- Lower interest rate Most home loan lenders in India believe that women are more reliable borrowers as compared to men and to encourage them own properties, they give offer loans at a special interest rate for women. The interest on home loan for women is a few points lower than the existing market rate. This makes it easier for women to repay the loan. Although the subsidy on interest rate may be 0.1% lower, it has a significant impact on the EMIs and makes the repayment easier in the long run.
- Higher amount and easy eligibility criteria Another significant home loan advantage for women applicants is that they can apply for a higher amount of loan. Typically, banks offer women applicants home loans from 30 Lakhs INR to 3.5 crore INR. This, along with easy qualifying criteria, makes it easier for women to borrow. Most lenders have only the following requirements for women:
- Extended Tenure Apart from the subsidy on the interest rate and easy eligibility, the women home loan applicants also get a longer repayment tenure up to 25 years. This gives the women a chance to reduce their monthly EMI and reduce the financial burden. Also, women can prepay the loan without having to incur any foreclosure changes.
- Tax deduction and lower stamp duty As mandated by most state governments, for the homes registered in the name of the women, the stamp duty is about 1% to 2% lower than what is applicable to men. This is a considerable saving considering the total cost of the property. Women also get the benefit of tax deductions; all women home loan applicants are eligible to claim tax benefit of up to 1.5 lakh INR on the repayment of the principal amount and two lakhs interest repayment.
- Take advantage of government schemes With the introduction of the PMAY – Pradhan Mantri Awas Yojana, an Indian government initiative to provide homes for the LIG (low-income group) and EWS (economically weaker section) groups, there has been a significant rise in the number of women home loan borrowers. The scheme makes it mandatory for a woman to be the co-owner of the property. This besides an interest subsidy up to 2.67 lakh INR.
The applicant should be an Indian citizen
She should between 23 and 58 years
She should have work experience of 3 years
So, all the women aspiring to buy a home, take advantage of the above home loan benefits for ladies and make your dream come true.
Learn more about your Home Loan Eligibility here.
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
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