In this day and age, women equally partake in investing in residential assets. To encourage even more women to avail of easy home loans, banks and financial institutions provide them with special offers. The rate of interest on home loans for women is always lower, regardless of their marital status. Are you thinking of applying for housing finance? Check out these tips before filing your application for a home loan.
Be Aware of Government Home Loan Benefits
The Government of India has mandated various benefits on home loans for women. These benefits include a concession in stamp duty by 1% to 2% depending on the state in which you reside. If you wish to purchase a second home, there is no upper cap on the deduction claim. You can also avail a tax benefit on Rs. 2,00,000 under Section 24 and of Rs. 1,50,000 under Section 80C towards the repayment of your home loan principal as well as interest amount.
Gauge Your Loan Affordability
Don’t bite more than you can chew, meaning, set a realistic EMI amount by applying for a home loan for women that you can repay without disturbing your usual monthly expenditure. However, you may have to optimise your lifestyle expenses a bit. Also, be aware that you will need some margin money. Margin money is the total sum a borrower pays out of her pocket to the builder, while the bank pays the balance. For example, say you wish to apply for a home loan online for Rs. 1,00,000/- but the financial institution approves only Rs. 80,000, then you need to be prepared with the remainder Rs. 20,000. Make sure you find a bank that helps you reduce your margin money amount further.
Start Saving Well in Advance
Buying a house is a substantial financial commitment and hence, requires proper planning. You need to start saving up substantially before you applyfor a home loan. Approach savings systematically and invest in an SIP offering a return of say 10% to build yourself a solid financial corpus. If you do not wish to invest in an SIP, then make a long-term FD. All these savings will help you with the margin money.
Additional Read: 5 Reasons Home Loans are Going to be Big in 2020
Build Your Credit Score
Banks and NBFCs give a lot of importance to credit score for home loan eligibility. So, before applying for a home loan for women online, make sure you have a solid credit record. The easiest way to build your credit history is by paying off your credit card bills on time. Successful repayment of a previous personal or vehicle loan also impacts credit history positively. The lenders look for three main things before sanctioning a home loan. They are:
· Full financial profile
· Credit history
Additional Read: Best Tips to Plan Your Down Payment for Home Loan
Want to create a solid financial foundation by investing in an asset as valuable as a home? Apply for a home loan today with Tata Capital! Not only do we offer customised products, high home loan eligibility, and structured EMI options, but our home loan interest rates are among the lowest in the industry, starting at just 9.25%. Visit our website to find out your monthly EMIs in advance using a simple online home loan calculator such as the home loan EMI calculator. Get in touch today!