When it comes to securing a Home Loan, women in India have some distinct advantages. Let's explore these benefits, which not only make home ownership more accessible for ladies but also empower them financially.
Home Loan benefits for ladies in India
Understanding the unique benefits of Home Loans for women in India is crucial. Let's delve deeper into these advantages:
1. Lower interest
As a woman, you're likely to receive a more favourable interest rate on your Home Loan. While the difference might seem minimal at first glance, it can lead to substantial savings over the loan's tenure. This slight reduction in interest rates can significantly decrease the total interest payable, making your Equated Monthly Installments (EMIs) more manageable. It's a strategic financial benefit that can make the dream of owning a home more attainable and budget-friendly for you.
2. Women benefit as co-borrowers
If you're considering a joint Home Loan, being a woman co-borrower can be particularly beneficial. It can enhance the overall loan eligibility, potentially leading to approval for a higher loan amount. This is especially advantageous for couples or families where women contribute to the household income. By combining your financial strength with that of your spouse or family member, you can increase your borrowing capacity, making it easier to finance a home that meets all your needs and preferences.
3. Women pay lower stamp duty and claim tax deductions
In many states across India, women enjoy the benefit of paying lower stamp duty on property purchases. This reduction, typically ranging from 1% to 2%, can translate into significant savings, particularly for higher-value properties. Additionally, as a woman homeowner, you can claim tax deductions on both the principal and interest components of your Home Loan under various sections of the Income Tax Act. These deductions can lead to substantial tax savings, further reducing the financial burden of purchasing a home.
4. Women can make use of schemes like PMAY
The Pradhan Mantri Awas Yojana (PMAY) is a government initiative that offers subsidy on Home Loans for ladies. This scheme not only provides financial relief through interest subsidies but also mandates the inclusion of a woman as a property owner. This requirement promotes homeownership among women and ensures that they are integral stakeholders in property investments. By availing PMAY home loan subsidy for females, you can significantly reduce the cost of your Home Loan, making homeownership more accessible and affordable.
5. Women can choose longer repayment tenors
Longer repayment tenors are a significant advantage for managing your financial obligations without stress. As a woman, you often juggle multiple responsibilities, and having the option to extend your loan repayment period can ease the monthly financial burden. This flexibility allows you to choose a repayment plan that aligns with your income flow and other financial commitments, ensuring that your Home Loan doesn't become a financial strain. With longer tenors, your EMIs are spread out over an extended period, making them smaller and more manageable within your monthly budget.
Why should women take a Home Loan?
1. Favoured applicants
Financial institutions often view women as more reliable borrowers. This perception can lead to quicker loan approvals and more favourable loan terms for women.
2. Specialised schemes
Many banks offer specialised Home Loan schemes for women. These schemes may come with added benefits like lower processing fees or additional offers, making them an attractive option for women borrowers.
3. Right time to buy
With the current focus on empowering women financially, it's an opportune time for women to invest in property. The array of benefits available makes it a financially prudent decision.
Also Read: Buy your dream home even if you are in your 40s
The takeaway
These Home Loan benefits for women not only facilitate their dream of home ownership but also strengthen their financial independence. With institutions offering benefits and subsidy on home loan for ladies, now is an opportune time for women to step forward and make their home-owning dreams a reality.
FAQs
1. What are the eligibility criteria for Home Loan for women?
Eligibility criteria typically include age, income level, employment status, and credit score. Banks may offer more flexible criteria for women to encourage their homeownership.
2. Can both husband and wife claim Housing Loan benefits?
Yes, if both are co-owners and co-borrowers of the property, they can individually claim tax benefits on the Home Loan.
3. Who can be a co-applicant in a Home Loan for women?
A co-applicant can be a spouse, parent, or sibling. Including a co-applicant can increase
the loan eligibility and the chances of loan approval.
4. Is the EMI lower if the Home Loan applicant is a woman?
Yes, due to the lower interest rates offered to women, the EMI for a Home Loan can be lower compared to loans availed by male applicants. This makes the loan more affordable and manageable for women borrowers.
Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.
