Benefits on Home Loan for women
July 30, 2020
As a woman, if you apply for a Home Loan as a sole owner or a co-applicant, you can avail of a range of benefits on that loan. Read further to know more.
Today women are making revolutionary career choices to be financially independent. Whether it is sports, adventure, fashion, or any other field, women are ruling the roost. Just like being financially confident is the aim of life, they are also taking active and equal part to accomplish big milestones of their life, like buying a home. There is also an increase in the number of women buying homes considering factors like lower interest rates, eligibility criteria and extended repayment tenure.
Buying a home is undoubtedly a big financial decision you will ever make in your life. With real estate prices skyrocketing, it is difficult for any person to buy a home without any credit. Here Home Loan becomes a necessity. As a woman, if you’re purchasing it solitarily or you are a co-applicant, you are bound to get a Home Loan benefit.
Benefits on Home Loan for women:
- Lower interest rates: Women applying for Home Loan have the privilege of getting discounted or special interest rates. When it comes to offering special concession on the interest rates for Home Loan, ICICI Bank provides Home Loans at a special rate of 8.10% per annum. The woman should be the main borrower of the loan or just a co-applicant to be eligible for special rates.
- Reduced stamp duty: The Indian Government states that women Home Loan borrowers can avail of a discount on stamp duty ranging from 1% to 2%. In this way, they can save around Rs 50,000 - Rs 1,00,000 on a property worth Rs 50 lakh.
- The benefit of PMAY Scheme: Under the Pradhan Mantri Awas Yojana, a woman needs to be a co-owner to avail of a subsidy of Rs 2.67 lakh on a home purchase. The scheme also aims to provide benefits on Home Loan to single women and widows who belong to Economically Weaker Section (EWS) and Lower Income Group (LIG) categories.
- Tax benefits: When you’re applying as a co-applicant along with your spouse for a Home Loan, you get to apply for a higher loan amount. Just like males, even females can claim Housing Loan tax benefit. If you’re applying independently, you can claim tax deductions up to Rs 1.5 lakh on the principal amount under Section 80C, while you can also save Rs 2 lakh, if you claim for a tax deduction on interest under Section 24. On the other hand, if you and your spouse are jointly taking the Home Loan, you can claim tax deductions up to Rs 3 lakh on the principal under Section 80C, while Rs 4 lakh on interest under Section 24 of the Income Tax Act.
Now that you know the benefits extended by the lenders to women borrowers, they should consider buying a home as chances of getting loan approval becomes high. Lenders also encourage women to apply for a Home Loan, as the default rates among females are lower. If you’re planning to purchase a new home, you can avail of the loan advantages.
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