5 Ways Women Can Benefit from Taking Home Loans
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.
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.
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.
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