More women today are building careers and running businesses, and many are now sharing the cost of buying a home with their spouses instead of depending on them. Banks and housing finance companies have noticed, and there are good reasons to include a woman as a borrower on a home loan.
Many lenders now offer dedicated home loan for women products. These can come with lower interest rates, reduced processing fees and, in some states, lower stamp duty. Knowing the criteria and the documents you need helps you make the most of them.
Benefits of a home loan for women
Higher loan eligibility. When women apply for a home loan jointly with a spouse, the combined income can make you eligible for a larger loan, giving you more choice of homes.
Tax benefits. With a joint loan, each co-borrower can claim deductions of up to Rs.1.5 lakh on principal repayment (Section 80C) and up to Rs.2 lakh on interest (Section 24), which together can mean up to Rs.3 lakh on principal and Rs.4 lakh on interest across both partners. These deductions apply under the old tax regime and are subject to the rules in force, so check with a tax adviser.
Lower stamp duty. To encourage women to own property, several state governments reduce stamp duty for women by 1% to 2%. On a property worth Rs.30 lakh, that can save between Rs.30,000 and Rs.60,000.
Better chances of approval. Lenders often view women borrowers as careful savers with low default rates, which can improve the odds of approval.
PMAY subsidy. Women from EWS, LIG or MIG households can get a government subsidy of up to Rs.2.67 lakh on the principal of a home loan under the Pradhan Mantri Awas Yojana, provided they are the sole or joint owner of the property.
Eligibility criteria
Every lender sets its own rules. At Shubham Housing Finance, the basic requirements for a home loan are:
- Indian citizen
- Age between 20 and 60 years
- At least two years of work experience
- Credit score of 650 or above
- Monthly family income of Rs.15,000 or more
You can also use a home loan eligibility calculator to see what you may qualify for based on your own finances. Having the woman as primary applicant or co-borrower can reduce the EMI burden and support financial independence.
The bottom line
Between lower rates, tax benefits, stamp duty savings and subsidies, there has rarely been a better time for women to become homeowners. Compare offers, read the terms carefully and use the calculators before you commit. If you are planning to buy your first home, Shubham’s home loan programme for women is one option to look at.
