Benefits to Woman Home Loan borrower in India
Today, women are making revolutionary career choices to be monetarily independent. Whether it is fashion, sports, beauty industry, or any other field, women are also getting ahead. They are also taking equal parts to accomplish big milestones of their life, like buying a house. Over the years, the number of women applying for house loans has increased remarkably.
Buying a home is undoubtedly a big financial decision. With real estate prices increasing rapidly, it becomes hard for anyone to buy a home without any loan. So, Home Loan becomes a necessity. To encourage women borrowers, the government has announced several special benefits like a lower interest rate, extended repayment tenure, simple eligibility, and more. Read further to know more.
Lower rate of interest
In India, people believe that women are more reliable borrowers as compared to men and to encourage them to own their own properties, lenders offer loans at a special interest rate for women. The interest rate on home loans for women is a few points lower than the existing market rate. Also, the subsidy on interest rate maybe 0.1% lower which has a significant impact on the EMIs and consequently makes the repayment easier in the long run.
Easy eligibility criteria
Another significant advantage for women applicants is that they can apply for a higher amount of loan; from 30 Lakhs INR to 3.5 crore INR along with easy qualifying criteria. This makes it easier for women to borrow. Most lenders have the following requirements for women:
• She should be an Indian citizen
• Applicant should be between 23 and 58 years
• Have work experience of 3 years
Extended Tenure
Women home loan applicants also get longer repayment tenure up to 25 years. Extended Tenure gives a chance to reduce the financial burden by reducing monthly EMI. Also, women can prepay the loan without having to incur any prepayment penalty.
Reduced stamp duty
For the homes registered in the name of the women, the stamp duty is about 1% to 2% less than what applies to men, a considerable saving considering the total cost of the property purchase. For this, a woman can save around Rs 50k - Rs 1lakh on a property worth Rs 50 lakh.
Tax deduction
Women home loan applicants are eligible to claim tax benefit of up to 1.5 lakh on the repayment of the principal amount and 2 lakhs interest repayment.
The benefit of the PMAY Scheme
With the introduction of the Pradhan Mantri Awas Yojana, an Indian government initiative to provide homes for the low-income group (LIG) and economically weaker section (EWS) groups, there has been a significant rise in the number of women home loan borrowers. The PMAY scheme makes it mandatory for a woman to be the co-owner of the property. The scheme also provides benefits on House Loan to widows and single women who belong to EWS and LIG categories.
Women while aiming to purchase a house can take advantage of the above home loan benefits to make their dream come true.
Keep reading Pinnacle Properties for more updates on home loans and feel free to reach out to Pinnacle Properties at 9354319356 to speak to one of our representatives.
Written by Neha Khanna