Everything you need to know about Women Home loan benefits

Purchasing a house is considered to be a financially secure investment in the long term. Owning a house is no less than an achievement especially when the property rates are always on the higher edge. It gets next to impossible to either save the whole property amount over the years or sacrifice the entire savings at once. A home loan is a solution to all the financial crunches being faced during buying their own house. Multiple banking organizations such as – HDFC, Axis, ICICI, SBI, etc. are providing lucrative house loan schemes to encourage the aspirants in achieving their dreams. One of the topics which are not yet known to most of the home loan applicants is the benefits list of women as borrowers. The government of India has incorporated some benefits to uplift the ladies, so they can come forward and become the house owners. Women have been continuously emerging as successful leaders, entrepreneurs, and successful career aspirants over the decade. In order to support in the financial sector, the following benefits have been granted for women home loan applicants – 

  • Comparatively Low-Interest Rate–In the banking sector, several institutions have lowered down their rate of interest for women loan applicants. More or less, they will be waved off somewhere between 0.5- 1% rate of interest on actual market values. Supposedly, a woman has taken a home loan of amount 20,00,000 INR for 10 years at a lowered rate say 8.0% p.a. When they compare it with market-rate which is 8.7% p.a then the net difference calculated is approximately 90,000 INR on the total payable amount. In the end, it does make a significant difference.  If any woman is about to apply for a home loan, she can ask for a Rate of interest wavier from the bank and maybe it can be availed. Before filling the loan application form, the equated monthly installment can be calculated through a Home loan EMI calculator. It is a free and tool present on various websites which lets people calculate their EMI for any number of times. 
  • Tax Benefits with Women as Co-applicant – Co-applicant can be anybody from the applicant’s immediate family members. Spouses or parents are known to be suitable people with whom the Home loan can be applied. Up to 6 people can be added to the loan application list. Women partners in the loan can come with a lot of benefits. It is said that co-applicants have a higher tendency to get eligible for higher loan amount values given they are working. As a couple, if the two have applied for the loan, they can enjoy fewer tax deductions under section 80C and section 24. Women can also enjoy fewer tax deductions and as a couple, they can benefit up to 3 lacs whereas individuals can benefit till 1.5 lacs only. Although, the exact amount which can be benefitted under tax deduction is solely based on each’s contribution towards the home loan. 
  • More tenure offered–Mostly women are given an edge over men for tenure as well as approval of higher loan amounts. Some banking organizations allow women to take a home loan for 30 years and the amount between 30 lacs to 3 crores. On the other hand, men are eligible to take a loan somewhere between 20- 25 years with less borrow limit. For women, the government has also extended the age to repay the loan which is from 65 to 70 years of age. For any further confusion, a Home loan EMI calculator can be used which will determine the exact EMI against the specified tenure and principal amount. The extensions and leverage to take more loans are motivating women to come forward as house owners. 
  • Pradhan Mantri AwasYojna Women – PMAY or Pradhan Mantri Awas Yojana is a scheme created to provide housing to economically weaker sections as well as middle-class urban people. The government has made it mandatory to make women co-applicant/co-owner while applying for a home loan under this scheme, especially for a weaker and middle section. A subsidy is being provided under the interest rate.  The aspirants can apply for the loan and get a subsidy from 3% to 6.5% based upon the section they are categorized according to their income. Women’s ownership is clearly motivated through the scheme. 
  • Waving off some Stamp duty charges – Stamp duty is a state tax that is imposed by the government on the agreement documents between the seller and buyer. Generally, in urban areas, people are charged around 8% of the total value of the property on the other hand 2% less in rural areas. But, for women in Urban areas, the stamp duty charges are significantly reduced by 2% which makes it 6% of the total property value whereas 4% in rural areas. So, a female home loan applicant can save up to 1.2 lacs INR on the property worth 70,00,000 INR. The total loan value at the end can be calculated through an online home loan EMI calculator

Eligibility criteria for Women as a Home loan Applicant.

Following is the eligibility criteria for women to get the loan – 

  • A woman’s minimum age should be of at least 23 years. 
  • Home loans should comprise between 30 lacs till 3.5 crores. 
  • The tenure cannot exceed 30 years. 
  • The loan needs to be applied till or before the age of 58 years. 

This was everything you need to know about the women’s home loan benefits provided today to motivate them to become house owners. If you are looking like a female applicant, you can surely ask for these benefits to your bank and they will assist you. Under such policies, you will be able to save a lot while applying and paying your monthly installments. To all the female applicants, these policies are a way to emerge as an independent house owner by making use of these beneficial policies. 

News Reporter