A Guide to Home Loan for Women in India

In recent years, home loans for women have become a popular financial product in India. With more women joining the workforce and taking an active role in household financial management, banks and financial institutions have introduced special offers for female borrowers. These benefits often include lower interest rates, higher loan eligibility, and various tax advantages.

Let’s take a closer look at what a home loan for women in India entails, the eligibility criteria, the required documents, and the best home loan offers available.

What Is a Home Loan for Women?

A home loan for women is a type of loan offered by banks and housing finance institutions specifically designed for female borrowers. These loans come with several benefits, such as lower interest rates, enhanced loan eligibility, and other financial advantages to empower women to achieve homeownership.

A home loan for women can be used to buy new properties, purchase plots, build a house, or renovate an existing one. Additionally, home loans for women come with tax benefits under Section 80C of the Income Tax Act and eligibility for the Pradhan Mantri Awas Yojana (PMAY) scheme.

Eligibility for a Home Loan for Women

To avail of a home loan for women in India, applicants must meet the following eligibility criteria set by financial institutions.

Criteria	Description/Requirement
Age of the Applicant	Minimum age: 18 years, Maximum age: 70 years (varies by lender)
Resident Type	The applicant should be a Resident of India, a Person of Indian Origin (PIO), or a Non-Resident Indian (NRI)
Employment	Salaried or Self-employed individuals are eligible
Net Annual Income	Varies according to the lender’s terms and conditions
Residential Address	Permanent residence or rented accommodation for at least one year
Credit Score	Ideal credit score: 750 or higher (varies by lender)

Documents Required for Home Loan for Women

Identity Proof

To verify the identity of the applicant, documents like an Aadhar card, voter ID, passport, driver’s license, and PAN card serve as an Identity proof

Address Proof

Documents like an Aadhar card, passport, utility bills (electricity, water, etc.), rent agreement, and bank statement serve as address proof to prove the applicant's residential address.

Income Proof

The lender requires proof of income to evaluate the borrower’s ability to repay the loan. Following are the documents required:

• Salary slips for salaried employees
• Income tax returns for self-employed individuals
• Bank statements for the last 6 months
• Form 16
• Audited financial statements (for business owners)

Property Documents

For purchasing or constructing a property, the borrower must provide a sale deed, property title certificate, NOC (No Objection Certificate) from the builder (if applicable), agreement to sell, and property tax receipts.

Employment Proof
To prove a stable source of income, it's essential to present the following

• Employment ID
• Offer letter or appointment letter from the employer
• Salary slips (last 3 months)
• Self-employed applicants may submit business registration documents and tax returns.

Best Home Loan for Women

1: SBI Regular Home Loan

The SBI Regular Home Loan offers a concessional interest rate starting at 6.95% per annum, making it a cost-effective option for women. It provides flexibility with no prepayment penalties and allows women to avail the loan as an overdraft facility. The loan term can go up to 30 years, offering ample time to manage EMIs. This loan is available for both under-construction and ready-to-move-in properties.

2: HDFC Women Power Home Loans

HDFC's exclusive 'Women Power' home loan offers a reduced interest rate, five basis points lower than regular loans. The rate ranges from 6.95% to 7.45% for salaried and self-employed professionals and 7.10% to 7.60% for self-employed non-professionals. 

This loan can be used to purchase a new or resale house, transfer loans, or construct property. It's available to both resident and non-resident women, and women can also apply as joint applicants.

3: Punjab National Bank Home Loan

Punjab National Bank (PNB) offers home loans for women with a 0.05% lower interest rate than regular loans. The scheme is available for salaried professionals, entrepreneurs, and housewives. Women can also use up to 10% of the loan amount (a maximum Rs. 25 lakh) for furnishing. PNB offers a moratorium of up to 3 months from the loan disbursement date or until possession, whichever is earlier.

4: Fullerton Grihalakshmi Home Loan

Fullerton India offers the Grihalakshmi Home Loan with interest rates starting at 9.5%. The loan can be used to buy a new house, construct a house, or renovate a current property. The scheme offers a high loan eligibility ratio based on the borrower's financial profile, making it a great option for women looking for flexibility and financial support.

Benefits of Home Loan for Women

1: Lower Interest Rates

• Women borrowers often enjoy lower interest rates than their male counterparts. 
• Lenders view women as more reliable borrowers and offer them special interest rate discounts, typically between 0.05% to 0.1%. 

While the reduction may seem small, it can significantly lower monthly EMIs, making loan repayment more manageable.

2: Increased Home Loan Eligibility

• Women can access higher loan amounts, typically ranging from Rs. 30 lakh to Rs. 10.50 crore or more. 
• Simple eligibility criteria allow women to apply for larger loans without facing stringent requirements. 

For example, Bajaj Finserv's Home Loan for Women requires just basic criteria, like being an Indian citizen aged 23 to 65 with at least 3 years of work experience.

3: Longer Repayment Tenure

Women borrowers benefit from longer repayment tenures of up to 40 years. This extended period allows for smaller EMI amounts, reducing financial strain and making it easier to balance loan repayment with other commitments. Additionally, there are no charges for part-prepayments or foreclosure, providing more flexibility and convenience.

4: Lower Stamp Duty and Tax Deductions

Most state governments offer women a discount of 1-2% on stamp duty when registering a property in their name. While this may seem modest, it can result in substantial savings depending on the property's total cost. Women can also benefit from tax deductions—up to Rs. 1.5 lakh for principal repayments and Rs. 2 lakh for interest payments on self-occupied homes.

5: Pradhan Mantri Awas Yojana (PMAY)

Women applicants benefit from the Pradhan Mantri Awas Yojana (PMAY), which provides an interest subsidy of up to Rs. 2.67 lakh. PMAY gives priority to women in home loan applications, contributing to a 6% increase in women borrowers. This scheme, combined with other benefits, helps women achieve financial independence and homeownership.