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Society has always dictated women in Indian households to let men worry about finances and anything related to money. This ingrained message has created a huge gap between their lives and any kind of financial service. It is also noteworthy that a huge percentage of working women fall under the same category where they have no knowledge and control over their earnings.

But the times are changing as women are gradually indulging in financial education because there is no financial independence without being able to decide what to do with money. Women are also taking charge of important decisions such as buying a house and applying for home loans.

Since buying a house is one of the most important decisions that you may take in your life, in this blog we discuss the basics of home loans and various benefits enjoyed by women.

What are home loans?

When you borrow a certain amount of money from any bank or money lending institution at a particular rate of interest that you pay every month in the form of EMI, it is called a home loan. You use this loan money to buy property for commercial purposes or personal use.

Classification of home loans

There are various types of home loans that serve different purposes-

Home purchase loan

You can take up this loan if you are looking for apartments in Chennai to purchase.

Home improvement loan

A home improvement loan is helpful if you are trying to cover expenditures of repairing your house or renovations.

Home construction loan

This loan is useful if you want to build a new house

Land purchase loan

In order to buy land for sale in Mannivakkam, a land purchase loan might come handy.

Home extension loan

People opt for home extension loans in order to add another room to their existing house or add a garage, a bathroom or kitchen. You can also apply for this loan if you are planning to build another floor to your existing home.

With the basics of home loans discussed, let’s take a look at certain benefits enjoyed by women when they apply for a home loan.

Easy eligibility criteria

The eligibility criteria of women as a loan applicant are different-

  •         Applicants must be an Indian citizen
  •         She should be between 23 and 58 years of age.
  •         It is mandatory for female loan applicants to have work experience of 3 years.

Relatively high borrowing limit and an extended tenure of loan repayment

When a woman applies for a home loan, they can opt for a higher amount of loan. Most banks and money lending brands offer home loans to women that range from 30 lakhs to 3.5 crores. The repayment tenure can be extended to 30 years (approx.). When you put together the easy eligibility criteria and higher loan limit, buying a luxury apartment in Chennai is much easier for women home loan applicants.

Lower rates of interest

There is no doubt that the rate of interest to be paid for a loan determines the journey of owning a house. Hence when it comes to a lady applying for a home loan or being a co-applicant, she is eligible for a discounted rate of interest. Home loans are huge amounts of money and are repaid over an extended period. In such instances, a concession in interest rates is crucial as it makes the journey of repayment easier.

Reduction in stamp duty and tax deductions

Although the rate of stamp duty varies from state to state, when a woman registers a house in her name, she can avail the stamp duty at a reduced rate of 1 to 2%. Since the stamp duty depends on the total cost of the house, when a woman is buying a luxury flat in Chennai, this reduction can turn into a huge saving! Women also have the opportunity of claiming tax benefits. Under Section 80C, a woman can claim up to Rs.1.5 lakhs on the principal amount, and an additional amount of Rs. 2 lakhs on the repayment of interest.

Government schemes namely PMAY or Pradhan Mantri Awas Yojana

Post the introduction of the Pradhan Mantri Awas Yojana, a woman needs to be the owner or co-owner of a property if she wants to avail an interest subsidy that goes up to Rs. 2.67 lakh. This scheme also gives preference to women applicants and has resulted in a steady rise of 6% loan applicants.   

For the single women out there, with a dream of buying a house, we have curated some tips for you-

Assess your financial profile

Buying a house is costly. For this reason, many people shy away from taking the leap of becoming a homeowner. But we say to understand your financial profile that includes an estimation of affordability before opting for a home loan.

Credit score

Try to maintain a good credit score. 750 and higher scores determine your creditworthiness.

Additional tips 

Saving for a down payment (higher down payment also reduces your interest rates), using government schemes as leverage, having a co-applicant, and calculating the hidden charges such as registration fees, stamp duty, and loan processing fee. You need to keep these aspects in mind before you decide to shortlist apartments in Chennai and apply for a loan.

Bottom Line:

True financial independence comes from having complete control over your money, and sound financial knowledge to manage that money. We hope with this blog, we could initiate a much-needed dialogue about home loans and the benefits one can enjoy as a woman for being a home loan applicant or co-applicant.

TVH

TVH

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