The times are not too far when the number of women home loan applicants will far exceed their male counterpart. In India, the government and lenders leave no stones unturned to ensure that women loan applicants get the best terms and benefits when they decide to build a house of their own.
Read on to find out the benefits of applying for a home loan for women in India.
Lower Home Loan Interest Rates
Indian lenders usually consider women as reliable and disciplined borrowers. As a fact, the chances of loan default are much lower for female borrowers.
Hence, they offer a 0.5% to 1% lower home loan interest rate for women applicants. While a 1% reduction in interest rate might not look substantial, it can result in huge savings when the loan amount is big. It is better to use a House loan EMI calculator to find out the actual savings.
Simple Eligibility Criteria
Women home loan applicants enjoy relaxed eligibility criteria and higher loan amount than others. You can apply for up to 90% of the property value as the loan.
Additionally, any woman between 21 and 60 can apply for a home loan in India. Hence, a woman applicant gets additional benefits in terms of eligibility criteria and loan amount.
To check the loan amount and eligibility, you can open a free home loan calculator and type in your details.
Extended Loan Term
The loan term of a home loan is generally 25 (twenty-five) years. However, lenders often offer an extended loan term of 30 (thirty) years for women applicants.
Moreover, Indian lenders often waive off foreclosure charges for female borrowers. Hence, on the one hand, an extended loan term reduces your financial burden, while, on the other hand, you can reduce your EMIs by making part payments.
Concession in Stamp Duty
Stamp duty is a mandatory tax that states collect for every sale or transfer of property. The charges are usually between 4% and 10% of the total property cost.
The rate depends on property cost, usage, location, and status. Some states offer discounted stamp duty rates for women borrowers.
Hence, if you live in a state which offers lower stamp duty, you can save a higher amount. Use a home loan calculator to calculate the costs before applying for a home loan.
Tax Benefits Women Applicants
To encourage women to apply for home loans in more significant numbers, the government offers various tax benefits. You can save taxes of up to INR 3.5 lakh every year.
You can use the provisions of Section 80C to save taxes of up to INR 1.5 lakh on the principal component of a loan. Additionally, Section 24(B) allows you to claim tax benefits of up to INR 2 lakh on the interest component.
You can also get the same benefits if you apply for a joint house loan. You may calculate the tax benefits on a home loan calculator and decide the right loan amount.
With ever-increasing real estate price becoming the norm rather than the exception, now is the best time to use a loan calculator online to estimate the costs and apply for a loan.
However, before availing a home loan, you need to check the lender’s reputation and interest rates. Evaluate the benefits offered by your lender and the charges before submitting the application form.