How Women Can Benefit from Taking Home Loans

In today’s modern and rapidly developing world, women are leading the change and are increasingly taking their rightful place as equals in society. They are making their own choices, weighing in on crucial life decisions for their families, and grabbing opportunities. Women these days are also financially savvy, and are making smart investment decisions. The increase in women borrowers in the home loan segment is one such example.

Seeing the rising trend, many lenders and governments are offering home loan benefits for women borrowers. Let’s have a look.

What are the benefits for women in Home Loan?

Working women are generally perceived to be financially responsible and lenders also prefer approving loan applications with women applicants as the risk of default is lower. Lenders nowadays offer home loan benefits for ladies to encourage more women borrowers.

Some of the benefits offered are:

Higher Eligibility Amount: Depending on the lender’s policy, women can get access to higher home loans at preferential terms, which makes it easier to own a house. For instance, some lenders may offer women higher loan amounts (due to preferential LTV ratio) on home loans.

Lower interest rates: Lenders may offer preferential home loan interest rates to women borrowers. It helps them to keep the EMI affordable and save significantly over the tenure of the loan. The concession offered can be anywhere between 0.10- 0.05%.

Lower stamp duty: To encourage home ownership for ladies, many state governments provide rebates of up to 2% on house stamp duty to pay while buying the house property. This results in considerable savings and reduces the cost of home acquisition. For instance, with a 2% rebate on stamp duty, a woman can save up to Rs 1 lakh on a property worth Rs 50 lakh.

Benefits under PMAY scheme: In the government’s flagship housing scheme, Pradhan Mantri Awas Yojana (PMAY), co-ownership of the female head of the family is mandatory. However, please note that this scheme is no longer available from April 01, 2022.

Higher-income tax benefits: As a co-applicant, a woman can also take advantage of the income tax benefits on home loans offered under different sections of the Income Tax Act. A couple, both husband and wife can enjoy a maximum tax deduction of up to Rs 7 lakh annually, each Rs 3.5 lakh on their income.

Why Should Women Take a Home Loan?

There are no reasons why women shouldn’t take a home loan. However, over the years, women are preferred by lenders in any loan application.

The following are the reasons, why women should take a home loan:

Sense of empowerment: It gives a sense of empowerment and belief in your capabilities. It sets precedence in your family, and society, and helps you to raise a strong family.

Favored applicants: Over the years of analysis of lending data, it is proved that the risk of loan default is less for women borrowers compared to men. And, due to this factor, the chances of home loan approval are higher.

Customized home loan scheme: Lenders are coming up with customized home loan schemes for women borrowers with preferential terms such as longer repayment tenure, easy terms and conditions, and lower interest, simplifying the home buying experience.

Right time to buy: Explore available government schemes that offer interest subsidies to first time women home buyers, attractive housing prices, and regulatory transparency making it the right time for women to buy house property in India.

Advantages of taking Home Loan for Women

Buying a home is a very big financial decision and a huge financial responsibility. To any person, owning a house gives the taste of independence and freedom to live your life to the fullest.

For women, both are important and help to create an asset base for themselves. It helps to secure their future and they don't have to depend on others to meet the basics of life.

The home loan benefits for women in India and supportive government schemes allow them to work on their dream to own a house. Furthermore, women as co-applicant in home loans increase the chances of home loan approval, benefitting all stakeholders.

To check for the home loan benefits for women in India, visit the nearest branch office of your lender or you can use the home loan eligibility calculator to see the maximum amount you may be able to get based on a few key parameters.