India is entering a new era in diverse ways; one that we can address with great pride in the growth in the number of women becoming financially independent. This finance independence has led to an increase in the graph of women borrowers for home loans. Because of the upsurge in the female borrowers, one can witness a spike in the home loan schemes available for women. And these schemes come along with an array of home loan benefits for ladies. Some of the additional perks like low-interest rate and simple eligibility has encouraged and empowered many ladies to invest in property by taking loans under the category ‘housing loan for women.’ There are enticing offers catered to women who are looking for purchasing a home or investing in property, and there are customized housing loans for women, making it a convenient choice. Under the current laws, Government home loans for women in India encompassed many benefits for the ladies. Here is a brief on the same:
1. Lower interest rates for women borrowers
Most of the lenders believe that women borrowers are trustworthy and reliable, and this is the reason for their support and encouragement for housing loans for women along with home loan benefits. As part of the benefits, special home loan rates are catered with a few points lower than the standard market rate. This ease is giving to the ladies as it would make it more affordable to borrow and repay a home loan. The interest rate on the subsidized home loan maybe around 0.05% to 0.1% lower, this would make a significant difference on the EMI making loan repayment easy for the borrower.
2. Access to high amounts with simple eligibility criteria
High amounts and simple eligibility rates is another home loan benefit for ladies. For instance, a women borrower can have home loan access to amounts from Rs. 30 lakhs to Rs 3.5 crores, along with lenders sanctions to attract more women borrowers. Apart from this, there is an additional benefit of simple eligibility criteria, easing the home loan application for the women.
3. Choice of longer repayment tenures
Another benefit of the housing loan for women is the flexibility of tenors. A woman borrower can pick a tenor up to 25 years to repay the loan amount, which results in lower EMIs. There is more convenience added to this benefit as there are no charges levied on foreclosures or part-prepayments of the loans.
4. Low stamp duty and claim tax deductions
Most of the state governments charge lesser stamp duty, nearly 1%-2% lesser than the male borrowers. Although the percent of charges may seem nominal, considering the total cost of the property and while calculating the same, the woman borrower is saving a considerable amount. There are more benefits from housing loans for women as the lady can claim up to Rs. 1.5 lakh from the tax deductions and Rs. 2 lakhs on principal and interest repayment for a self-occupied home.
5. Use of schemes like PMAY
The Government of India has leveraged many schemes for the women borrower, one of the benefits it showed in the Pradhan Mantri Awas Yojana (PMAY) is, a woman must have co-ownership along with this the lady will have the benefit of interest subsidy up to Rs. 2.67 lakh. This scheme gives significant preference to women applicants, resulting in a surge of 6% of women applicants for housing loans in India.
Irrespective of man or woman, it is always good to be financially independent, especially when there are so many benefits and value-adding opportunities offered by the Government and financial institutions.