The modern era is women oriented and focuses highly on the empowerment of women. Financial industries are equally focused on the same. Banks, Non-Banking Financial Companies, lenders, financial institutions etc. have started extending their hands to support the women borrowers. In fact, the lenders are more comfortable to offer the home loans to women borrowers because according to the general perception, the women borrowers tend to pay off their dues on time and they are also less likely to default in comparison with the male counterparts.
The women borrowers are getting the advantages as they are offered low interest rates in comparison to male borrowers. The usual differential rate is around 0.05% that may look small at first instant, but when it comes to repayment of the home loan, then it gives the significant effect overall. The women get the home loan at a lower interest rate, when they either become a co-applicant or become a primary applicant.
There is variety of benefits that has been offered to the women home loan borrower. If a house is registered on the name of a woman, then there are many states that offer lower stamp duty. Also, the stamp duty is charged at a lower rate comparatively when it involves the woman applicant. Such charges are helping to save lakhs of rupees when it comes to oral repayment of the home loan. Banks and lenders clearly prefer home loan application which has a woman as a co-applicant or as a primary applicant.
Different banks & different lenders charge different rate of interest as far as home loan is concerned. The interest payable is dependent upon two things that is tenure for which the loan has been availed and quantum of the home loan. The banks such as State Bank of India have launched various schemes for housing loan, especially for women applicants. The state bank of India has come up with a scheme named as “Her Ghar (Home loan for Women) at a concessional rate of interest. The state of bank of India is the most preferred bank to avail the facility of housing loan according to the CNBC. In fact, in India, the state bank of India sanctions one fifth of every loan.
The “Her Ghar” scheme is launched by SBI especially to attract the women home loan borrower. In this scheme, the home loan is offered at 8.30% rate of interest to women applicant that is at a reduced interest rate.
There are Two Conditions That Needs to be Met to Avail the Benefits
- Woman should be either the sole applicant for the home loan or at least she should be one of the co-applicant of the housing loan.
- The woman should be either the sole owner of the property or one of the co-owner of the property that is financed by the bank.
The Other Requirements That Needs to be Met as Well
- It is essential that the applicant is an Indian resident
- The applicant’s minimum age should be 18 years or more and less than 70 years as on date of sanction of housing loan.
- The applicant must have a regular source of income
- The applicant must have good credit history and CIBIL score.
If the applicant meets the above mentioned criteria, then it becomes easy to get the loan sanctioned for the woman applicant. But, if the applicant do not meet the eligibility criteria than it becomes difficult for her to get the loan sanctioned . In certain cases, the loan gets rejected as well. To increase the chances of sanctioning of the home loan, the applicant must focus on improving her credit rating and CIBIL score by paying off pending EMIs, credit card bill etc. Before applying for the home loan. Additionally, the woman applicant can add the spouse’s income or children as a roof that the family has a steady income. This shall bring sense of security to the lender as far as repayment of the home loan is concerned.
The “Her Ghar” Facility Offers Variety of Benefits and Features to the Women Applicants That can be Described as Follows:-
- The most significant benefit of this scheme is that SBI offers the home loan to women at concessional interest rate that is around 8.30%. This can be helpful to avail the benefit of the most affordable EMI that is around 867 rupees per lakh when it is to be calculated for 30 years of tenure.
- SBI also offers the flexible repayment schedule. The maximum tenure in terms of repayment of the home loan varies from 30 years to 70 years up to the borrower’s age is concerned.
- The bank offers the high quantum of home loan finance. The bank takes into the consideration various factors such as income, age, assets, liabilities, value of the property, repayment capacity of the borrower etc.
- SBI provides the minimum documentation such as passport size photographs, identity proof, residence proof, business proof for non-salaried people, dually signed home loan application form, assets & liability statements etc and hassle free process to apply and avail the home loan facility. The borrower can apply for the home loan online by following some simple steps mentioned on the website. If not, the applicant can even visit the nearest branch physically and apply for the housing loan.
- SBI has announced the MCLR (marginal cost of fund based lending rate) at 2% on 1st April, 2016. As the benchmark with respect to home loan will be 1 year of MCLR rate, the interest rate can be reset at every year.
The “Her Ghar” scheme of SBI not only helps to fulfil a woman’s dream to purchase her own house, but also supports variety of purposes such as repairs, renovation, and construction etc.