Buying a property or taking a home loan in the name of a female family member like wife, sister or mother has the following benefits:
Increased home loan eligibility Majority homes in India are financed through home loans because they are an effective and practical way to buy one’s dream house. But before financing your property, banks and NBFCs evaluate the home loan seeker’s loan eligibility which primarily depends on the salary. Co-owning a house with one’s wife helps increase the loan amount, as in this case both applicant’s incomes are taken into consideration. Home loans at a lower rate A number of leading banks and NBFCs in India offer home loans with concessional interest rates to women, besides various lucrative schemes, offers, and initiatives. This encourages women entrepreneurs, executives, and even homemakers to take a home-buying decision. As women are generally perceived to be more punctual and sincere in paying back loans and default less on making payments, thus banks also prefer giving loans to women. ‘Her Ghar’ scheme by SBI has waived off the processing fee for women home loan applicants. ‘Women Power’ by HDFC, and Mahila Awas loan are some other schemes which benefit women who are seeking home loans. An important point to note is that banks or HFCs offer discounted rates only if the woman is the solo or first co-applicant.The prevailing home loan interest rates (floating) for women borrowers vs others are as follows:
Bank | Interest rate for Women borrowers (per cent, per annum) | Interest rate for others (per cent, per annum) |
SBI | 8.7-9.25 | 8.75-9.35 |
HDFC Ltd | 8.7- 9.3 | 8.75- 9.35 |
PNB | 8.65-8.7 | 8.7-8.75 |
Note: Rate as on Nov, 2021 (For loan amount < Rs one crore)
Buying a property or taking a home loan in the name of a female family member like wife, sister or mother has the following benefits:
Increased home loan eligibility Majority homes in India are financed through home loans because they are an effective and practical way to buy one’s dream house. But before financing your property, banks and NBFCs evaluate the home loan seeker’s loan eligibility which primarily depends on the salary. Co-owning a house with one’s wife helps increase the loan amount, as in this case both applicant’s incomes are taken into consideration. Home loans at a lower rate A number of leading banks and NBFCs in India offer home loans with concessional interest rates to women, besides various lucrative schemes, offers, and initiatives. This encourages women entrepreneurs, executives, and even homemakers to take a home-buying decision. As women are generally perceived to be more punctual and sincere in paying back loans and default less on making payments, thus banks also prefer giving loans to women. ‘Her Ghar’ scheme by SBI has waived off the processing fee for women home loan applicants. ‘Women Power’ by HDFC, and Mahila Awas loan are some other schemes which benefit women who are seeking home loans. An important point to note is that banks or HFCs offer discounted rates only if the woman is the solo or first co-applicant.The prevailing home loan interest rates (floating) for women borrowers vs others are as follows:
Bank | Interest rate for Women borrowers (per cent, per annum) | Interest rate for others (per cent, per annum) |
SBI | 8.7-9.25 | 8.75-9.35 |
HDFC Ltd | 8.7- 9.3 | 8.75- 9.35 |
PNB | 8.65-8.7 | 8.7-8.75 |
Note: Rate as on Nov, 2021 (For loan amount < Rs one crore)
Partial waiver on stamp duty In many Indian States, stamp duty for women homebuyers is comparatively lesser than those applicable for men. Rajasthan offers a 1% reduction in stamp duty for women and there is a 2% reduction in the stamp duty payable in Delhi and Haryana. This is irrespective of the fact whether the woman is a sole or joint owner of the property. There is a lower stamp duty charge even if the property is given to the female family member as a gift. For instance, in Jaipur, Rajasthan if you buy a flat for Rs 1 crore, the stamp duty for a male buyer would be Rs 6 lakh. Whereas, for a man and woman as joint owners it would be Rs 5 lakh and for a woman buyer, it would be Rs 4 lakh. Delhi government charges stamp duty of 4 percent from women compared with 6 percent for men and 5 percent for a man and woman as joint owners. Stamp duty charges for Women Vs MenState | For men | For women |
Rajasthan | 5% | 4% |
Haryana | 7% | 5% |
Jharkhand | <1% | No stamp duty charges, paid one time for the first property |
Tamil Nadu | 7% | 7% |
West Bengal | 5% in rural6% in urban(Plus 1% if property cost is >Rs 40 lakhs) | Same |
Maharashtra | 5% | 5% |
Punjab | 6% | 4% |
UP | 7% | Rebate of Rs 10,000 on overall charges |
Delhi | 6% | 4% |
Karnataka | 5.6% | 5.6% |
A co-applicant in a home loan is an individual who has an equal responsibility in paying the loan’s EMIs just like the main borrower. It is not necessary that a co-borrower must be a co-owner but if there is any dispute on the property then that individual will also be held accountable. Only a blood relative or an immediate family member can be a co-applicant for a home loan. Having a creditworthy co-applicant for a home loan is beneficial as it increases the chances of getting the loan approved with higher loan quantum and in some cases the co-applicant may also share the loan burden.
The following combinations for co-applicants are accepted:State | For men | For women |
Rajasthan | 5% | 4% |
Haryana | 7% | 5% |
Jharkhand | <1% | No stamp duty charges, paid one time for the first property |
Tamil Nadu | 7% | 7% |
West Bengal | 5% in rural6% in urban(Plus 1% if property cost is >Rs 40 lakhs) | Same |
Maharashtra | 5% | 5% |
Punjab | 6% | 4% |
UP | 7% | Rebate of Rs 10,000 on overall charges |
Delhi | 6% | 4% |
Karnataka | 5.6% | 5.6% |
A co-applicant in a home loan is an individual who has an equal responsibility in paying the loan’s EMIs just like the main borrower. It is not necessary that a co-borrower must be a co-owner but if there is any dispute on the property then that individual will also be held accountable. Only a blood relative or an immediate family member can be a co-applicant for a home loan. Having a creditworthy co-applicant for a home loan is beneficial as it increases the chances of getting the loan approved with higher loan quantum and in some cases the co-applicant may also share the loan burden.
The following combinations for co-applicants are accepted: