5 Reasons Why Women Should Be Primary or Co-applicant When Purchasing a House

Women home loan applicants borrowing more than men | Housing News

Our society is progressing and becoming more egalitarian, and women are now financially more independent. There is a rise in the number of women buying houses. To support this change, banks provide home loans specifically for women to help ease their process of purchasing a house.

The following are the five reasons why a woman could be the primary applicant or co-applicant for home loans when purchasing a house:

  1. Lower Interest Rates: Home loans specifically for women have lower interest rates; this makes paying it back a lot easier. On paper, the interest rate for women may not appear substantially different or lower; however, a minute difference of 0.1% on interest can also make a difference to the EMI and long-term payment. This is so because home loans are for longer periods, such as 10-15 years. When calculated on a Home Loan EMI Calculator, the final amount that a woman must pay as interest is vastly lower than that for men.
  2. Lower Stamp Duty: Stamp duty is a mandatory fee that a buyer must pay while registering their property with the government. In most states, women pay lower stamp duty for their properties. The difference in the payment is substantial. For instance, in Delhi, a man is charged a stamp duty of 6%, whereas it is 4% for women. Additionally, on particular days, such as Women’s Day, some states, like Maharashtra and Karnataka, charge a significantly lower stamp duty for women. 
  3. Tax Deductions: Properties owned by women get certain tax advantages. To encourage women to buy more properties, the government provides them with tax benefits on their home loan payments. Women can get a maximum tax deduction of up to Rs. 1,50,000 on their principal sum and Rs. 2,00,000 on interest repayment. If a woman is a co-applicant with her husband, the couple can take advantage of a tax deduction for a maximum of Rs. 3,00,000.
  4. Government Policies: Many government policies help women become financially independent by reducing the interest rate on a property for a home loan if purchased under a program. For example, if a woman takes a home loan to buy a property registered under the Pradhan Mantri Awas Yojana (PMAY), they are given certain interest subsidies. Women from lower economic segments are given up to 6.5% subsidy on their interest.
  5. Higher Tenure: While procuring a home loan, one must decide the tenure for the loan from the available options. Usually, if the loan tenures are longer, the interest rates are lower. Even so, one can always choose to repay a loan early. The home loans for women provide longer-tenure options for repayment that go up to 25 years. This eases the financial burden on women, as they can pay lower EMIs.


There are multiple subsidies and programs in home loans for women that encourage them to buy their own homes. So, the next time you’re buying a property and taking a home loan, consider a woman to be your co-applicant or even a primary applicant.