Home Loan Benefits for Women Borrowers in India

We all have heard people say, " A woman makes a home out of a house". Then why not build the home under the name of a woman?

 

Owning a home is still a dream for many Indians. Irrespective of gender, every progressive individual wants a house that he/she can call theirs[V1] . While taking a loan to purchase a home is common for men, a Home loan for women is still not that much popular in society[V2] . However, financial literacy and women empowerment campaigns have been an excellent catalyst[V3]  in making women realize that their safe future can't be guaranteed without their own house[V4] .

 

With this change in the thinking of this generation, many home loan providers have launched luring schemes to support this decision of taking home loans for women. Customized home loan schemes, simpler home loan eligibility, lower home loan interest rates are some[V5]  major lures offered by loan granters to attract female customers.

 

Let's have a close look at these home loan benefits for women borrowers:

 

1.  Repay on lower interest rates

 

The interest rate is the major factor while we consider taking a loan. That's why many home loan institutions have revised their home loan interest rates for their women borrowers. It is also because lenders consider women to be more reliable loan payers than men. While the difference in home loan interest rate might not be big, it still impacts significantly to Equated Monthly Installments (EMIs) and tenure of the loan. On average,[V6]  a concession of about 0.05% to 1% is offered on home loans for women.

 

         Let's understand this with an example.

 

Terms

For women

For men

Loan amount

60 lakh

60 lakh

Interest rate

8.30%

8.35%

Time period

30 years

30 years

EMI

45287

45498

Total interest Payable

1,03,03,346

1,03, 79,458

Total amount

1,63,03,346

1,63, 79, 458

Amount saved

76112

 

 

From the above example, you can see that women borrowers can save Rs. 76, 112 on a Home loan of Rs. 60 lakh as compared to the men borrower.

 

2.  Simple Home loan eligibility criteria

 

Apart from lower interest rates, women loan borrowers also get to enjoy easy home loan eligibility criteria. Many home loan finance companies have only age and 3 years of work experience as the eligibility required for women borrowers to take a home loan.

 

3.  Less stamp duty charge

A woman borrower can save substantial amounts through paying a [V7] lower stamp duty charge as compared to men. The home should be registered under her name to enjoy this concession. Estimated, a concession of approx 1-2%is offered by many state governments to promote women homeowners in their states. Delhi, Rajasthan, and Haryana are some major states that offer this concession.

 

4.  Home loan tax deduction

 

Any woman borrower is allowed to claim a tax deduction of up to 3.5 Lakhs. A deduction of up to 1.5 lakh on home loan repayment and up to 2 lakh on home loan interest rates can be claimed by the home loan taxpayer.

 

5.   Pradhan Mantri Awas Yojana (PMAY)

 

Not just the loan lending institutions but even the Government of India has launched a scheme to encourage female ownership of homes. Keeping female co-ownership mandatory, this scheme offers a subsidy of up to Rs. 2.67 lakhs. This scheme gives clear priority to women applicants elevating the women's homeownership percentage every year.

 

The time has come for women to complete their dream [V8] of owning a home. Private institutions as well as the government are offering multiple opportunities to women borrowers to ease home loan obstacles for them. Through simpler home loan eligibility and tax concessions, a home loan for women has become an excellent option to secure their future.


 [V1]Personal dwelling unit.

 [V2]…in the society.

 [V3]campaigns have worked as excellent catalysts

 [V4]a house of their own .

 [V5]loan eligibility, lower home loan interest rates etc are some

 [V6]. On an average,

 [V7]amounts by paying a

 [V8]to fulfil their dream

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Home loan benefits for women borrowers in India written by Yogendra