Women have always been very enterprising and incredibly resourceful – as housewives, entrepreneurs, and working professionals, whether at home, businesses or a corporate set up. But, it has never been easy for women who dream of having their own home or starting their own businesses. They have the zeal and requisite expertise to deal with all kinds of specialized work but find it especially difficult to arrange for reliable sources of finance. The government of India, along with various financial institutions have come forward with schemes to promote women, entrepreneurs & homeowners.
Most of the support involves low-interest rates or grants on availing loans. Many financial institutions offer home loans for women with low interest rates and flexible payment schemes. Women also feel the need to take out home loans for any of the many following reasons – home renovation, buying new property under construction or building a new house on a plot of land, among others. The market is flooded with several banks offering home loans for women specifically, with a lower rate of interest than for men.
Home Loan Eligibility Criteria for Women
Any kind of loan requires a stable source of income – whether it’s a salary for those on a job or a stable source of income for the self-employed women. Lenders also check for your CIBIL score, and the current monthly instalment you may be paying. This is just to ascertain if the applicant is capable of repayment of loan availed. The eligibility criteria to avail home loans for women is usually the same in most banks – an annual income of Rs. 3 – 4 lakhs p.a. or above for the salaried; or Rs. 6 – 7 lakhs p.a. or above for self-employed. The applicant must be at least 20 – 21 years of age and the loan maturity age must not be beyond 60 – 65 years.
Home Loan for Women ROI (Rate of Interest)
One of the biggest advantages of availing home loans for women is the preferential ROI offered by several Nationalized and Private banks. Aiming to bridge the gender inequality and promote women’s rights, several banks now offer a concessional rate of interest on home loans for women. An example is SBI’s Har Ghar Scheme which offers ROI at a concession of 0.05% compared to male borrowers. Other banks too offer a lower ROI on home loans taken by women.
Banks Offering Home Loan to Women
Below is a list of banks, where female applicants could apply for different kinds of loans-
SBI offers loans at concessional rates to its female applicants, so women are financially empowered and get motivated enough to invest in their own piece of property. Some of the positive features include- a reduced interest rate- 8.45% -8.95% p.a. for salaried women and between 8.60-9.15% p.a. for non-salaried women. The loan tenure is up to 30 years or up to the age of 70 years of the borrower- whichever is earlier.
The Eligibility criteria are as follows- an Indian woman has to be the sole applicant or the first co-applicant. Also, the property to be financed must be either in the sole name of the woman applicant or be the first owner in case of joint ownership. The age limit is between 18 – 70 years and the applicant must have a regular income and a good credit rating.
The documents needed include the following – 3 passport-sized photos, PAN card, identity proof, bank statement for last 6 months, IT returns for the last two years completed loan application, liability statement and personal assets and signature identification from current bankers. The processing fee is 0.35% of the loan amount with a minimum of Rs. 2000/- and a maximum of Rs. 10,000/- plus applicable taxes.
The loans are specially priced for loans up to Rs. 30 Lakhs. For salaried women – interest rates can be 8.55% per annum while self-employed women can avail loans at 8.70% interest per annum. Other interest rates are also applicable depending on the tenure and loan amount applied for.
The woman borrower must be the main applicant or the owner or co-owner of the property being financed. The documents needed are – application form with photograph duly signed, identity, age and residence proof, last 6 months bank statements, IT Returns, last 3 years audited / Chartered Accountant-certified Balance Sheet and Profit and Loss Account etc.
The loan amount can range from Rs. 10 lakhs to Rs. 3.5 crore. The tenure can be up to 25 years and minimal documentation is needed. There is no part pre-payment or foreclosure charge levied. The eligibility criteria include- being an Indian citizen, of age 23-58 years. The applicant must have three years of work experience at least. The interest charged is 8.40% per annum for salaried individuals with a processing fee of up to 1% for loan amount sought.
As part of the women’s campaign, HDFC Bank has brought out home loans with low interest rates, especially for women. There are two loan slabs – up to Rs. 30 Lakh and above Rs. 30 Lakh respectively. The interest rates range from 8.50% – 9.10% p.a. for salaried applicants and self-employed professionals.
The documents needed are:
- Proof of identity and residence,
- Proof of income,
- Property related documents and others as needed.
All have to be self-attested. The processing fee is up to 0.50% of the loan amount applied for or Rs. 3000/- – whichever is higher, plus applicable taxes.
This is in no way an exhaustive list, but you could begin to explore your possible financing options- to find a tailor-made home loan for women designed for your exclusive needs!