It is a known fact that availing a home loan is one of the best ways to get a tax deduction. But, for women borrowers, there are many other benefits. Read on to know more.
Several financial research reports suggest that over the past few years, the number of women applying for home loans has increased manifold. The financial organisations in India have introduced several home loan schemes that are specially crafted for women borrowers with special benefits.
What are the benefits of loan for women borrowers in India?
Some of the common benefits available for women home loan applicants include lower interest on housing loan and simple eligibility criteria.
Interest rate is affordable for all women
To encourage women to be homeowners, the lenders in India offer loans at a special interest rate. The interest rate offered to women applicants is typically a few points lower than the existing market rate that is applicable to other borrowers. The difference in the interest rate can help you save a significant amount in the long run and make the repayment easy and stress-free. You can avail a home loan up to Rs. 30 lakhs at an interest rate ranging from 8.90% to 9.40%.
Avail higher amount with simple eligibility
It is another significant benefit for women home loan borrowers in India. All financial institutions have strict eligibility criteria for a home loan applicant. The lender has the right to reject your loan if the applicant does not meet any of the requirement, t. But for women applicants, the lending institutions have simple eligibility, which makes it easier for women to get the necessary funds for a home purchase.
Longer repayment tenure
The loan term is one of the most important aspects of a home loan. It is the duration of the loan repayment. The longer the duration, the lower is the EMI, which makes it easier to repay. Generally, for women borrowers, the lenders offer a loan for a duration of up to 25 years or more. It allows you to take care of other financial commitments while paying off your home loan.
Lower stamp duty
The stamp duty is an integral part of buying a home as it is the duty levied by the government. When you apply for a home loan, you must consider the stamp duty too and include it in your loan amount. Most state governments charge 1% to 2% lower stamp duty (the duty is charged on the total value of the property) if the home is registered in the name of a woman. While the percentage may seem nominal, you might save a substantial amount if you consider the total cost of the property.
Benefit from schemes like PMAY
The Pradhan Mantri Awas Yojana, an affordable housing government scheme, makes woman co-ownership mandatory. Under the scheme, the home loan applicants can avail a subsidy on the interest up to 2.67 lakh Rupees. There is a 6% increase in the number of women applying for a loan in India due to PMAY.
With the various benefits available for women, you can take your first step towards being financially independent. You can use an online home loan calculator to check your eligibility and get started with your home loan application. Before you sign the loan documents, ensure that you understand the terms and conditions to avoid any legal hassles later.