Introduction to Property Buying

Home Loan Benefits for Women

Home Loan Benefits for Women

Buying a home remains one of the major financial goals of most families. The home loan tenure can typically be availed for as long as 20-30 years. Due to its long tenure, the loan cost to home buyers can be high. This cost can be reduced if the home loan is applied by a woman. Also, since increasingly women are becoming financially independent, they want to own a home for themselves. Home finance institutions also extend a list of benefits for women borrowers. Let us look at these benefits.

Lower Interest Rates

Lending institutions in India believe that women borrowers are more reliable and financially prudent as compared to their male counterparts. Hence these companies offer a benefit of 0.05% to 1.00% on home loan interest rates. This might look insignificant at the face of it but when calculated for a home loan tenure of 20-30 years this amount turns out to be significant.

Lower Interest Rates

Lending institutions in India believe that women borrowers are more reliable and financially prudent as compared to their male counterparts. Hence these companies offer a benefit of 0.05% to 1.00% on home loan interest rates. This might look insignificant at the face of it but when calculated for a home loan tenure of 20-30 years this amount turns out to be significant.

Stamp Duty

The stamp duty on homes registered in the name of women is about 1%-2% lower in most of the states as compared to the applicable duty for men. So on a property worth Rs 50 lakh, a woman borrower stands to save around Rs 50000 – Rs 100000.

Stamp Duty

The stamp duty on homes registered in the name of women is about 1%-2% lower in most of the states as compared to the applicable duty for men. So on a property worth Rs 50 lakh, a woman borrower stands to save around Rs 50000 – Rs 100000.

State Male Female
Ahmedabad 4.9%
Registration fees: 1% of the Market value of the property or the transaction value whichever is higher.
4.9%
Registration fees: EXEMPTED
Lucknow 7% 6% (When value of the property is less than 10 lakhs)
7% (When value of the property is more than 10 lakhs)  
Mumbai – Within Municipal Limits 6% of the market value of the property 6% of the market value of the property
Mumbai – Within Municipal Panchayat 4% of the market value of the property 4% of the market value of the property
Mumbai – Within Gram Panchayat 3% of the market value of the property 3% of the market value of the property
Pune 6% 6%
Rajasthan 5% 5%

PMAY Benefits for Women

Women can avail benefits under PMAY (Pradhan Mantri Awas Yojana) scheme which is a government initiative to provide ‘Housing for All’ by 2022. Under this scheme it is mandatory for a woman to be the co-owner of the property which offers an interest subsidy up to Rs 2.67 lakh.

Tax Benefit for Women Borrower

All taxpaying women borrowers are eligible to claim home loan tax deductions of up to Rs. 3.5 lakh. Under Section 80C, borrowers can claim tax deduction of up to Rs. 1.5 lakh on home loan repayment. And under Section 24(b), borrowers can claim tax deduction of up to Rs. 2 lakh on home loan interest.

Section Tax Deduction applicable on Limit
80C Principle Paid Up to Rs 1.5 lakhs
80C Stamp Duty Rs 1.5 lakhs
24(b) Interest paid Up to Rs. 2 lakhs

Women as a Co-Borrower

A woman can be a co- applicant/ borrower with her spouse. Combined income would mean eligible for higher loan amount and a woman is considered as more trusted person when it’s come to repaying the loan. Chances of defaults are relatively less. This makes the whole sanction process faster. 

These benefits go a long way to empower women both financially and economically while giving them an opportunity to own a house property. This is the reason why more and more women are applying these days to avail the benefits extended by the government and the home finance institutions.