A personal loan is a type of unsecured loan that helps you meet your current financial needs. You don’t usually need to pledge any security or collateral while availing of a personal loan. It can serve as a solution for managing your travel costs or wedding expenses, as well as the expenses of a medical emergency, home renovation etc.
Nowadays, women tend to take up more outstanding personal loans than the previous time. Especially in this year, the number of women taking out loans went up by 7.41 %. The rise in the graph is due to the pandemic scenario where they require better space and privacy. To fulfill the aspiration of owning a home or to meet the other essential expenses, women are taking up small personal loan.
Due to this reason, the government has introduced various schemes, including personal loans for women. Also, so many working women are now considering financial independence to be the priority. In recent times women borrowers are also given incentives through various schemes, including preferential rates and lower property registration charges. Moreover, with multiple opportunities and unique attractions towards the small personal loan government, women are also encouraged to play the role of co-borrower. It can help to get the loan at a lower personal loan interest rate. Also, the loan eligibility of the family increases with the co-borrowing.
Tips to consider before you apply for any personal loan for women
Loan sanction chances improve.
Women are better credit managers while ensuring complete and timely repayments. Any applicant who has such strong credentials has an improved chance of getting the loan. The stable income and good credit scores are the advantages that can add to the circumstances of easy and fast loan sanctioning.
Reducing rates of interest
Whether women are primary applicants or secondary applicants, they can have lower personal loan interest rates than men in the case of personal loans. The difference can be from 0.05% to 20.1 percent in some cases. For example, if the male borrowers get a personal loan with an interest rate of 6.75%, and if he adds his wife as the co-applicant, the interest rate will be reduced by 0.10 percent. To improve the cash flow and lower the interest, the woman can be the primary applicant or even the secondary one. Therefore, it is beneficial to take up personal loans for women.
Financial institutions offer personal loans to women with a flexible repayment tenure of up to 60 months. A longer tenor helps in reducing the cost of EMIs while the total interest payable will increase. Therefore, it is important to keep this factor in mind while opting for a loan tenor.
Concessions in the stamp duty fees
The stamp duty contributes to the overall property acquiring cost. A woman loan borrower can create up to 1% to 2% on the stamp duty charges. It means that if the property is 40 lakh INR, she can save up to Rs.40000 to Rs.80000 in the area of stamp duty charges. These concessions can add up to the advantage of women being the primary applicant.
A low income personal loan makes it possible for all the co-borrowers to claim the benefits related to the tax deduction. One can avail of it only after paying the principal amount and the interest. All the co-borrowers can get benefits up to Rs.1.5 lakh. In contrast, you get Rs.2,00.000 on the interest payable.
Better EMI facility
Generally, one has to pay a good amount of EMI every month to pay off the loan amount. But with women acting as a primary applicant for the loan amount, they get better facilities on EMI option.