As a woman in India, you have access to a range of benefits when it comes to home loans. Whether you’re a first-time homebuyer or looking to upgrade to a bigger home, these benefits can help you achieve your goals. Read on about home loan benefits for women in India to learn how to take advantage of these amazing benefits!
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Role Of Women In The Home Loan Market
The role of women in the home loan market is significant, with more women in India seeking home loans for various reasons such as buying a new home, expanding their business, or renovating their existing property.
Women are becoming more involved in the home loan market as co-borrowers and guarantors.
However, women borrowers face certain challenges such as a lack of financial literacy and documentation requirements, and may also face discrimination in loan approvals.
Having a female co-borrower or guarantor can have advantages such as lower interest rates, longer repayment tenures, and higher loan amounts.
Under Pradhan Mantri Awas Yojana women can avail of home loans with a 6.70% interest rate.
The involvement of women in the home loan market is crucial for the growth of the housing sector in India, and efforts must be made to empower women with financial knowledge and resources to make informed decisions about home loans.
You can apply for a home loan hassle-free on our portal.
Home Loan Benefits For Women In India
In India, women who are seeking to purchase a home or property can benefit from a range of exclusive advantages when it comes to home loans.
These benefits are designed to support women and encourage them to become homeowners. Some of the key home loan benefits for women in India are as follows,
Lower Interest Rates
Lower interest rates are one of the most significant home loan benefits for women in India. This is a special benefit extended to women borrowers to encourage them to become homeowners.
Women can receive interest rates that are up to 0.05% to 0.1% lower than those offered to men.
This can result in significant savings over the life of the loan.
The lower interest rates benefit for women is aimed at promoting gender equality in the housing sector and providing women with greater access to affordable home loans.
This benefit is available to both salaried and self-employed women borrowers and can be availed of for both buying a new home and for a home loan balance transfer.
Female borrowers can also combine the benefit of lower interest rates with other home loan benefits such as longer repayment tenures and income tax benefits.
With the help of these benefits, women can achieve their dream of owning a home and building a better financial future for themselves and their families.
Higher Loan Amounts
In India, female home loan borrowers are eligible for higher loan amounts as compared to male borrowers.
The higher loan amounts benefit for women is aimed at addressing the gender pay gap and providing women with greater access to affordable home loans.
Women borrowers can avail of up to 80% to 90% of the property’s value as the loan amount, such as from 50 Lakhs to 5 Crores depending on the lender’s policies.
This can help women borrowers to finance their home purchase or renovation with ease.
Higher home loan amount benefits can be avail to both salaried and self-employed individuals.
Longer Repayment Tenure
The longer repayment tenure is another home loan benefit for women in India which aims to promote equality and encourage female homebuyers.
The longer repayment tenure benefit provides women with more time to repay their home loans, thus reducing their monthly EMI (Equated Monthly Installment) payments.
This makes it easier for women to manage their finances and also helps them to become eligible for higher loan amounts.
Women borrowers can opt for a repayment tenure of up to 30 years, depending on the financial institution’s policies and terms.
The longer repayment tenure benefit is available for both salaried and self-employed women borrowers and can be availed of for both buying a new home and for a home loan balance transfer.
Lower Stamp Duty Charges
In addition to other benefits, female home loan borrowers in India can also benefit from lower stamp duty charges.
Stamp duty is a tax that is levied by the state government on the purchase or transfer of property.
The stamp duty charges can vary from state to state, but in some states, women borrowers are eligible for a discount on the stamp duty charges of up to 1-2% lower than the male borrower.
The lower stamp duty charges benefit is aimed at promoting gender equality in the housing sector.
This benefit can result in significant savings for women borrowers, especially for those who are purchasing high-value properties.
Here are stamp Duty Charges for Women in India,
| City | Stamp Duty Charges for Female |
| Stamp Duty In Mumbai | 5% |
| Stamp Duty In Pune | 6% |
| Stamp Duty In Bangalore | 2-5 % |
| Stamp Duty In Noida | 7% |
| Stamp Duty In Delhi | 4% |
| Stamp Duty In Uttar Pradesh | 6% |
Income Tax Benefits
Female home loan borrowers can also avail of income tax benefits on their home loan repayments.
Under Section 80C of the Income Tax Act, women borrowers can claim a deduction of up to Rs. 1.5 lakh on the principal amount of the home loan repayment.
Additionally, under Section 24 of the Income Tax Act, women borrowers can claim a deduction of up to Rs. 2 lakhs on the interest paid on the home loan repayment.
These deductions can be availed of every financial year, thus providing significant tax savings for women borrowers.
Home Loan For Women Eligibility Criteria
Banks and financial institutions provide many home loan benefits for women in India. Here are some eligibility criteria a woman home loan borrower must be fulfilled,
- She should be an Indian citizen.
- Age must be between 20 and 60 years old.
- She should have at least two years of job experience.
- The minimum credit score needed is 650.
- Required monthly family income of at least Rs. 15,000.
Can A Housewife Apply For Home Loan?
Housewives are also eligible to apply for loans, even though banks and other financial organisations make it clear that they must have a reliable source of income.
A housewife can offer gold jewellery as security or collateral to get a home loan.
A housing loan is a secure type of loan that enables the submission of collateral to the bank.
Housewives also can use their fixed deposit as collateral for a home loan.
FAQs
| Do women get benefits from home loans?
Women get benefits from home loans such as lower interest rates, higher loan amounts, low stamp duty charges and tax benefits. |
| How much lower interest rates can women get on home loans?
The interest rate offered to women borrowers is generally 0.05% to 0.1% lower than the interest rate offered to male borrowers. |
| Are there any tax benefits available for women on home loans?
Yes, women who are co-borrowers or sole owners of the property can claim tax benefits on the principal and interest components of the home loan under Section 80C and Section 24B of the Income Tax Act. |
| What are the eligibility criteria for availing of home loan benefits for women in India?
Women who are Indian citizens, above the age of 18 years, and have a regular source of income can apply for a home loan. |
