Home Loan for Women with Lower Interest Rates - Home Loan Blog - Tata Capital

Home Loan

Home Loan for Women

Mar 07, 2017

It's a women's world - as the saying goes. The spirit of this saying extends to financial world too. If you are woman looking to purchase a house using home loan for women, then you have reason to cheer.

There is a general perception that women pay their dues on time and are less likely to default, when compared to their male counterparts. This is the reason that lenders are willing to offer certain financial benefits to women.

One of the biggest benefits for woman borrowers is that they need to pay lower interest rates as compared to men. As of now, this differential is around 0.05%. This might seem small at first but it can have a significant impact on the total repayment made to the lender. Mathematically speaking too, when the amount involved is in lacs, any concession that is available on interest rates is a welcome one. However, women can get loans on lower rates only when they become primary applicants or co-applicants for home loans.

The benefits don't end there. Many Indian states have lower stamp duty for house registration if the house is registered in the name of a woman. Although banks do not mention these schemes in their advertisement, they usually show interest in accepting home loanapplications from women applicants and co-applicants.

Similarly, stamp duty for house registration is also lower in some states if the house is registered in the name of a woman. This in itself can result in a lot of savings as registration costs run into several lacs.

But it should always be remembered that lenders are there to earn profits and are not doing any social service. So they will lend, only if they are reasonably sure that the borrower will pay back his or her dues on time. Hence irrespective of whether the borrower is a male or a female, having a good credit history is absolutely necessary for getting the home loan approved.