Home Loans for Women (Benefits)

16 May 2019

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All of us dream of become homeowners. It is a way of ensuring lifelong financial security; the kind that does not come from living in a rented home. But buying a home is a complicated process. Whether it is years of savings to be given as down payment, or finding the right locality to invest in; the process of buying a home is elaborate. And since property investments take a huge chunk of savings, most of us rely on home loans, which often last for over 2 decades. However, women borrowers have it a bit easy thanks to government home loan schemes for women. Let’s find out how women can benefit from home loans designed for them.

Reduced Rates of Interest

If you’ve ever purchased anything on a loan, you will know that even a point’s difference in interest rates can amount to a lot of savings. If your interest rate on the loan is high, you always end up paying more. In such a case, even a slight reduction in interest rates can make a lot of difference. This also affects your monthly EMI which is further reduced. Under the government scheme, home loan interest rates for women are reduced by 0.05% by most banks in the country. While this may seem like a small percentile, consider the following example:

Let’s say you take out a home loan of ₹50,00,000 form a bank for a tenure of 20 years. The bank offers an interest rate of 8.65% to its male borrowers and 8.60% to its female borrowers. In this case, the interest outflow for men is ₹55,28,083, but due to the reduced 0.05%, the interest outflow for women is ₹54,89,953. As a result, the savings in interest outflow for women borrowers’ accounts for ₹38,130.

Reduced Stamp Duty Charges

Stamp duty forms a part of the property cost, and the reduced interest rate can make a huge difference in reducing stamp duty charges too. Most lenders provide 80%-90% finance on home loans, with a set percentage of money paid in stamp duty char.ges. But as per the home loan subsidy for women, a concession of 1%-2% is typically applicable on stamp duty charges. If a woman purchases a property worth ₹50,00,000, she can save ₹50,000 to ₹1,00,000 on stamp duty charges alone.

Tax Benefits

Both, male and female borrowers are eligible for tax deduction on home loan repayments. The maximum tax deduction permitted in principal and interest repayments is ₹1,50,000 and ₹2,00,000 respectively. If a woman borrower applies for a home loan along with her husband, she can receive tax deduction in equal measures.

Longer Repayment Tenures

While male borrowers are typically provided with loan repayment tenures of 20 years and a maximum age of 65 years to repay the loan, whichever is early; home loans for women are offered for tenures of up to 30 years or up to 70 years of age of the borrower, whichever is early.

Keywords Used

Home loan for women, home loan subsidy for women, home loan interest rates for women, government home loan schemes for women.

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Home Loan Process at Bank of Baroda

Home Loan Process at Bank of Baroda
Owning a home gives you a sense of financial security. You can easily become a homeowner, thanks to a Home Loan. To make this type of loan more accessible to anyone in need, Bank of Baroda has made the loan application process even more convenient. Now, you do not need to visit the bank several times to get your loan approved. Indeed, you can get approval for your home loan from the comfort of your home. Yes, Bank of Baroda has streamlined the Home Loan process. You can start the loan application process online. Here are the steps you need to follow.
Home Loan Application Process
Visit the bank’s website to check your eligibility and EMI amount
The first step in the Home Loan process is to visit the Bank of Baroda website. Here, you can use the Home Loan eligibility calculator to check the maximum loan amount you can possibly get. You can also check your potential EMI amount by adjusting the sliders.
Fill the application form and submit the documents
Once you’ve checked your eligibility, you need to determine the type of Home Loan you need, and fill the loan application form accordingly. You can download the form from the Home Loan section of the website. You need to provide your necessary details such as your name, age, address, income and employment status, etc. You also have to provide copies of your basic documents such as your ID, age, and address proof, along with a scan of your passport-sized photograph and signature income documents, property documents etc. Once you send these documents, the bank verifies them.
Wait for the loan sanction letter
In the next step of the Housing Loan process, the bank sends you a sanction letter, mentioning the loan amount you can get. This letter is typically valid for 6 months, during which time you can avail disbursement
Home Loan Disbursal Procedure
Drawing up the loan agreement
After you’ve done your bit in the Housing Loan process, the bank takes over. It gives you the format to draw up the loan agreement. You need to execute the Home Loan documents in the manner as per state law. Some of states also require registration of documents. Ensure you read the loan agreement carefully as it contains all the terms of the loan, including how funds will be disbursed.
Funds are disbursed
Based on the clauses in the home loan agreement, the bank disburses the loan amount to you or the builder/seller. In case of loans for under-construction or ready-to-move-in properties, the loan amount is typically disbursed to the builder/seller. On the other hand, funds for Home Renovation loans are paid to you directly. If you opt for Home Construction or Extension Loans, the bank may disburse the funds in instalments, depending on how the construction is progressing. If you transfer your loan from another bank, the funds may be disbursed directly to your original lender.
Once the funds are disbursed, the Housing Loan procedure is officially completed. The loan lasts until you repay it in its entirety. As is apparent, the Home Loan procedure is indeed simple and straightforward. The partially online procedure makes it a great time and energy saver. So, visit the Bank of Baroda website to begin the Home Loan process today!

How does an EMI on debit card work?

With the exponential growth and increase in online shopping and the number of products available, the modes of payment for these purchases have also evolved. It is no longer necessary to pay upfront in cash. One very popular option that people use is to convert purchases into installments on their credit card. This system has become one of the preferred ways to buy consumer durables. However, for those people who do not have credit cards or who do not have a high limit on credit cards, there is another option; EMI on a Debit Card.
A debit card is like carrying your savings or current account with you. It is directly linked to the account and every purchase made debits the account directly. This means a debit card does not have any limit as such. The amount available to be spent in the bank account is the amount available to be spent for purchase.
With an increasing number of debit card holders, merchants and banks have come up with an option to convert high value purchases into an EMI on the debit card. If you’re wondering how to get EMI on debit card, this is the guide for you.
How EMI on debit card works?
The EMI process is extremely simple. Each bank has a certain minimum amount of purchase that has to be made. Once the total purchase amount at a merchant exceeds this defined amount, the cardholder gets an option on merchant’s Platform to make payment through Debit Card EMI.
After you select your EMI option, you need to enter your card details and validate them with an OTP. After the OTP is entered, your purchase will be made through an EMI.
Then the customer is given an offer based on Pre- approved Limit showing the approved loan amount, Rate of Interest , down Payment by the customer and Tenure. This offer needs to be accepted along with giving consent for Standing instructions for loan EMI recovery from Debit card linked savings account. The merchant charges some convenience fee to the customer and once this convenience fee and down payment is made by the customer to the merchant, the purchase will be completed.
One important point to note about EMI on Debit Card is that the bank charges interest for this facility. The rate of interest on EMI will differ from bank to bank. It also depends on the balance in your account and your relationship with the bank.
If you’re wondering how to avail EMI on debit card, then you should know that banks auto approve customers for this facility. Flipkart customers can send a message on a number which checks if you are eligible for this feature or not. If you’re eligible for this feature, it will appear as a mode of payment at the checkout page. It is pertinent to note that you must use the same email ID and mobile number with the e-commerce portal as you do with the bank for them to verify and make that option available to you on checkout.
The interest on EMI is not the only charge associated with this account. Some Banks also charge a processing fee for this. Some banks may charge a foreclosure fee as well. This schedule of charges varies from Bank to bank. It is best to inquire with the bank about these charges before converting your purchases into EMIs.
All major e-commerce portals offer you the option to convert your purchases into EMI. But before you avail this facility, check if there is a no interest or low interest EMI option. If you’re ready to pay interest on these purchases, you can opt for this facility.

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