Home Loan Benefits For Women In India
Buying a home of one’s own is a dream every person has. But today, that dream is not limited to just men. With societal changes, women are becoming homeowners and building a home of their own. To encourage more women to go on the same path, banks and financial institutions have many benefits in place. These home loan benefits help women avail of loans without much hassle. Thus, more and more women are starting to have houses credited to their name. If you are a woman looking to buy a house, these are the home loan benefits you should know about.
1. Lower interest rates for women:
One of the biggest home loan benefits for ladies is the lower interest rates. People who have ever purchased anything on a loan will know that even a 0.01% difference in interest rates amounts to a lot of savings. In order to incentivize more women to buy their own houses, banks and financial institutions offer concessions on the rate of interest on the home loan. The concession might vary from 0.05% to 0.1%. Although this number doesn’t look as impressive, it can make a huge difference. Let us understand this with a simple example. Typically, home loans last for long periods of time. It might take even 15 to 20 years, in most cases. So let us assume that a borrower takes a home loan of Rs. 50 lakhs for 20 years. The interest rate applicable for male borrowers is 8.65%. While the interest rate offered to female borrowers is 8.6%. Therefore, the interest outflow for the male borrower is Rs. 55,28,083 and the interest outflow for the female borrower is Rs. 54,89,953. Evidently, the savings from the woman borrower’s interest outflow amounts to Rs. 38,130.
2. Women enjoy tax benefits, even as co-borrowers:
All women availing a home loan are eligible for tax deductions of up to Rs. 3.5 lakh. The same tax benefits can also be availed if you apply for the loan with your spouse. If a couple applies for a home loan jointly, they can still claim the tax deductions. The maximum tax deduction allowed on principal amount is Rs. 1.5 lakh. While the maximum tax deduction allowed on the home loan repayments is Rs. 2 lakh.
3. Lower stamp duty charges for women:
Stamp duty adds a significant amount to the cost of the house. To make sure that more women own property, different states lowered stamp duty charges by 1 to 2%. This can result in a woman saving up to Rs. 1.6 lakh on a property worth Rs. 80 lakh.
4. Pradhan Mantri Awas Yojana (PMAY) scheme benefits:
The Pradhan Mantri Awas Yojana (PMAY) is a government initiative. The scheme is designed to help women own more houses. It helps women to get access to home loans. Widows and single working women are given preference. You can visit the official website of Piramal Finance to apply for the scheme with a simple click.
5. Large amounts of loan with simple eligibility criteria:
To attract women borrowers, lenders have relaxed their eligibility criteria. Some financial institutions offer home loans to people with a credit score of 650 or less. These kinds of home loan benefits make it easy for women to buy their own houses. If you are a woman looking for the best home loan options, Piramal Finance website has a lot to offer.
6. Higher chances of loan approval:
Statistics have shown women to be better borrowers than men. There are less defaulters among women and they also have higher credit scores on average. Therefore, financial organizations tend to approve loans of women more easily.
7. Flexible tenures:
Among the best home loan benefits for women are the flexible repayment tenures. Women applying for home loans can choose repayment tenures lasting up to even 25 to 30 years. Such convenience gives women the confidence to build a home of their dreams.
8. Other benefits:
Lenders often have exciting offers and gifts for women availing home loans. These include vouchers, gift cards, gold coins and free holidays, among others. These additional sweet gestures are truly worthy of mention.