Home Loan Benefits For Women

By Author: Fayeem
Total Articles: 86
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Finding a dream home is like getting yourself an assurance of the lifetime stay, which cannot be achieved on rented accommodation. In pursuit of your dream home, you can invariably rely on a home loan that can be availed for as long as 20-30 years. Since the home loan tenure is long, the final loan cost from the customer end can be high. However, in the case of a women borrower, the loan cost can be modest. With the increasing participation of women in the workplace which is making them financially independent.

Furthermore, they also weigh in on big decisions of life, like purchasing a home for their families. This disposition in home loans to create a unique scheme and opportunities for women to acquire their own homes with some unique home loan benefits. Moreover, home loans in Delhi provide multi-fold benefits for ladies.

Lower interest rates

Many lending institutions accommodate lower interest rates for women applicants, which has a huge impact on Equated Monthly Instalments (EMIs) and renders significant savings over the tenure of the loan. In fact, women borrowers enjoy a concession of 0.05% in the ...
... interest rate from most banks in India.

Women benefit as co-borrowers

Women have the opportunity to apply as co-borrowers with their spouses. The combined income of the couple generates higher loan eligibility and more flexibility in choosing a suitable home for their family. Furthermore, like their male partners, women can also enjoy a tax deduction on the home loan repayments with the maximum deduction allowed in principal as well as the interest at Rs. 1.5 lakh and Rs. 2 lakh respectively.

Presently the Pradhan Mantri Awas Yojana (PMAY) has made female co-ownership mandatory for a female head of the family. In the Economically Weaker Section (EWS) and Low Income Group (LIG) segments of the PMAY scheme, including widows and single women.

Reduction in Stamp Duty

The government is encouraging homeownership for ladies as well. Home loan benefits for women include lower stamp duty charges by 1-2% by many state governments. Therefore, she can save Rs. 80,000-Rs. 1,60,000 on a property worth Rs. 80 lakh.

Stamp duty does form the part of the property cost, and a difference of a few percentages can make a huge difference in your homeownership cost. Banks capitalize a home loan at about 80%-90% of the property cost. As far as stamp duty goes, it differs from one state to another. A concession of 1%-2% is generally applicable and therefore on a property of worth Rs 60 lakh, a female borrower can save around Rs 60,000-1,20,000.

Tax Benefits

Women borrowers are eligible for a tax deduction on the home loan repayments, just like the male counterparts. The maximum tax deduction allowed in the principal and interest repayments is Rs1.5 lakh and Rs 2 lakh, respectively. While applying for a Home Loan in Delhi, women with their husbands can receive the tax deduction in an equal proportion.