Over the last century, women have emerged on the front lines in almost every field of life. Gone are the days when financial management was only accessible to men. Women have always been equally capable of financial management, and now they have the opportunities. Working women have now sanctioned a house loan to purchase properties of their choice.
Where you choose to live will say a lot about you. Several home loan schemes are available for women in the banking sector.
Given below are some of the major benefits that women looking to purchase a house using home loans can enjoy.
- Availability Of Long Repayment Tenures
To encourage women to purchase homes, financial institutions, and banks allow special facilities for female borrowers. Women have the option to repay their home loans over up to 30 years. Such relaxation allows them the comfort of easy EMIs that do not become a financial burden. Hence, the extended repayment tenures help them plan their finances better.
- Simpler Eligibility Criteria
It is relatively easy for women borrowers to acquire home loans than their male counterparts. Lenders, to attract women borrowers, have simple eligibility criteria for women. To get a home loan, a female has to be a citizen of India, between 23-62 years of age, with a basic work experience of 3 years. Having fulfilled these basic criteria, a woman can have her home loan sanctioned without hassle.
- PMAY Is A Big Plus
The government has been very supportive of women purchasing houses. Several government schemes provide some financial relief for women taking home loans. Knowledge of these schemes, such as the PMAY (Pradhan Mantri Awas Yojna) scheme, will help the applicant get lower interest rates, lower stamp duty, etc.
Apart from these benefits, various state governments also have separate schemes which provide subsidies encouraging women to own properties. Governments keep introducing and removing their schemes from time to time. Being alert and informed will help you get the most out of your home loan.
- Lower Interest Rates
Banks also play a part in the fight for equal recognition for men and women. They encourage women to start businesses and own properties by providing financial relief through various schemes and policies. One such policy adopted by banks is that they charge a lower interest rate for home loans for women. The woman can be the sole borrower or the co-borrower of the loan to be applicable for a lower interest rate. It is the best facility a working woman gets when applying for a home loan.
- Co-borrowing Benefit
The chances of your home loan getting sanctioned increase if you apply with a co-borrower. A working woman is eligible for a home loan with up to three working family members. Because more people are involved, the combined income will be significantly higher, resulting in eligibility for a bigger loan amount. Also, as co-borrowers, each person will be eligible for the tax deductions calculated. Hence, having a co-borrower helps the working woman get more benefits on her home loan.
- Low Stamp Duties
When registering a property to one’s name, stamp duty is applicable. The Government of India offers relaxation of stamp duty for its women purchasers. Women are entitled to a 1% – 2% discount on stamp duty when purchasing a property. Although the percentage may seem insignificant, it makes a noticeable difference when considering the amount of the purchased property. Women borrowers can avail of this benefit when taking out a home loan to buy a new home.
- Tax Benefits
A tax deduction is another perk women borrowers can await when taking a home loan because they reduce purchase costs. Women borrowers are allowed tax deductions when purchasing a home under their name. Such exemptions are available not only on the repayment of the principal amount but also on the added interest. Female borrowers can claim benefits of up to 1.5 lakhs to 2 lakhs. With their spouse as co-applicant of the home loan, a couple can have up to 3 lakhs.
Conclusion
Compared to the previous situation, women are more informed, educated, and capable of financing their real estate purchases in today’s world. Women are better placed financially and have support from the banks. The banks are helping them at every step possible to ensure more and more women have their own homes. So what are you waiting for? Start planning for your own home today.
