Women are starting to take their rightful position as equals in Indian society. As women in the country become economically secure, they also take great decisions about life, such as buying a home for their families. This has resulted in home loan lenders introducing special schemes and benefits for women home buyers to own their houses and providing several exclusive home loan benefits for women.
Special Homeowning Benefits for Women
1. Increased Home Loan Eligibility
A women home buyer is by far the most sought-after client. Data analytics from several financial institutions show that the default rate for female applicants is lower. Thus, the odds of a woman being accepted for a home loan are greater.
2. Home Loans Provided At Lower Rate
When we’re looking for a home loan, the most important thing to remember is the interest rate. If a woman is a working woman, she can take advantage of a home loan and even enjoy special home loan advantages for women. Most banks have lower interest rates for women borrowers. For example, the rate of interest on a home loan for working women may be about 8.55 per cent, whereas for men equivalents it is 8.60 per cent. This lower percentage can also be compensated if a woman is a co-applicant.
3. Stamp Duty At A Lower Rate Than Men
Many states in India have set lower stamp duty charges for women owners of property as compared to men. Whereas the exact percentage may vary, more and more states are now adopting this concept to encourage more women owners of land. This is another aspect that contributes to the expense of the land. In order to allow women to own land, various states in India give a reduction in stamp duty from 1% to 2%. Again, this makes for substantial savings.
4. Tax Benefits On Home Loans
Another advantage of buying property in the name of a woman is the tax refunds that women may receive. In the case of self-occupied land, an additional deduction of interest amounting to Rs 1.5 lakh per financial year will be given. Under its Pradhan Mantri Awas Yojana (PMAY), the government has made it compulsory for property purchased under the policy to be registered in the name of at least one woman in the family. In the event that a woman borrows a housing loan under the Credit-linked Subsidy Scheme, they also enjoy interest discounts. Women borrowers from the lower income class as well as the low-income group (LIG) will benefit from interest subsidies of 6.5 per cent on housing loans of up to Rs 6 lakhs to female owners of property. The total tax deduction permitted is Rs 1.5 lakh on the principal amount and Rs. 2 lakh on the recovery of interest. If both the husband and the wife are co-owners of the property and have separate income sources, both of them may claim tax deductions.
5. PMAY Benefits for Women
Under its Pradhan Mantri Awas Yojana (PMAY), the government has made it mandatory for property purchased under the program to be registered in the name of at least one female in the family. In the event that a woman borrows a housing loan under the Credit-linked Subsidy Scheme, they also enjoy interest discounts. Women borrowers from the lower income segment as well as the low-income group (LIG) will benefit from interest subsidies of 6.5 per cent on housing loans of up to Rs. 6L.
If you are on the search for residential projects in Hyderabad, then check out Kohinoor by Aurobindo Realty. Make use of the above-mentioned benefits by registering a property in the name of a woman in the family. It is crucial to understand the subtle details of purchasing property in the name of a woman in order to make the most of this and prevent any financial crisis.