemes and offer made by lending institutions.

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