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.
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