Buying a house is unquestionably a significant financial decision you will ever make in your life. With increasing real estate rates, it is challenging for any individual to purchase a home without any loan. With many women growing financially independent, there has been a rise in female borrowers for home loans. This has raised the number of home loan schemes available to women.
The added privileges, like easy eligibility and more moderate interest rate, administered to women who apply for housing loans, has significantly inspired women borrowers and has enabled them to invest in property and become homeowners. As a woman, if you’re buying a home solely or you are a co-applicant, you are bound to receive a Home Loan benefit. Mentioned below are some reasons why customised home loans for women are such a popular option and how woman home loan borrowers can take benefit under prevailing laws.
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Advantages on Home Loan for Women
Reduced Interest Rates
Banks consider women to be more responsible borrowers, and to inspire them to own assets like home; banks offer specific home loan interest rates that are some points below than the prevailing market rate. This makes it more affordable for women to obtain a home loan and repay it. While the subsidised home loan interest rate may be only 0.05% to 0.1% lower, it has a vital influence on the EMI and makes repayment more stress-free for you.
Reduced Stamp Duty
As per the policies of the Indian Government, women Home Loan borrowers can get a rebate on stamp duty varying from 1 per cent to 2 per cent. They can save about Rs 50,000 – Rs 1,00,000 on a property worth Rs 50 lakh with the help of this policy.
The Advantage of PMAY Scheme
To receive a grant of Rs 2.67 lakh on a home purchase under the Pradhan Mantri Awas Yojana, a woman is required to be the co-owner of the said property. The scheme also intends to render benefits on Home Loan to widows and single women from Lower Income Group (LIG) or Economically Weaker Section (EWS) category.
Tax Advantages
Women are eligible for receiving a higher loan amount when applying as a co-applicant along with your husband for a Home Loan. Just like men, even women can claim home loan tax benefit. If you apply for a home loan individually, you can demand tax deductions under Section 80C up to Rs 1.5 lakh on the principal value. While if you claim a tax reduction on interest under Section 24, you can also save up to Rs 2 lakh. On the other hand, if you and your spouse are collectively obtaining the Home Loan, you can claim tax deductions under Section 80C up to Rs 3 lakh on the principal value, during a rebate of Rs 4 lakh on interest under Section 24 of the Income Tax Act.
Now that you know the benefits extended by banks to women borrowers, women should consider buying a home as possibilities of getting loan approval becomes higher. Banks also promote women to apply for a Home Loan, as the delinquency rates among females are lower.
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