Anita Agarwal, a 32-year-old single woman, works as a senior manager at a reputed multinational company. She had quite a harrowing time when she recently tried to avail of a home loan, in spite of her seven-figure pay package. Banks told her she would not be eligible to get a home loan unless she brought in a co-applicant.
The moving advertisements on the subject notwithstanding, Agarwal and others like her — single, working women — often find it difficult to avail of loans, as lenders are usually apprehensive about a change in their employment and marital status in future.
Here are a few things a single, working woman discovers when she goes to the bank for a home loan:
- Most banks do not lend to a single woman unless she has a co-applicant.
- If she chooses to make her mother a co-applicant, the lender may still have a problem.
- Banks often seek guarantors for providing a loan to a single woman.
- Banks also ask her for security, other than the primary collateral.
However, if you are a single, working woman looking to fund your dream home by taking a home loan, here are a few tips to make your journey smoother:
Be at your best
Always keep in mind that the stronger is your case, the fewer will be the bank’s conditions for sanctioning a home loan. It is always prudent to bring out your strong points while applying for a home loan. The proofs of salary increments, bonuses and reimbursements or promotion make your case stronger. A previous good repayment track of loans closed can also be presented to the lender to highlight your track record. Besides, if you choose a bank in which you have a running account, the lender will already have an idea of your credibility.
Prepare for the payment
As the road to obtain a loan may not be smooth, try to keep the loan amount as light as possible. For instance, for a house worth Rs 50 lakh, it would be ideal for you to use Rs 25 lakh of your own savings. While this will give the bank an insight into your strong financial position, it will also keep your loan burden lighter. Also, while doing the calculation, keep in mind the extra expenses involved in the transaction, such as stamp duty, registration cost, insurance amount and various other taxes.
Find the best option
On the brighter side, though availing of home loans is difficult for single, working women, if they are able to meet the stiff terms and conditions, there also are benefits for such applicants. Many banks offer home loans at lower interest rate to woman applicants. For instance, public-sector lender State Bank of India’s Her Ghar scheme offers attractive interest rates and flexible repayment options to women. Apart from that, stamp duty charges are also lower for women. Do a proper research of the products specially designed for you and shortlist the one that best caters to your needs.