India is growing, and so are women's empowerment and employment rates. Women strive hard to build a dream house of their own and to support them; several banks and also non-banking financial institutions(NBFCs) provide extra benefits to them along with their home loan offerings. Those offerings make it easy for women to afford a house by applying for home loans.
There are five significant benefits for women if they apply for home loans in India that are discussed below:
1- Lower Interest Rates:
The interest rates on home loans play a crucial role in the process of loan repayment. Higher interest rates make repayment more challenging for individuals to pay off. However, women often get the advantage of lower interest rates on home loans, which are provided by several financial institutions. This is because of their perception of credibility and higher trustworthiness in society, which helps them repay the loan with an interest rate concession of about 0.5-1% offered by many financial institutions, which leads to a lower EMI.
2- Tax Advantages:
If a woman is married, she can join her husband as a co-applicant while applying for a home loan. This not only strengthens their application but also allows both of them to individually claim tax deductions under Section 80C and Section 24 of the Income Tax Act of 1961.
3- PMAY Benefits:
The Pradhan Mantri Awas Yojana (PMAY) is a government initiative that offers a credit-linked subsidy scheme (CLSS) to make housing more affordable. For female applicants, there is a special advantage under this scheme. To be eligible for the PMAY scheme, the property purchased must be registered in the name of at least one woman in the family. Moreover, if a woman is applying for a home loan under CLSS, she can benefit through interest concessions as well.
4- Reduced Stamp Duty:
When you buy a home and go through the official registration process, the state government charges a legal tax, which is known as stamp duty. These stamp duty charges can be a significant cost during property purchase. However, for women, the stamp duty is typically lower by about 1% to 2%. This means that women can save some money by availing of these tax benefits when they are buying a property.
5- Eligibility criteria for home loans for women:
Banks and housing finance companies (HFCs) review the home loan applications of women, along with other applicants, using similar criteria. They consider factors such as credit scores, age, income, location, and property features when deciding whether to approve the loan or not.
6- Processing fees for women to avail of home loans:
When it comes to processing fees and other charges for a home loan, lenders such as financial institutions don't get biased based on gender. So, the fees for women who are applying for a home loan are the same as those for other applicants. However, it's worth noting that some banks and housing finance companies may offer discounts or completely waive the processing fees, especially during festive seasons or special campaign periods.
