Learn about the reasons why women home loan borrowers grab better deal than borrowers such as gov goal of financial inclusion indian women, lower interest rates, loan repayment time concession, etc
Financial inclusion for Indian women has been one of the priorities of the Indian Government for a few decades. There are various types of schemes launched by the Government to uplift women’s financial and social standards. To follow this suit of the Government and to play their part in the nation’s growth, banks, NBFCs, and other financial institutions have also remained in the front line to provide aid to the women of our nation.
This MyLoanCare home loan guide for first time home buyers will discuss the benefits that women can avail of regarding their home loan. The guide will also help you to compare home loan details so you could make a better decision.
Due To Lower Interest Rates Compared To Others
Generally, employed women have a better track record than men. This also makes them more reliable in the eyes of lenders to repay the loan. So lenders always encourage women to buy homes and invest in properties by offering them lower home loan interest rates. These lower interest rates are varied as per different banks, but they usually lie between 0.05% and 1%. This small range of concessions makes a significant impact on the loan repayment over some time. The concession in the interest rates plays a vital role to make the home loan more affordable to women.
Low Stamp Duty Charges
Stamp Duty is a tax amount collected by the state government when anyone purchases or transfers the property. However, the value of this tax depends on various factors, such as value, location, status, and usage of the property, and it always depends on the state government.
But usually, the value of stamp duty depends on the value of the property and lies between 4% and 10%. The financial institutions offer a concession of 1% to 2% lower rate to the women borrowers than men. The prices of properties in India are very high. So, even this small percentage creates a big difference in the overall amount of the property.
Therefore, women need to compare home loan details before applying. The stamp duty is directly proportional to the property’s value, and the more significant will be the difference between the stamp duty payable by men and women.
What are the Benefits of Tax Deductions for Women Borrowers?
Following are the benefits related to taxation for women who wish to buy a home on loan.
- Under section 80 C of the Income Tax Act, women can benefit from up to Rs. 1.5 lakhs in the repayment of the principal amount.
- Also, under section 24 (b), women can claim the benefit of Rs. 2 lakhs on the interest amount paid by them. So in total, women can benefit from up to Rs 3.5 lakhs for the repayment of the loan.
- There is another deduction in the loan repayment for women under section 80 EEA, which gives them the benefit of saving Rs. 1.5 lakhs, but it is only applicable to the loans sanctioned between April 1st 2019 and March 31st 2021.
Women are also eligible to avail of these benefits even if they are applying for the loan jointly with their husbands or any other co-applicant. There are chances of getting more excellent benefits because they can claim the benefit for the principal amount and the interest as well.
Longer Loan Repayment Tenor
Women can also get the benefit of a longer tenure for the repayment of loans. This surely means that they will be paying a part of their monthly income to the lender, but it will also reduce their burden and efficiently manage their monthly finances. Better monthly finances will help them reduce their stress and manage their other commitments that women have to honour.
Women can quickly get a home loan of up to 30 years without any extra charges levied on its repayment. This loan’s longer tenure gives women borrowers a better and convenient loan repayment experience.
Home Loan Benefit for Women under PMAY
The Pradhan Mantri Awas Yojana (PMAY) also has various benefits to women. Under the Credit Linked Subsidy Scheme (CLSS), the Government provides an interest subsidy maximum of up to Rs. 2.67 lakhs, and while offering this subsidy, they prefer women over men. This subsidy is an excellent way for women to get an outstanding principal amount on a home loan and significantly reduce the interest amount.
Bottom line: We hope this MyLoanCare home loan guide for first time home buyers will provide you with enough details about the various home loan benefits specially designed for women. Remember to consider all the benefits before that available to you to take the right amount of loan to build your dream house.
Santosh Kumar is a Professional SEO and Blogger, With the help of this blog he is trying to share top 10 lists, facts, entertainment news from India and all around the world.