You have found your dream house and in an ideal location. You decide to apply for a home loan with a bank or NBFC that offers a good rate of interest on the loan. And then, your loan application is rejected. The reason? You are a pregnant woman.
When you apply for a home loan, you are required to furnish up-to-date information on your earnings and investments. This would help the lenders to assess your repayment capacity. You will also need to make sure your credit score is good and you have not defaulted on any of your previous loans. While gender and maternity aren’t part of the home loan eligibility criteria, there are a few banks that might reject your loan application due to these factors.
Would banks consider pregnancy a deterrent for sanctioning a loan?
Even when a woman is on paid leaves and fully intends to return back after delivery, many banks do not consider her an earning member until she actually returns to work. Banks even refuse to consider a letter from woman employees and their employers, specifying the exact date of return to work. They assume that she will give up her job after giving birth to her child. However, such type of mortgage discrimination is illegal. If both husband and wife have applied for a joint home loan, the lender may sanction the amount pertaining to husband’s salary only.
Many such cases have gone into the courts in the west. Invariably, the woman and her family get compensated for the inconvenience and stress caused.
Being unmarried might also prevent you from getting a loan:
There have been many cases in India where women have been denied home loans simply because they are single. In most cases, banks have asked women to bring in a co-applicant before they process the loan. Banks claim that there have been cases where women have defaulted on loans after getting married. So, they want a co-applicant as a guarantor. A guarantor will help the banks to recover the loan from them if the woman fails to repay the loan.
Hence, when you apply for a home loan with any bank or NBFC, make sure that your lender does not discriminate—based on your gender, your marital status, or your pregnancy when processing the application. This can save you a lot of time and wasted effort.
Crucial things to keep in mind before applying for a home loan:
There are certain things to keep in mind, especially when you are planning to bring a new life into this world. Don’t ever trust the builder blindly and opting for a ready to move in property is a better option. The property should be approved by the government and municipal corporations. Don’t hesitate to ask questions like whether the property has NOCs or whether they provide occupancy and possession certificate without any hassle. However, banks will also verify the property and builders and validate them. You can also find the list of approved properties on the bank’s website.
In conclusion, pregnancy is a beautiful phase for both husband and wife. And it requires a lot of courage to invest such a big amount during this phase of life. However, a planned effort and a little bit of financial discipline can get your child a stable life in the world.