Home Loan Benefits for Women in India

Posted by Bhavna Singhal on March 3rd, 2020

Owning a dream home is on everyone’s priority list. It assures them that they have a secure place to live in for a lifetime. Considering the modern-day scenario, various financial institutions are coming up with various plans and multiple schemes on home loans which have some exclusive benefits included in them regarding the female population in India. Earlier home loans or any other kind of loan borrowers were usually males but in recent times, considerable growth can be seen in the number of female loan borrowers. 

What are the benefits?

The financial institutions are coming up with certain extra benefits for their female loan borrowers. Their main aim is to encourage and empower more and more women to be independent and stable. Let us have a look at the home loan benefits offered for women in India.

Have access to high amounts of the loan with simple eligibility criteria

To attract female borrowers, lenders are providing natural sanctions and are also coming up with simple home loan eligibility criteria for them. As a woman now you can have access to higher loan amounts easily for building your dream home. You need to be an Indian citizen and must have a work experience of at least 3years.

Have access to longer repayment tenors

Women loan borrowers also have access to longer repayment tenors that can last as long as 25 years. This brings down the pressure of loan repayment as the EMI amount that you need to pay becomes much less enabling you to concentrate on your other commitments as well. Further, no charges are made on making part-prepayments and foreclosing loans.

Low-interest Rates

While getting home loans, the rate of interest that you need to pay decides whether you will be able to get your dream house in a cost-effective way. Lenders believe women to be more reliable as borrowers. So, they have decided to keep the interest rates low for a loan for women borrowers. The interest rates can vary between 0.05% to 0.1% thus, bringing in a lot of difference in the net amount that is needed to be repaid.

Tax benefits

Under section 80C of the Income Tax 1961, borrowers can claim tax deductions of up to 1.5 lakhs on home loan repayment. Under section 24(b) of the Income Tax Act 1961, borrowers can claim tax deductions of up to 2 lakhs on home loan interest. This is applicable to both men and women home loan borrowers. In addition to all this, women borrowers who are applying for loans with their husbands are also eligible for these tax benefits on home loans. However, the couple must have the conveyance deed and the sale deed on their name as the owner of the property.

Lower stamp duty charges for women

Stamp duty is a compulsory tax that the state government imposes on any property during its sale or transfer. The stamp duty varies from state to state. The stamp duty depends on the usage of the property, its location, and its current status. The charges usually range between 4% to 10%. Since it is a part of the property cost a small % of change can bring a massive difference in the property cost. The state governments offer concessions on stamp duty if the property is registered by any woman’s name. It can be joint or sole ownership. 

Benefits from Pradhan Mantri Awas Yojna 

The Pradhan Mantri Awas Yojna gives particular reference to women. This encourages the concept of homeownership by women in the rural as well as urban areas of India. In recent years, it has led to an increase in the rate of women applicants by 6%. The PMAY also offers some add-on benefits to the women applicants.

• It is mandatory to have at least one woman in the house with her name registered as the owner of the property, excluding the fact that whether she is buying the property or not.

• Senior citizens preferably woman is eligible to get ground floor accommodation as per her convenience.

Getting a home of your own is a personal dream. In recent times, due to the stability in income and the considerable amount of beneficial features offered by the government as well as various financial institutions, more and more women are opting for home loans.