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25 MAY, 2021
Over the past few years, women in India have broken several glass ceilings. Lately, women have also become more aware and proactive about their financial stability. They are not only handling their finances better, but are also fulfilling their financial goals like purchasing a house, or travelling the world all by themselves. The best thing is, this change is getting widespread support from the government and financial institutions.
Specifically on home loans, women can enjoy several concessions and benefits that can help them reduce their cost of home-ownership. Lenders also offer customised products for women to nudge them towards home purchase.
Usually, lenders offer a discounted interest rate on home loans to women. It could be because most lenders consider women as more reliable borrowers, who are unlikely to default on repayment. The interest rates are generally 0.25% to 0.50% lower for women. Though this might appear to be a small difference, it has a significant impact on the repayment amount and EMIs.
The stamp duty rates are usually lower for women. Most state governments offer a concessional rate on stamp duty if the property is registered in the name of a woman or even if she is a co-owner. The stamp duty is usually 1% to 2% lower for women, which could mean a significant saving.
Home loan borrowers can enjoy tax benefits on their loan with the help of income deductions under the Income Tax Act, 1961. This tax benefit is available for couples as well as for individual applicants. Therefore, a woman applicant can claim a total deduction of up to Rs 3.5 lakh on home loan repayment from her taxable income. She can claim a deduction of up to Rs 1.5 lakh on repayment of the principal amount and Rs 2 lakh on the repayment of interest from her taxable income. If the woman avails a loan with her spouse, both can claim this deduction individually
The Government extends its support to women who invest in house property by providing them benefits under government schemes like Pradhan Mantri Awas Yojana (PMAY). Under this flagship housing scheme,women are prioritised over men for interest subsidy and benefits.
For any family to avail the credit subsidy under the PMAY scheme, a woman should mandatorily be at least the co-owner of the property.
Additionally, banks and financial institutions also have multiple promotional offers for women applicants on various occasions throughout the year. These could be in the form of a waiver on processing fee or an additional discount on interest rate, or even in the form of gifts and hampers.
Women taking care of their financial security is a welcoming change. Undoubtedly, investing in a house is a good start. Considering the home loan benefits for ladies and the low interest rates, the present time looks like the best time to avail a home loan and fulfil the dream of owning a home. Check your home loan eligibility online and apply for a home loan today!
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