Long gone are the days when home loans were exclusive to men. Today, as more and more women are becoming financially independent, they invest in acquiring various assets, including real estate. And, to encourage women even more to avail a home loan, many financial organisations, including banks and NBFCs offer loans at a lower interest rate for women.
Irrespective of their marital status, women home loan applicants can get a home loan at lower interest than male applicants. So, if you are thinking of applying for a home loan, you can check out tips discussed below before you initiate the application process.
Be aware of the government-sponsored home loan benefits for women
The government of India offers several benefits on home loans for women such as a concession of 1-2% on stamp duty. The percentage of the concession depends on the state you reside. If you want to purchase a second home, there is no limitation on the tax benefits you can claim.
Be aware of the lender-specific eligibility requirements
While many lenders in India offer home loans, you can get the desired amount only if you meet their specific eligibility criteria. So, before you start filling the home loan application form, it is paramount that you do your research about the different lenders’ requirements. Choose the one that has simple requirements, and you think you can easily meet them.
Assess your financial condition
Getting a house loan is a huge financial commitment. So, assess your financial condition and apply for a loan that you can easily repay without compromising on your other long-term goals. The EMI should be affordable and fit within your budget. Also, you must know that the lenders do not approve 100% of the property cost; you must pay about 20% of the cost as down payment from your pocket.
So, ensure that you have necessary arrangements to pay the amount to avoid delay in the home loan approval process.
Start saving early
Buying a new home is a significant investment and you must plan your finances meticulously. As soon as you decide to buy a home, it is advisable to start saving or increase your savings before you apply for a home loan. Having a systematic approach may help you in this regard; you can start an SIP that offers 10% returns. This way you can build a solid corpus for the future. You can either use the amount to prepay the loan and be debt free or make a higher down payment so that you can borrow less.
Build your credit score
All the financial organisations that provide home loans consider the applicant’s credit score as one of the critical factors to determine their eligibility and repayment capacity. So, before you apply for a home loan, you must check your credit score and see it matches the lender’s benchmark requirement.
If not, you must build your credit score by paying off the dues and bills on time. Successful repayment can have a positive impact on your credit score. Having a high score can help you get the loan without any hassles. Also, you may negotiate with the lender to get a better offer based on your remarkable credit history.
Getting a home loan for women is easy in India. However, it is better to equip yourself with the right knowledge so that you can make an informed borrowing decision.