Home Loan Benefits for Ladies in India

While the number of women borrowers rose by 17.8%  in 2023, including a slight increase in home loan borrowing, only 13%  of Indian women (aged 15 to 49) own a house independently.

Recognising the growing contribution of women to the economy, both the government and financial institutions now offer specialised schemes and exclusive home loan benefits for ladies. These initiatives are designed to encourage more women to secure homes of their own.

This article presents 5 home loan benefits for women in India that you can take advantage of when applying for a loan.

5 Home Loan Benefits for Women in India

1. Reduced Rates of Interest

Among the key housing loan benefits for ladies is an interest rate reduction of around 0.05% to 0.10%* compared to standard market rates. This is because lenders often perceive women as more reliable borrowers, with lower chances of default.

The subsidised rates help increase financial inclusion and independence for women borrowers. Additionally, they encourage joint property ownership in families, making homeownership more affordable for women.

2. Relaxed Eligibility Criteria and Higher Loan Amounts

Financial institutions often offer exclusive home loan benefits for ladies, such as higher loan-to-value (LTV) ratios, which can go up to 90% of the property’s value depending on the lender’s policy. This can allow access to higher loan amounts. Many lenders also have more relaxed eligibility criteria for women, encouraging them to overcome traditional barriers and buy assets like homes in their own names.

Consider a working woman in her late 20s who wants to purchase her first home. With relaxed eligibility criteria and the potential to secure a higher loan amount, she can receive the financial boost needed to achieve her dream of independent homeownership.

3. Benefit From Government Schemes Like PMAY

The Pradhan Mantri Awas Yojana – Urban (PMAY-U), launched in 2015, supports low-income families in securing homes at subsidised rates. For women, the scheme mandates that at least one woman be a co-owner of the property, amplifying the home loan benefits for ladies.

Women applicants in the Economically Weaker Section (EWS) and Low-Income Group (LIG) categories can benefit from the Beneficiary-Led Construction (BLC) and Affordable Housing in Partnership (AHP) components. These components often prioritise widows and single women , providing essential support for securing affordable housing​.

4. Tax Benefits for Women

The home loan benefits for ladies extend to several tax advantages which further encourage women to become homeowners. These include:

• A deduction of up to INR 2 lakhs on interest paid under Section 24(b).
• A deduction of up to INR 1.5 lakh on principal repayment under Section 80C.
• First-time homebuyers can claim an additional deduction of INR 1.5 lakhs on interest under Section 80EEA, provided the property value does not exceed INR 45 lakhs, and the loan was sanctioned between April 1, 2019, and March 31, 2022.

For jointly owned properties, each owner can claim these tax benefits individually, subject to their respective limits.

These tax advantages make home ownership more financially viable and rewarding for women. They help offset the EMI burden, improve cash flow, and contribute to long-term wealth creation. Proper utilisation of these benefits can lead to substantial annual tax savings.

5. Lower Stamp Duty Charges

Lower stamp duty rates in certain states add to the list of home loan benefits for women borrowers. Stamp duty is a tax levied by state governments on property transactions and is essential for legally transferring property. Without paying stamp duty, documents like sale deeds are not admissible in court as evidence. Stamp duty rates vary across states, typically ranging between 5% and 7% of the property’s value.

However, many states offer concessional rates for women, typically 1–2% lower, to promote property ownership among women. This can significantly reduce the upfront cost burden.

For instance, in Maharashtra, women buyers benefit from a 1% concession on stamp duty, paying 5% instead of 6%. On a property worth INR 60 lakh, this translates to savings of INR 60,000. Similarly, in Delhi, women buyers pay a 4% stamp duty on property purchases, compared to 6% for men. 

*Please note that the above benefits and their parameters can vary from lender to lender.

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Conclusion

With benefits such as reduced interest rates, relaxed eligibility criteria, tax advantages, and lower stamp duty charges, home loans offer women a significant financial edge in achieving their dream of homeownership. Additionally, government schemes like PMAY further encourage financial independence and asset ownership.

If you are a woman aspiring to become a homeowner, SMFG Grihashakti stands ready to support your ambitions. You can avail of home loans of up to INR 1 crore*, competitive interest rates starting at just 10%* per annum, and flexible tenures of up to 30 years. An easy-to-meet eligibility criteria and minimal documentation requirements further make the path to homeownership easier. Apply online today or visit your nearest branch to learn more.