In a world where it is heartening to see women playing leadership roles, the incidence of women taking housing loans is also increasing. As women follow successful careers, they not only are buying houses in their names for own use but also for investment purposes.
On the occasion of Women’s Day, it is an appropriate time to look at home loans for women.
Why buy a home?
While a woman may move into her husband’s home after marriage, a home in her name gives her a strong sense of financial security – so there is a good chance that she will buy a house for investment purposes, which means it makes sense to select a home on which she has to pay lower EMIs.
Choosing a home loan
It’s easier for women to get a home loan as they are less likely to default on the EMIs. Use a housing loan eligibility calculator to find out the kind of home that is affordable. Women in India are eligible for tax benefits – up to INR 2 lakhs on the home loan interest rate paid.
Women in India are being encouraged to buy houses in their names and a lot of financial incentives are being offered to help them do so. They include:
- Women are eligible to get discount of 0.05 per cent on the interest rate. Since housing loans are for long periods of time, this discount amounts to a decent bit of money in the long run
- Besides the reduced interest rate, women are also eligible for relaxation in stamp duty and registration charges. These charges are included in the down payment, so this relaxation reduces the stress of paying the initial payment
- If you are a co-applicant for the home loan with your husband, you get tax deduction in equal proportion with your husband
As a responsible homeowner, you should protect yourself against calamities by choosing an insurance cover for your new home. It also makes sense to protect yourself from future liability by taking insurance on the home loan as well.
Pick lender carefully
There are a number of companies offering women housing loans. It is best to make a comparison of the available options. After shortlisting, make a personal visit to the bank branch and speak to the sales representative to fully grasp all the features.
Before you actually apply for the loan, check your CIBIL report for errors that may bring down your score. If you do find an error, rectify it before you make an application.
Keep these documents ready when applying for the loan:
- Salary slips of last three months or any valid income proof, if self-employed PAN card, which also serves as a photo ID card
- Address proof such as driving licence, voter ID card
- Bank statement, electricity bill or any such document issued by the government
- Passport size photographs
- Bank statement of past six months
- Documents providing proof of total assets and liabilities
- Duly signed application form. Processing fee cheque
- Processing fee cheque
Remember to put your name as primary applicant to apply under ‘home loan for women’ category and get the befits that come along.
Happy Home Hunting!