As women become financially independent, increasing numbers of women are gaining the financial means to own their homes. The Government and private lenders both offer special perks to women borrowers to encourage them.
Here are seven such benefits that women borrowers can access.
- Specially designed home loan schemes
Many lenders offer loans specifically designed for women to encourage women to apply for home loans in their own names.
- Decreased interest rates
Women borrowers can enjoy reduced home loan interest rates, lower by up to 0.10% compared to rates for men. This decrease in interest rate, however small, changes the home loan EMIs considerably. Women can save on the total interest over the loan tenure with these reduced rates.
- Tax benefits
It is no secret that home loans are tax-saving loans. Both the principal and the interest on the loan can be quoted for deductions from taxable income. Women borrowers, independently or jointly, can also enjoy the tax-saving benefits of home loans.
The principal amount of the loan and stamp duty paid is allowed as a deduction under Section 80C up to Rs.1.5 lakhs. The interest paid qualifies as an exemption under Section 24B, up to a maximum of Rs. 2 lakhs. Moreover, if women are first-time home buyers and the stamp duty value of the house doesn’t exceed Rs. 45 lakhs, an additional deduction of up to Rs. 1.5 lakhs is allowed on the home loan interest under Section 80 EEA.
- Simpler eligibility requirements
Lenders relax several eligibility criteria to incentivize women borrowers to apply for a home loan. Women can apply for a home loan with simple eligibility parameters that enable easy loan sanction. If women apply to home loans as co-borrowers, the overall eligibility qualifications improve, making it easy to avail the loan with favourable terms.
- Special benefits under the Pradhan Mantri Awas Yojana
The Pradhan Mantri Awas Yojana (PMAY) scheme is meant to promote affordable housing in India and makes special provisions for women. For borrowers belonging to the EWS (Economically Weaker Section) and LIG (Low Income Group) categories, the female head of the family should be made the co-borrower of the house being financed through the scheme. The scheme also includes special provisions for widows and single women borrowers.
- Lower charges on stamp duty
State governments levy stamp duty, which is expressed as a percentage of the property’s cost and vary depending on the gender of the borrower. Women face lower charges of between 1% to 2% depending on the state. This reduction in stamp duty charges makes it more affordable for women to own a house in their name.
- Favourable loan terms
The terms and conditions of the home loan are favourable for women borrowers. They can avail a higher quantum of loan and also get longer repayment tenure. This allows them to find an affordable EMI using the home loan EMI calculator.
Home loans are, therefore, beneficial for women borrowers. If you are a woman and looking for a home loan, you can use CRED’s home loan eligibility calculator to check your loan eligibility. Men can add women co-borrowers to improve their loan eligibility and get home loans at better terms. Whichever you choose, the home loan calculator offered by CRED helps you find the most affordable EMI for the loan.