With more and more women becoming
financially independent, an increasing number of women understand the need to own
a property and how this aspect plays an essential role in financial planning. Nowadays,
many women are applying for home loans for fulfilling their dream of owning a
house. Banks and other financial institutes rely on women customers for
expanding their home loan portfolio. And for luring them, the lenders are
offering customised schemes, lower processing fees, and other such discounts.
The other factors contributing to an increase
in women housing
loan borrowers include lower interest rates, tax benefits, and low stamp
duty charges. Here is a detailed guide on how women borrowers benefit from either
banks or non-banking financial companies –
Saves on interest rates
Research states that women borrowers have a
better track record of repaying the loans. Precisely why lenders encourage
women applicants to invest in properties and purchase a new abode. For taking
the deal ahead, they offer interest rates as low as 0.05 per cent to 1 per
cent. Such low-interest rates play a massive role in reducing the overall
monthly interest liability. Also, as the saying goes, ‘the money saved is the
money made.’ You can use the saved funds for other financial investments.
Low stamp duty charges
Stamp duty is one such tax that the
Government compulsorily imposes on the property during the sale or transfer. The
rates vary from one state to another. The factors upon which stamp duty relies
on are property status, property location, property type, and property usage. The
stamp duty charges vary from lender to lender. Considering it is a part of the
property cost, even the slightest concession can make a huge difference.
Most of the state Governments offer a discount
on the stamp duty fees, notably if the property is registered under a woman’s
name. The difference in the charges is typically 1 per cent to 2 per cent. This
way you save a substantial amount while purchasing the house.
Tax benefits
All tax-paying women borrowers are eligible
to claim home loan
tax exemptions up to INR 3.5 lakh. Under section 80C of the Act, borrowers can
typically claim up to INR 1.5 lakh on home loan repayment. And according to
section 24(b) of the Income Tax Act, borrowers can claim up to INR 2 lakh on
the interest rates. Additionally, there are other deductions that women can
claim.
PMAY benefits
Women can also avail of the Government
social security scheme – Pradhan Mantri Awas Yojana. Under this scheme, they can
claim interest subsidy through Credit-Linked Subsidy Scheme. Through the PMAY
scheme, the Government aims to provide affordable housing to the urban poor by
2022 by rolling out various initiatives. Under CLSS, the Government offers a
subsidy worth INR 2.67 lakh to the eligible consumers on the housing loan
interest rates. The subsidy amount is provided upfront on the outstanding amount,
thus lowering the interest amount. The benefits for women include –
The family should have at least one woman
registered as the owner of the new house, irrespective of whether she is
planning to purchase the same
Senior citizens, inclusive of older women, would
get ground floor accommodation for convenience purpose
