Women in India are becoming more financially independent, and they are weighing in on major life decisions such as buying a home for their families. Women now have a clear road to house ownership, and with the help of friendly financial institutions and the government, they may easily achieve their goals.
Various steps have been taken to encourage women, and help them to be a homeowner, house loan companies have created particular plans and chances for women to own homes, as well as giving certain exclusive home loan incentives to women. Governments are also encouraging them with tax benefits.
Below are some benefits women can get in the country if they are planning to buy a home and looking for an affordable home loan. Using the below-mentioned benefits, they can reduce their EMI and even the tax bills.
Pay Lower Interest Rates
Several lenders provide low-interest rates to women who take out home loans, consequently encouraging them to do so. Although the interest rate on this subsidized house loan is minimal, ranging from 0.05 to 0.1%, it has a significant influence on the EMI. Your monthly payments will be influenced positively by a lower interest rate. Because a loan might last anywhere from 15 to 25 years, a reduced interest rate can imply increased affordability, significant savings, and stress-free, comfortable repayments.
Can Choose Longer Repayment Tenors
Women can repay the house loan over a longer period of time, up to 25 years, allowing them to stretch their budget by paying smaller EMIs. As a result, the financial pressure is relieved. You will be able to meet other commitments while repaying your mortgage if you choose a longer-term. Many lenders do not charge fees while making partial payments or foreclosing on a home loan. As a consequence, you have the flexibility of repaying your loans ahead of schedule and avoiding foreclosure.
Lower Stamp Duty
Stamp duty rates maybe 1% to 2% cheaper if the property is registered in the name of a woman than in the name of a male. Though 1% -2% may appear insignificant, when the whole cost of the property is considered and 1% -2% of that is calculated, the amount saved is significant.
The Pradhan Mantri Awas Yojana (PMAY) makes co-ownership a requirement and gives women applicants preferential treatment. The PMAY is the government of India's main program. It's a Credit Linked Subsidy Scheme (CLSS) that divides the country into urban and rural districts based on yearly income levels, with individuals who qualify to receive interest rate subsidies on home loans.
Women can claim tax-savings up to Rs 1.5 lakhs. When you are repaying the principal and interest amount, you can get a maximum tax deduction benefit of Rs 2 lakhs. If you and your spouse are co-owners, you will be able to claim tax deductions on your earnings on the purchase of your property under Sections 80C, 24, and 80EE and 80EEA of the Income Tax Act.
You may get a substantial loan amount ranging from Rs 30 lakh to Rs 3.5 crore to buy the property of your dreams, with lenders tightening their requirements to entice female consumers. This, along with clear qualifying requirements, simplifies the process of applying for a house loan.
It's vital to understand the responsibilities, risks, and issues that come with home ownership. To have a better grasp of what to expect when buying a house, take advantage of educational support and home financing incentives for women.