Today, many financial institutions in India extend a range of exclusive benefits for women home loan applicants. Read on to know more about the benefits.
In India, buying a home is one of the most important financial goals for many families. Typically, the lenders offer home loans for 20 to 30 years, and owing to its longevity, the repayment of the loan can sometimes be a financial burden. But, the high cost can become more affordable and manageable if the primary loan applicant is a woman.
Today, as more and more women are becoming financially independent, they want to own a home themselves. To support their endeavour and encourage more women to apply for a home loan, the financial institutions offer a wide range of exclusive benefits. Let us look at some of the benefits you are entitled to.
Discounted Rate of Interest
Most lenders in India believe that women are more responsible and reliable borrowers than men. To encourage them to own a property, they offer loans at a special interest rate. Typically, the interest on home loans for women is a few points lesser than the prevailing market rate. The lower interest rate means the EMI is more affordable, and the repayment becomes much easier. Also, reduced interest leads to significant savings in the long-run.
Easy eligibility criteria
When you apply for housing loan, you must be aware of the lender-specific eligibility requirements. Typically, most lenders have easy qualifying criteria for women applicants, making it easier for all to get the desired funds. The most common eligibility criteria that lenders have include:
- You must be a citizen of India
- You must be aged between 21 to 65 years at the time of applying for a loan
- You must be a salaried employee or self-employed and have a regular source of income
Reduced Stamp Duty
When you purchase a new home, you must pay stamp duty. It is one of the necessary expenses you incur, and it usually ranges from 1% to 3% of the property’s value. But, many state governments offer a discount on the stamp duty to women home loan applicants. So, if you are applying for a home loan, you can save to Rs. 80,000 to Rs. 1,60,000 on the stamp duty.
All tax-paying women in India are eligible to claim tax benefits on home loans. Under Section 80C of the Indian Income Tax Act, you can claim tax benefit up to 1.5 lakhs in a financial year on the repayment of the principal home loan amount. Also, under Section 24(b), you can claim tax benefit up to Rs. 2 lakhs on the home loan interest repayment.
Benefits under PMAY
The Pradhan Mantri Awas Yojana is one of the landmark affordable housing initiatives that was introduced by the central government of India in 2015. Under the scheme, the government makes it mandatory for all home loan applicants to include a woman member in the family as a co-owner of the house to avail of the subsidy of Rs. 2.67 lakhs on the home purchase.
The scheme also aims to provide financial help to single women and widows from the EWS (economically weaker section) and LIG (lower income group) categories and empower them to be homeowners.
Thus, there are many benefits that you can avail of as a woman when you apply for a home loan. So, it is paramount that you know your rights and take advantage of it and get one step closer to making your dream of being a homeowner come true.