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One way the Indian government and lending institutions have encouraged women empowerment is by offering exclusive perks to women applicants (like lower home loan interest rates). So, if you are sitting on the fence regarding a housing loan, get to know these exciting benefits women can enjoy.
“There is no tool for development more effective than the empowerment of women.”
-Kofi Annan, 7th UN Secretary General
Benefit #1 Lower home loan interest rates
As a woman borrower, you get the advantage of lower interest rates. Lenders offer women borrowers lower home loan interest rates in India because they consider them to be more reliable and also to encourage them to become homeowners.
Though the reduction maybe just a few points, say 0.05% or 0.1%, it will still have a significant impact on the total home loan interest you need to pay. Hence, the repayment experience becomes smooth and comfortable.
Benefit #2 Income tax benefits
As per Section 80 C and Section 24 of the Income Tax Act, women borrowers are also eligible for tax deductions on the principal amount (up to a maximum of Rs. 1.5 lakhs) and home loan interest (up to a maximum of Rs. 2 lakhs) respectively.
And when applied with their spouse as a co-applicant, each will be eligible for tax benefits to the proportion of their contribution towards home loan repayment.
Benefit #3 Reduced stamp duty charges
Buying a house involves a lot of costs, one such being stamped duty charges. As per the rules of most state governments, women borrowers are to be charged 1 to 2% lower stamp duty charges as compared to their male counterparts.
Though this percentage cut may seem insignificant, when considering the total property cost, it becomes highly profitable. For instance – woman home loan borrowers may save Rs. 50,000 to Rs. 1,00,000 on a property worth Rs. 50 lakhs.
Benefit #4 PMAY is a game-changer
The housing-related government scheme of 2015 – Pradhan Mantri Awas Yojana – has further given women exclusive benefits. The program has made women co-ownership a mandate and offers a home loan subsidy of a maximum of Rs. 2.67 lakhs.
And what’s more, is that female applicants are given preference!
Benefit #5 Higher home loan eligibility and accessibility
Applying for a home loan as a woman also has perks in terms of home loan eligibility and accessibility. Women can apply for a joint loan with their spouses to access a higher principal amount.
Moreover, some lenders also allow women borrowers to choose a longer repayment term. You can use a free online home loan calculator to know the principal amount you are eligible for.
With so many benefits involved, you have no reason to delay homeownership. However, before applying for a home loan online, compare lender offerings, and use useful online tools such as a home loan EMI calculator. Using this calculator, you can determine your affordability and plan your EMIs to avoid defaults. Happy house hunting!
“If you want to run for Prime Minister, you can. If you don’t, that’s wonderful, too. Shave your armpits, don’t shave them, wear flats one day, heels the next. These things are so irrelevant and surface to what it is all really about, and I wish people wouldn’t get caught up in that. We want to empower women to do exactly what they want, to be true to themselves, to have the opportunities to develop. Women should feel free.”– Emma Watson
Krystle Cook – the creator of Home Jobs by MOM – put her psychology degree on a shelf and dived into a pile of diapers and dishes instead. She is a wife and mother to two rambunctious boys, sweating it out in her Texas hometown. She loves cooking, DIY home projects, and family fun activities.