What are the benefits women enjoy while taking a Home Loan?

Introduction

Owning a home in India is much more than having a place to live. Even so, more important for women as home ownership gives them an identity and security. There are multiple home loan schemes available today which are specially designed for women. Hence, home loans are becoming increasingly accessible and attractive to women borrowers' due special schemes, tax benefits, and tailored advantages. Let's explore the benefits and considerations for women when considering a home loan in India.

 

Home Loan Benefits for Women  

• Interest Rates: Most banking and non-banking financial institutions lend women borrowers at concessional rates on their home loans when compared to men borrowers. Home loan process is also simplified for women.
• Special Schemes and Discounts: Women have benefits of special schemes and discounts, such as reduced processing fees and other charges. This reduces financial burden on women while taking a loan.
• Tax Benefits: The government of India provides tax relaxation to women borrowers. A Deduction on Home Loan Interest. Under Section 24(b) of the Income Tax Act, women homeowners can claim deductions on the interest paid on home loans, up to Rs 2 lakh per annum, leading to valuable savings in tax.
• Greater Loan Eligibility: Housing Finance companies or commercial Banks may offer higher loan amounts to women applicants, considering factors like stable income and lower default rates. 
• Flexible Repayment Options: Women borrowers often have more access to flexible repayment options, like longer loan tenures or customized EMI structures, to match their financial capabilities and career paths. 

 

Reasons For Women to Avail a Home Loan

Financial Independence: Home ownership, as a widely documented fact, is a matter of not only financial security but also freedom. A woman by owning property could enter the decisions making circle on her own and for herself.

Stability and Security: Home Ownership also gives stability and financial security to women. It also leads to a healthy environment for personal and professional growth for women and their families.

Investment Opportunity: Real estate is a great investment. You can rent it for additional income and capitalize through it in future.

Serves as a Guarantee: A house can be evidence of financial stability if a woman needs to borrow a loan or start a business. It gives people confidence about homeowners ' reliability.

Deduction on Rental Income: If a woman gives property on rent, she can claim deductions on rental income. Women can have interest deductions on interest paid on loans against rental value over and above the standard 30% deduction on rental income. 

Stamp Duty Relaxation: In India, many states in India have a lower stamp duty for women property owners. For example, in Delhi, the normal stamp duty is 5.5%, while for women buyers, it is 3.5%. Similarly, many other states give up to 2% concessions to women on stamp duty.  Lower stamp duty can be a huge relief to buyers, especially middle-class property owners. This difference in stamp duty may seem to be only 1-2% but it can be huge in terms of absolute value.

Improved Negotiation Power: Women become more in command of a negotiating process when related to property selling and buying if they are property owners. They can manage their portfolios without needing input or consent from their husband or other family members. They can get the best and most suitable deals if they are looking to buy, sell or rent their property.

 

Conclusion

The benefits that women drive through home loans extend beyond financial aid. It is symbolic of empowerment, independence, and the mobilization of dreams. Through the use of home loans, women are able to protect their future, improve their finances, and be a benefactor to their family in the process.

Click here and read the inspiring story of Leelavati, who availed financial assistance from India Shelter and became the owner of a restaurant.

 

FAQs 

Q1 What is the eligibility criteria of women to avail home loan?

A1 The eligibility criteria may vary from lender to lender. Generally, it includes age, income, job stability, and creditworthiness.

Q2 Can both husband and wife claim housing loan benefits?

 A2 Yes, both spouses are eligible to claim tax benefits on a jointly owned property and can avail the advantages on a home loan.

Q3 Who can be a co-applicant for such loans?

A3 Co-applicant can be spouse, parent or child, provided that surname varies and he / she should have adequate income to support the repayment of loans.

Q4 What are the processing fees applicable on such loans?

A4 Processing fees will vary from lender to lender. Though in most of the cases women are entitled to get a low or nil processing fee

Q5 Is the EMI lower for a woman applicant?

A5 Though the rate of interest might be lower in the case of females, the EMI amount varies according to the amount of loan, tenure, and the interest rate.

Q6 Is there any benefit for females in a home loan?

A6 Yes, there can be certain benefits enjoyed by women borrowers, like lower interest rates, special schemes, discounts, and tax benefits.

Q7 How much home loan can a woman avail?

A7 The amount lent is usually determined by the reliability or incomes, credit scores, property value, and the policies of the lender.