loader2
Partner With Us

5 Ways Women Can Benefit from Taking Home Loans

Introduction

Many women are recognizing the need to save and invest with a larger purpose of achieving financial wellness. In this regard, homeownership is one of the means to that end. As a critical tool to building wealth, owning a home can be crucial. Hence, if you intend to purchase a home — with or without your partner— let's look at five home loan benefits for women.

1. Lower Interest Rates

Several home loan lenders offer low-interest rates for women home loan borrowers. A lower rate of interest can positively impact your monthly payments or Equated Monthly Installments [EMIs] over the loan tenure. Since a loan can extend anywhere between 15 to 25 years, a lower interest rate can ensure better affordability, significant savings and stress-free, comfortable repayments.

Additional Read: A Wide Bouquet Of Loan Options To Choose From

2. Reduced Stamp Duty Charges

As part of a home loan cost, stamp duty is a mandatory fee. To register your purchased property in government records, you would need to pay this charge. Stamp duty charges differ from one state to another in India. For instance, if you are a woman home loan borrower, you need to give only 4% of the property value as stamp duty in New Delhi, as against 6% for men. Some states such as Jammu and Kashmir have waived off stamp duty for women entirely. In Maharashtra, women homebuyers can benefit from a one percentage point concession, which means you will need to pay only 2% of the property value as stamp duty when registering the property. Having a lowered stamp duty fee can make a huge difference when purchasing a home.

3. Extended Loan Tenures

Women homebuyers can repay their home loan at ease at longer than regular loan durations. Some lenders offer tenure of up to 25 years, allowing reduced pressure on your finances through lower EMIs. A longer term can help you to take care of other commitments while repaying your home loan. Several lenders also levy no charge when making part repayments or foreclosing the home loan. Hence, you get the opportunity of repaying your loans early without worrying about foreclosure charges. 

4. Pradhan Mantri Awas Yojana (PMAY) Subsidies

Under this scheme, it is mandatory for women to be co-owner when purchasing the home. Under this scheme, preference is extended to single women, widows, Economically Weaker Section [EWS] and Low-Income Group [LIG]. It offers women homebuyers an interest subsidy of up to Rs 2.67 lakhs under the scheme. If you're looking to take a home loan through the PMAY's scheme's Credit Linked Subsidy Scheme [CLSS], you can further benefit from interest rate deductions. For home loans up to Rs 6 lakhs, women homebuyers from the EWS section and LIG segment can obtain a 6.5% interest subsidy.

5. Tax Benefits and Advantages

As a woman homebuyer, you can also benefit from tax deductions and claim tax benefits up to Rs 1.5 lakhs when repaying the principal amount and a maximum tax deduction benefit of Rs 2 lakhs on repaying the interest. If you are a co-owner with your husband, you will be entitled to assert your tax deductions on your earnings under Section 80C, Section 24, and Sections 80EE and 80EEA of the Income Tax Act on buying your home.

Additional Read: Know all about Section 80C 

In addition, you can also benefit from a better chance of home loan approval as an increasing number of lenders are keen to lend home loans for women. Historical evidence shows that women tend to save better, avoid unnecessary debts, have better household financial management and lower default rates when borrowing. All these factors help home loan providers offer added benefits and encourage women to purchase a home. With increased flexibility, enhanced services and more, you can be empowered to buy a house and move towards financial independence today.

Additional Read: Get The Right Home Loan Option To Make Your Dreams Come True

Conclusion

If you are a first-time homebuyer, you may have a steep learning curve ahead of you. It is essential to anticipate the responsibilities, possible pitfalls and issues related to homeownership. Take advantage of educational support and home loan benefits for women to get a good idea of what you need to expect when purchasing a home. Taking the advice of a financial advisor can be hugely instrumental in understanding your cash flows and planning your home loan.

Disclaimer : ICICI Securities Ltd.( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Centre, H. T. Parekh Marg, Churchgate, Mumbai - 400020, India, Tel No : 022 - 2288 2460, 022 - 2288 2470.  Please note, loans related services are not Exchange traded products and I-Sec is acting as a distributor to solicit these products. All disputes with respect to the distribution activity, would not have access to Exchange investor redressal forum or Arbitration mechanism. The contents herein above shall not be considered as an invitation or persuasion to trade or invest.  I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon.

Most Popular

f
  • 15 Sep 2021
  • ICICI Securities

5 Most Popular Reasons for Switching Bank

In the beginning, you would hear from them quite often. But of late, you're noticing more and more signs that it's no longer working. We are referring to your relationship with your bank. Click here to read how to recognize the red flags in your banking relationship and why it might be a good time to end the bond.

  • 15 Sep 2021
  • ICICI Securities

How Intraday Trading Works? Detailed Ideas

Intraday trading in India has been gaining momentum of late. It is no longer the option of only trade pundits.

  • 15 Sep 2021
  • ICICI Securities

What is Intraday trading? A Beginner's Guide

With the advancement of technology and increased knowledge about the stock market, trading is no more a domain dominated by stock pundits.

  • 05 Sep 2021
  • ICICI Securities

Is it Good To Invest in Cyclical Stocks?

Akin to how the pedals of a cycle go up and down as it moves forward, the share price of certain stocks goes up and down in accordance with the economic cycles a country goes through. 

  • 05 Sep 2021
  • ICICI Securities

A primer on Fixed Maturity Plans

If you happen to have some surplus funds which you don’t need for a specific period, but you don’t want to take the risk of investing this money in the stock market, you can very well put this money in a Fixed Maturity Plan or FMP. 

  • 05 Sep 2021
  • ICICI Securities

How to Choose the Best Equity Mutual Fund

You must have heard a lot about investing in mutual funds. But before jumping on this trend you need to assess a mutual fund scheme according to your goals, investment horizon, risk profile, liquidity needs and many other factors to find a suitable match. 

  • 05 Sep 2021
  • ICICI Securities

A Beginner’s Guide to Monetary Policy Tools

The Reserve Bank of India has the incredibly crucial responsibility to formulate the monetary policy. The main objective of monetary policy is to control inflation and provide a conducive environment for the country's economic growth. 

  • 05 Sep 2021
  • ICICI Securities

Buying Penny Stocks and its Risks

There is a specific category of stocks whose prices are very low and they seem to yield exponential returns. But do you know that investment in such stocks could be risky? 

  • 05 Sep 2021
  • ICICI Securities

How to Choose the Best Debt Mutual Fund?

Debt mutual funds primarily invest in fixed income securities, which include money market instruments like commercial papers, corporate bonds, treasury bills, government bonds and other instruments.

  • 05 Sep 2021
  • ICICI Securities

Tax Saving Using Section 80D

“Make your life safe and get insurance immediately”. This statement was never more relevant than the times when the pandemic threatens to wipe off the population. 

Open an Account

Sign Up for Free

+91

Please use the mobile no registered with Aadhaar.

OTP sent to +91 1234567890

Didn’t received OTP? Resend

00:30

iciciDirect-money-logo
iciciDirectMoney-App

Get Research Backed Recommendations.

Download The app now

or Scan below QR Code To download app

QRcode