When securing a Home Loan, women in India enjoy distinct advantages that make homeownership more accessible and
rewarding. With lenders offering exclusive Home Loan benefits for women, such as reduced interest rates and lower
processing fees, owning a home becomes a more achievable goal. These advantages on home loan for women lighten the
financial burden and empower women to build long-term assets and secure their future. Let’s explore how a Home Loan
for women opens doors to financial independence and growth.
Home Loan benefits for ladies in India
Understanding the unique benefits of Home Loans for women in India is crucial. Let's delve deeper into these
advantages:
1. Lower interest
As a woman, you're likely to receive a more favourable interest rate on your Home Loan. While the difference might
seem minimal at first glance, it can lead to substantial savings over the loan's tenure. This slight reduction in
interest rates can significantly decrease the total interest payable, making your Equated Monthly Installments
(EMIs) more manageable. It's a strategic financial benefit that can make the dream of owning a home more attainable
and budget-friendly for you.
2. Women benefit as co-borrowers
If you're considering a joint Home Loan, being a woman co-borrower can be particularly beneficial. It can enhance the
overall loan eligibility, potentially leading to approval for a higher loan amount. This is especially advantageous
for couples or families where women contribute to the household income. By combining your financial strength with
that of your spouse or family member, you can increase your borrowing capacity, making it easier to finance a home
that meets all your needs and preferences.
3. Women pay lower stamp duty and claim tax deductions
In many states across India, women enjoy the benefit of paying lower stamp duty on property purchases. This
reduction, typically ranging from 1% to 2%, can translate into significant savings, particularly for higher-value
properties. Additionally, as a woman homeowner, you can claim tax deductions on both the principal and interest
components of your Home Loan under various sections of the Income Tax Act. These deductions can lead to substantial
tax savings, further reducing the financial burden of purchasing a home.
4. Women can make use of schemes like PMAY
The Pradhan Mantri Awas Yojana (PMAY) is a government initiative that offers subsidy on Home Loans for ladies. This
scheme not only provides financial relief through interest subsidies but also mandates the inclusion of a woman as a
property owner. This requirement promotes homeownership among women and ensures that they are integral stakeholders
in property investments. By availing PMAY home loan subsidy for females, you can
significantly reduce the cost of your Home Loan, making homeownership more accessible and affordable.
5. Women can choose longer repayment tenors
Longer repayment tenors are a significant advantage for managing your financial obligations without stress. As a
woman, you often juggle multiple responsibilities, and having the option to extend your loan repayment period can
ease the monthly financial burden. This flexibility allows you to choose a repayment plan that aligns with your
income flow and other financial commitments, ensuring that your Home Loan doesn't become a financial strain. With
longer tenors, your EMIs are spread out over an extended period, making them smaller and more manageable within your
monthly budget.
Why should women take a Home Loan?
1. Favoured applicants
Financial institutions often view women as more reliable borrowers. This perception can lead to quicker loan
approvals and more favourable loan terms for women.
2. Specialised schemes
Many banks offer specialised Home Loan schemes for women. These schemes may
come with added benefits like lower processing fees or additional offers, making them an attractive option for women
borrowers.
3. Right time to buy
With the current focus on empowering women financially, it's an opportune time for women to invest in property. The
array of benefits available makes it a financially prudent decision.
Documents required for Home Loans for women
Please ensure all documents comply with KYC guidelines and are valid. Missing any required documents can delay the
approval process. Having your paperwork in order simplifies the process, allowing quicker disbursal and easy access.
1. Identity proof: As per KYC guidelines, PAN Card, Aadhaar Card, Passport, Voter ID, or Driving
Licence.
2. Address proof: Aadhaar Card, Passport, Utility Bills, or Rent Agreement.
3. Income proof:
For Salaried Applicants:
- Recent Salary Slips: Submit your latest 3 months’ salary slips as proof of consistent monthly
income.
- Form 16: Provide Form 16 (Parts A and B) for the last 2 years. If your salary exceeds ₹50,000
or you are a CSG customer, only 1 year of Form 16 may be sufficient.
- Bank Statements: Include bank statements for the last 6 months that reflect clear salary
credits for each month.
- Proof of Bonuses and Increments:
- For bonuses, provide supporting salary slips along with banking statements as evidence.
- For increments, include the increment letter, updated salary slip, and bank statements verifying the
updated amount.
- Job Continuity: If your job continuity is not evident from salary slips or Form 16,
additional proof such as an offer letter or employment confirmation letter will be required.
For Self-Employed Applicants:
- Income Tax Returns (ITRs): Submit ITRs for the last 2 years, along with a detailed
computation of income.
- Financial Statements:
- Provide a profit and loss statement and a balance sheet with complete schedules, signed and stamped by a
Chartered Accountant (CA). If your ITR falls under Section 44AD, this requirement may be waived.
- Include a CA-audited report for the past 2 years, complete with UDIN certification and annexures.
- Form 26AS: Offer Form 26AS for the past 2 years as supplementary proof (not mandatory during
the initial application stage).
- Bank Statements: Share 6 months of bank statements for both personal and business accounts,
ensuring they include the bank’s logo and name for authenticity.
- GST Compliance:
- Submit 1 year’s GST R–3B returns.
- Provide a GST registration certificate as proof of compliance.
- Office Address Proof: A utility bill showing the official address of your business is
required.
- Business Continuity Proof: If you provide 2 years’ ITR, submit 3 years’ proof of business
continuity, unless otherwise specified by the lender.
4. Property documents: Sale Agreement, property title deeds, and property tax receipts.
5. Photographs: Recent passport-sized photographs.
6. Employment proof: Offer letter or employment confirmation letter for salaried individuals.
Eligibility criteria for Home Loans for women
1. Age: Applicants must be between 18 and 65 years (at loan maturity or retirement age, whichever
is earlier).
2. Employment status:
- Salaried Women: Minimum of 2 years’ work experience with proof of job continuity.
- Self-Employed Women: At least 3 years of business continuity (proof required).
3. Income: A stable and regular source of income is essential. Most lenders require a minimum
monthly income, typically ₹25,000 or more, depending on the loan amount.
4. Credit score: A good credit score (700 or above) is crucial for approval.
5. Co-applicant: Women can apply individually or jointly with a co-applicant. Joint ownership often
increases eligibility.
6. Property ownership: The property should be registered in the woman’s name (mandatory for
availing benefits like lower interest rates).
Also Read: Buy
your dream home even if you are in your 40s
The takeaway
These Home Loan benefits for women not only facilitate their dream of home ownership but also strengthen their
financial independence. With institutions offering benefits and subsidy on home loan for ladies, now is an opportune
time for women to step forward and make their home-owning dreams a reality.
FAQs
1. What are the eligibility criteria for Home Loan for women?
Eligibility criteria typically include age, income level, employment status, and credit score. Banks may offer more
flexible criteria for women to encourage their homeownership.
2. Can both husband and wife claim Housing Loan benefits?
Yes, if both are co-owners and co-borrowers of the property, they can individually claim tax benefits on the Home
Loan.
3. Who can be a co-applicant in a Home Loan for women?
A co-applicant can be a spouse, parent, or sibling. Including a co-applicant can increase
the loan eligibility and the chances of loan approval.
4. Is the EMI lower if the Home Loan applicant is a woman?
Yes, due to the lower interest rates offered to women, the EMI for a Home Loan can be lower compared to loans availed
by male applicants. This makes the loan more affordable and manageable for women borrowers.
Disclaimer: This article is for information purpose only. The views expressed in this article
are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd.
and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader
for taking any financial decisions based on the contents and information. Please consult your financial advisor
before making any financial decision.
