Top Home Loan Benefits For Women In India

home loan benefits for ladies

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Last updated on 12th April 2024

In a rapidly evolving India, women are breaking barriers in various aspects of life. As financial independence and empowerment take center stage, one dream that many women in the country share is owning their own home. It not only provides a sense of security to them but also serves as a valuable asset. 

Fortunately, the landscape of home loans in India has evolved to recognize and support this dream. In India, women can take advantage of several home loan benefits for ladies specifically designed to help them achieve their dream of owning a home. These encompass a range of advantages, from reduced interest rates, to significant tax advantages, and substantial home loan subsidies for females. 

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Join us as we dig deeper into the subject of housing loans for women, uncovering the unique advantages that can make your dream of homeownership a reality. Whether you're a first-time homebuyer or looking to upgrade, this blog is your roadmap to understanding the tailored financial perks awaiting women borrowers in India.

Lower Interest Rates for Women Borrowers

One of the most significant advantages of being a female borrower in India is the opportunity to secure a housing loan for women at lower interest rates. Lenders typically offer a 0.05% to 0.10% home loan interest rate reduction for women borrowers. While this might seem like a small margin, it can translate into substantial savings over the life of a loan.

This reduction in interest rates not only serves as a home loan benefit for women but also aims to promote gender equality in property ownership and acknowledges financial stability and creditworthiness. So, when you apply for a home loan, make sure to check if the lender provides this special benefit for women.

Consider an example where a borrower secures a home loan of Rs 1 crore from a financial institution for a 20-year tenure. Male borrowers are offered an interest rate of 8.9%, while female borrowers benefit from a slightly lower rate of 8.8%. Under these conditions, the total interest payable for this loan amounts to Rs 89 lakh for men and Rs 88 lakh for women. Consequently, female borrowers enjoy savings in interest outflow totaling Rs 1 lakh throughout their loan.

Suggested read: Home Loan Interest Rate of All Banks

Tax Benefits and Exemptions

Apart from lower interest rates, women borrowers in India can also enjoy various home loan tax benefits and exemptions when taking a home loan. The Indian Income Tax Act provides several deductions and exemptions that can significantly reduce the tax liability of women homeowners. Here are some key tax benefits to be aware of, highlighting the subsidy on home loans by the government in 2023 for ladies.

a) Deduction on Home Loan Interest: Under Section 24(b) of the Income Tax Act, women homeowners can claim deductions on the interest paid on their home loans. The maximum deduction limit is ₹2 lakh per annum, and this can lead to substantial tax savings.

b) Principal Repayment Deduction: Section 80C of the Income Tax Act allows women homeowners to claim deductions on the principal amount repaid towards their home loans, subject to a maximum limit of ₹1.5 lakh. This further reduces the overall tax burden.

c) Joint Home Loan Benefits: If a woman is a co-applicant in a joint home loan, both the co-applicants can avail of tax benefits individually. This is a significant advantage for married couples looking to buy property together.

d) Stamp Duty Exemption: Some states in India offer a partial or full exemption on stamp duty charges for women buyers by 1-2%, which is a considerable saving amount in the total cost of the property. This can result in substantial savings during the property registration process.

Suggested read: Top Banks for Home Loans in India

Easier Loan Approvals

Apart from the financial benefits, women borrowers also have an advantage when it comes to loan approvals. Financial institutions in India often consider women as more responsible borrowers, which can lead to quicker and smoother loan approvals. Here's how this works:

Better Credit Profile: Women, on average tend to have stronger credit histories due to their responsible financial habits, which include timely bill payments, responsible use of credit cards, and maintaining a lower debt-to-income ratio. Women with this commendable financial record are viewed by lenders as appealing borrowers. When lenders observe a borrower's credit history, they have greater confidence in the borrower's ability to repay loans.

Higher Loan Eligibility: Lenders may be willing to offer higher loan amounts to women borrowers due to their perceived creditworthiness. This can be advantageous when purchasing a property in a prime location or a bigger home.

Favorable Loan Terms: Women borrowers may also negotiate more favorable loan terms, such as longer repayment periods or lower processing fees. They can borrow more money and have a longer time to pay it back. Banks are willing to give women loans ranging from Rs 30 lakh to Rs 3.5 crore and allow them to repay them over 25 years to encourage them to take out these loans. These extra perks make it easier for women to qualify for home loans, and that's a big advantage.\

Suggested read: Top Housing Finance Companies in India

Seize the Opportunities

In conclusion, women in India have a plethora of home loan benefits and opportunities that can make their homeownership dreams a reality. From lower interest rates to substantial tax savings, housing loan benefits for ladies are clear and significant. Additionally, the smoother loan approval process can make the entire home-buying journey less stressful.

So, if you are a woman aspiring to become a homeowner in India, seize these opportunities and take advantage of the benefits designed specifically for you. Empower yourself with knowledge, compare different lenders, and work towards your dream of having a place to call your own. Remember, homeownership is not just a financial investment; it's a milestone that brings security, stability, and a sense of pride.

FAQs about Home Loan Benefits for Ladies

Some banks and financial institutions offer special benefits or lower interest rates to female borrowers as a part of their home loan schemes. These benefits are often aimed at promoting women's homeownership and financial independence. However, the specific benefits can vary depending on the lender and the region.

According to its website, SBI provides a 5 basis point discount to female applicants for home loans. The interest rates for women typically range from 9.15% to 10.15%, depending on their credit scores.

The amount of home loan a woman can get depends on several factors, including her income, creditworthiness, the lender's policies, and the property's value. Lenders typically assess these factors to determine the loan amount they are willing to approve.

Yes, women can apply for the Pradhan Mantri Awas Yojana (PMAY), which is a government scheme in India aimed at providing affordable housing to economically weaker sections of society. There are specific categories under PMAY, including the EWS (Economically Weaker Section) and LIG (Lower Income Group), where women are often encouraged to apply as the primary applicant or co-applicant to avail of certain benefits.

It can be challenging to get a home loan without a stable source of income. Lenders typically require borrowers to demonstrate their ability to repay the loan, which is often based on their income. However, some lenders may consider other factors, such as assets or co-borrowers, to assess the loan application.

Some lenders offer lower interest rates or special discounts to female borrowers as an incentive to encourage women's homeownership. However, these benefits can vary from lender to lender, and it's essential to check with the specific financial institution to know their current policies.

Mahila loan typically refers to loans specifically designed for women, often with favorable terms and conditions to promote women's economic empowerment and entrepreneurship. These loans can be for various purposes, such as starting or expanding a business, education, or home improvement. The specific features and eligibility criteria for Mahila loans can vary depending on the lender and the type of loan product.

Published on 15th September 2023