Different benefits available to women on property purchase

Updated: Monday, April 7, 2014, 13:15 [IST]

In case a property is purchased in the name of a woman, they are entitled to receive certain advantages in contrast to a property being purchased by a man. Here are listed some such benefits that can be availed while buying property in the name of a woman:

Lower stamp duty charges:

Before the registration of the property, stamp duty is required to be paid as per the provisions of the 1899 Indian Stamp Act and Bombay Stamp Act of 1958. The stamp duty is nothing but the tax and can be paid either by the property purchaser or seller or as per the agreement set between the two. More often then not it is paid by the property purchaser.

The stamp duty rates levied as a percentage of the market value or agreed value of the property for conduct of property transaction vary across Indian states. Also, in some of the states, stamp duty charges vary from region to region i.e. if the property transaction is executed in an urban area, a comparably higher stamp duty is charged than rural area.

In its respect in some of the states, if property is registered in the name of a woman, lower stamp duty is charged from them in comparison to men. Likewise, women also get the benefit of lower stamp duty charges for a property transaction in a rural area.

For conversion of property from lease hold to free hold and also in case of gifts, women in few of the states are required to pay lower stamp duty charges than what is applicable for men.

Interest rate on home loan

Generally, in cases where a woman applies for the home loan as a sole or first-co applicant and is also the sole or first-co applicant, banks and financial institutions offer differential rate of interest which is marginally lower in comparison to what is charged from the male applicants. Though, the difference in interest rate is small it could mean a considerable rebate considering the longer tenure and high ticket size of a home loan.

Some of the lenders including State Bank of India in order to woo their women customers have come up with an entirely new interest rate structure. Women folk can avail a home loan from SBI up to Rs. 75 lakh at 10.10% while for other new borrowers the rate is 10.15%. For higher ticket size loans of over Rs. 75 lakh, women are charged an interest rate of 10.25% while others are charged 10.30%. To align its home loan rate with the current market rate and also to increase its home loan portfolio, the bank also raised the interest slab from Rs. 30 lakhs to Rs. 75 lakhs.

Other lenders in the home loan segment are also providing fair deal to female home loan borrowers. For instance, Tata Capital Housing Finance came up with a scheme featuring differential rate of interest for women borrowers that is a limit period offer applicable till today i.e. March 8 which is celebrated as women's day internationally.

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