When it comes to women in India, owning a home is one of the most important things and there are additional advantages that come with it which make the process easier and cheaper. It is common for financial institutions and government policies to encourage women to own property in order to improve on various incentives that will facilitate this. Let’s find out why financial institutions offer lower interest rates on housing loan for women and what their givebacks are all about.
This article mainly talks about why a woman should consider taking out a house loan. Practically women in India are beginning to become self-dependent economically hence owning their own houses becomes essential for safeguarding tomorrow. Consequently recognizing such a scenario banks as well as housing finance companies have come up with terms that favor the female gender hence enabling them to save much more than they might have spent.
Here’s why women should consider Housing Loans:
#1. Lower rates of interest:
Usually, interest charged by lenders on housing loan for women is minimal compared to their male customers who take credit from the same institution offering them despite it often appearing as 0.05% to 0.1% below their standard rates but over a loan repayment period such differences translate into large amounts saved.
#2. Less stamp duty charges:
- For instance, in Delhi, women would pay 4% stamp duty while their male counterparts 6% of the value of the property.
- In Rajasthan, men are charged 6% while women pay only 5% as stamp duty.
- In the end, this implies that you immediately save money before even finishing the registration of the house.
#3. Tax benefits:
Women can claim tax deductions under Section 80C (up to ₹1.5 lakh annually) for principal repayment and Section 24(b) (up to ₹2 lakh annually) for interest paid.
Key incentives for women borrowers
The government and financial institutions have created some extra benefits to lure female investors into the real estate business.
- Pradhan Mantri Awas Yojana (PMAY):
Female ownership/co-ownership is mandatory for beneficiaries in the EWS and LIG categories. Eligible urban females can get an interest subsidy of up to ₹2.67 lakh while taking home loans.
- Priority processing:
When it comes to giving out housing loan for women, there is special treatment from lenders who would like their services ranked top over those for other potential customers; the reason being quicker approvals and disbursement.
- Flexible loan terms:
In other words, there are cases where financial institutions furnish their clients with either tailored EMI plans or longer tenures.
All about the balance transfer home loan process
In instances where high rates weigh heavily on existing homeowners, they might think about a balance transfer home loan process. For instance, if you would like to do away with your current home loan and go for it to another lender offering cheaper rates than your previous one:
The balance transfer process is as simple as follows:
- First of all, compare banks on which one is able to provide better terms and conditions;
- Secondly, scan through your loan statement along with personal identification documents then assess the same for eligibility purposes before the completion of the necessary paperwork to get approved for a new loan;
- The next step involves the new bank paying off the old bank after meeting all its requirements. Thus, one will be required to pay the new lender within a different timeframe instead of starting all over again because no payments were made at that particular moment.
Benefits in numbers
To understand how housing loan for women can save them some real money, go through the incentives listed below:
- Interest rate savings: On a ₹50 lakh loan over 20 years, a 0.1% lower rate can save ₹1 lakh in interest.
- Stamp duty: A 2% reduction on ₹50 lakh property saves ₹1 lakh upfront.
- Tax benefits: Combined deductions of ₹3.5 lakh annually can reduce taxable income significantly, but the actual benefit depends on loan repayments and individual eligibility.
Tips for women seeking housing loans
The following are practical recommendations women can use to get the most from these provisions:
- Check whether you are eligible — Make inquiries concerning qualification criteria pertaining to special rates or government schemes.
- Shop around — Conduct research on different banks and HFCs for lucrative offers.
- Go for joint ownership — Couples can hold property together, as this attracts maximum taxation relief
- Live within your means — To avoid defaulting on payments choose EMI levels based on your financial ability.
The Bottom Line
Housing loans for women represent, in a real sense, not just financial assistance but a step towards empowerment. As more and more women entrepreneurs are emerging in India, there is a need for them to own possessions, avail housing loans at lower interest rates and benefit from lower stamp duties and other allowances.
The balance transfer home loan process will help you cut costs and improve repayment terms if you’re already experiencing expensive loans due to high interest rates.
Make the leap today. This is the best time for an Indian woman to buy her dream house since current economic realities favour them more than ever.
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