Women today are holding positions of power in their respective fields and are exploring newer, non-traditional avenues for investment. As a result, they can make better-informed investment decisions and grow their wealth. And buying a house has always been a good investment in India. Moreover, a few benefits, such as a home loan for women can go a long way in encouraging women homebuyers to invest more in real estate.
Since purchasing a home is one of the major decisions taken in any family, a home loan for women is a means through which women can exercise their autonomy in decision-making. Additionally, with the help of a home loan, a woman can avoid dipping into her life savings which can be utilized for other important expenses. However, investment is not the only purpose that a house serves; women can also choose to live in the home they purchase so that they always have a place to call their own.
And so, let’s look into how women can best utilize these home loans for their benefit.
Lower Interest Rates
Of late, lower home loan interest rates offered by banks and lenders have made it simple for homebuyers to purchase a home. Many lenders have made it even more convenient for women homebuyers by offering home loan interest rates that are lower than the market rate. Even though the lower interest rates of home loans for women may not be very significant, it does make a considerable impact on the EMIs, and hence, women can repay their home loans without any stress!
Extended Repayment Tenure
Women often deal with multiple financial pressures, whether they are managing a household or working at a professional job, and lots of women do both and do it well. To enable the flexible repayment of the EMI amount, women homebuyers have the benefit of choosing longer home loan repayment tenures. This eases the pressure on their other financial commitments while they pay off their EMIs. If you are a woman homebuyer who is planning to get a loan, you can select a tenure of 1 to 30 years to repay the loan with the lower home loan rates.
Simple Eligibility Criteria
The eligibility criteria for women are much more relaxed when it comes to taking a home loan. Women can avail of a higher home loan amount and choose a loan amount between ₹2 lakhs to as high as up to ₹10 crores, enabling them to buy a house that suits their budget. The eligibility criterion is/ quite simple – as a woman homebuyer wanting to get a home loan, you have to be between 18-70 years of age and you can either be a salaried or self-employed individual.
Stamp Duty & Income Tax Benefits
When you buy a new home, the stamp duty charges in the country can be anywhere between 5-7%, depending on the state you live in. But there is another benefit on home loans for women; most state governments lower the stamp duty rates by 1-2%. A reduction in stamp duty can considerably help lower the total cost of the home!
Along with this concession, you can also claim up to ₹1.5 lakhs on the principal amount under Section 80EEA and up to ₹2 lakhs on the interest repayment for your home under Section 24(b) of the Income Tax Act, 1961. For instance, the stamp duty rates for women homebuyers is 4% and 5% in Mumbai and Thane, respectively as opposed to the 5% and 6% standard stamp duty rates.
Since buying a home can be a huge expense in itself, these home loan benefits can help encourage women to invest more in real estate. After all, owning a home is surely a huge leap towards financial independence!
With so many concessions on home loans for women, one can easily make the most of their home loans and own a beautiful house for themselves and their families.
This article is based on the information publicly available for general use. We do not claim any responsibility regarding the genuineness of the same. The information provided herein does not, and is not intended to, constitute legal advice; instead, it is for general informational purposes only. We expressly disclaim any liability, which may arise due to any decision taken by any person/s basis the article hereof. Readers should obtain separate advice with respect to any particular information provided herein.