Benefits of Home Loan for Woman
- In modern times, women are becoming more financially independent and taking on revolutionary career choices. Be it sports, Finance, public policy, fashion or any other career choices.
- Women are also getting more involved in owning and purchasing properties than ever before. As per the statistics, until Dec 2019, women occupied 29% of home loans in India and increasing every year. It is also noteworthy, the ticket size of the women was also larger than men. Studies have also suggested that the delinquency rate for women taking home loans is lower than men. Female borrowers are also considered less risky by lenders. Women are more involved in taking such decisions because of factors such as lower rate of interest, eligibility criteria, and extended repayment tenure.
- Banks offer a range of offers to women applying for home loans as a sole owner or co-applicant. Purchasing a home is a big financial decision for salaried women. It is difficult for any person to buy a home without credit options. Hence, home loans come into the picture. As a woman, if you are planning to buy it alone or are a co-applicant, then you are bound to get home loan benefits.
What are the benefits of Home Loan for women?
- Lower interest rates: Banks offer discounted and special home loan interest rates to women Women have to be either the primary borrower or a co-applicant to avail these interest rates.
- Concession on stamp duty: According to the Indian Government, women Home Loan borrowers can avail of a discount from 1% to 2% on stamp duty. So, the women borrowers can save up to ₹ 1,00,000 – ₹ 150,000 on a property worth ₹ 70-80 lakhs.
- PMAY (Pradhan Mantri Awas Yojana) Scheme: Under this scheme, a woman can avail a subsidy of ₹ 2.67 lakh on purchase of home loan by being a co-applicant or owner. It also provides home loan benefits to single women and widows belonging to EWS and lower-income groups.
- Women borrowers, while applying for a Home Loan along with your spouse, you get to apply for a higher loan amount.
- Tax benefits: Women borrowers can also claim tax rebates up to ₹ 1.5 lakh while applying independently under section 80C and ₹2 lakh if you claim the deduction under section 24. If you are taking the home loan jointly with your spouse, you can avail tax deductions up to ₹ 3 lakh under section 80C and ₹ 4 lakh under section 24 of the Income Tax Act
Conclusion: The lenders offer several benefits to women home loan borrowers, and the loan approval rate is also very high for women borrowers. Lenders also encourage women to apply for a home loan as the default rates among women are lower.
If you’re planning to purchase a new home, you can avail of the loan advantages.