Stability and security: the case for women’s property ownership in India

For an economy to become ‘developed’, higher female participation in the workforce is critical. India has made significant strides in this regard, reflecting changing social norms, economic opportunities, and policy initiatives aimed at promoting gender equality. These efforts have led to increased home ownership among women, providing much-needed social security and economic independence.

What the numbers say: According to the National Family Health Survey, which covered 14 states in India during 2019 to 2021, ownership of land or property among women was higher in rural areas than in urban areas. Of the women respondents surveyed, 38.3% women in urban areas had house or land ownership compared to 45.7% in rural areas. This was in the case of women in the age-group of 15-49 years.

The real estate industry, along with respective state governments and the housing finance sector, offers several benefits for women home-buyers. These benefits include lower interest rates, reductions in stamp duty, and other advantages. Data analysis from various lending institutions indicates that loan default rates among women applicants are lower.

According to a TransUnion Cibil report on women’s participation in India’s retail credit market, the credit quality of women borrowers is higher than that of men —53% of women borrowers, compared to only 47% of men had prime scores (prime score range: 731-790+). Women borrowers have a much lower consumer level 90-day plus delinquency rate of 5.2%, compared to 6.9% for men borrowers, according to the same report.

Consequently, women have higher chances of being approved for property loans, along with additional benefits such as higher loan amounts and more flexible repayment tenures.

Property rights: The economic implications of home ownership for women in India are profound. Historically, women have been marginalized in terms of property rights, often relegated to dependent roles within the household. However, with increasing urbanization, education, and economic participation, women now recognize the importance of property ownership for financial security and independence. Owning a home provides women with a tangible asset that can serve as collateral for loans, enable entrepreneurship ventures, or secure financial stability in times of need. Moreover, property ownership opens doors to rental income, augmenting household earnings and reducing vulnerability to economic shocks.

In India, property ownership is intricately linked to legal rights and entitlements, particularly concerning women’s inheritance rights. Despite legislative reforms like the Hindu Succession Act of 1956 and subsequent amendments, customary practices, and societal norms often hinder women’s access to inherited property.

Advantage of MWP Act: The Married Women’s Property Act, 1874, is a significant legal provision in India that protects married women’s property rights regardless of gender, caste, or religion. It recognizes that married women have the right to own and manage property independently. This is crucial, especially when women contribute financially to the family or inherit property. It ensures that a woman’s property remains separate from her husband’s, allowing her to exercise control over it without dependence on him.

In cases where the husband faces financial difficulties or debt, the act provides financial security  for the wife. Her property remains shielded from creditors seeking to recover the husband’s debts. This protection is essential for maintaining stability and safeguarding the family’s well-being.

In conclusion, the upward trend in women’s home-ownership in India reflects progress toward greater gender equality and women empowerment. By continuing to address barriers and promoting inclusive policies, we can further enhance women’s role in shaping the housing landscape and fostering economic independence.

Kanika Singh is chief risk officer of India Mortgage Guarantee Corporation.