In today’s modern world, women are leading the change from the front and are rightfully taking their place as equals. They are becoming more independent, becoming head of the family, and making their own choices relating to critical matters like buying a new home.
As the number of women applying for home loans has increased significantly in the past few years, many lenders are offering them benefits to encourage them further. Let us look at some of the special home loan benefits for women.
Lower interest rates for women borrowers
Many lenders in India believe that women are more financially responsible than men. To encourage them to borrow loans and own assets like real estate property, lenders offer special home loan interest rates for women, which is a few points lower than the market rate.
Although the discount on interest rate for women home loan borrowers is only 0.05% to 0.01% lower than the interest rate offered to others, it can help you save a significant amount on the interest payment in the long run. Remember, home loan is a long-term financial commitment, and you must repay the amount over a period of 10-15 years. Thus, with every EMI payment, you save a small amount, which can add up to a considerable sum over the full loan tenure.
Also, since the interest rate on home loans for women is lower than others, the EMI becomes much more affordable, and you can easily repay the amount without compromising on your other financial goals or regular expenses.
Simple eligibility and access to a higher amount
Many lenders in India have simple home loan eligibility requirements for women. You can get a high loan amount from INR 30 Lakhs to INR 5 crore or more and purchase the home of your choice. Thus, you can aspire to purchase a bigger and better home and live comfortably with your loved ones.
Although the eligibility criteria for home loan may vary from one lender to another, typically, all lenders have few and simple requirements for women. The basic criteria include:· You must be an Indian citizen · You must be aged between 25 – 65 · You must have a regular income source · You must have a good credit score
Longer repayment tenure
When you apply for any type of loan, choosing the right repayment tenure is vital as it has a direct impact on EMI and affordability. The longer the repayment duration, the lower the EMI and vice-versa. In the case of housing loans for women, many lenders give you the flexibility to choose the loan tenure as per your financial condition and repayment capacity.
If you are a salaried employee and cannot afford to pay a higher EMI, then you can opt for a loan with the highest tenure, i.e., up to 30 years. This gives you sufficient time to repay the amount while taking care of your other financial commitments.
Also, most lenders in India do not levy any additional charges for making part prepayment or foreclosing the loan before the actual tenure. Thus, as a woman borrower, you can enjoy valuable benefits while repaying the loan.
Lower stamp duty
This is another significant home loan benefit for women. When you buy a home, you must pay a stamp duty, a statutory expense that you must bear from your pocket. Although the stamp duty rate varies from state to state, it usually ranges between 1% to 3% of the property’s value. This can significantly add to the overall property cost.
But to encourage women to purchase homes, many states offer a reduction of 1% on the stamp duty. This helps you save a considerable amount. If you purchase a home worth Rs. 1 crore, then you can save up to Rs. 1-2 Lakhs on the stamp duty.
Additional tax benefits
Apart from helping you accomplish your dream of being a homeowner, applying for a home loan lets you enjoy tax benefits and reduce your annual tax liability. The principal amount you repay is eligible for tax benefit up to Rs. 1.5 Lakh in a financial year under Section 80C. Similarly, the principal amount you repay is deductible up to Rs. 2 Lakhs in a year under Section 24 of the IT Act.
As a woman, if you are a co-borrower or co-applicant with your spouse, both of you can individually enjoy tax benefits.
Apart from all these benefits, many lenders in India entice women borrowers by offering additional benefits like vouchers, special offers on credit cards, free holiday, small gifts, etc. These gifts make the already lucrative home loan offer even better for women borrowers.
Thus, as a woman home loan borrower, you can avail many benefits. If you have been dreaming of buying a home for a long time, then now is the right time to apply for a home loan and make your dream come true. Make sure that you do your research on the different home loan offers from various lenders and choose the right one accordingly.