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Top 5 Housing Loan Benefits For Women

mahindra-finance-author

by Mahindra Finance

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February 22, 2024

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5 mins read

housing loan benefits for women

In India, women get several benefits while buying a home, thanks to several offers provided by lenders coupled with a home loan scheme for ladies. Opting for a housing loan for women while purchasing a residential property adds to the benefits women homeowners can get in the country. Taking a housing loan for women, therefore, is one of the smartest financial decisions for a family. 

Here we have mentioned what are the benefits of taking a home loan for women and how they can benefit: 

What are the benefits of taking a home loan for women?

From lower interest rates to extended repayment tenures and governmental subsidies, the benefits for women borrowers taking home loans are substantial. Below are the home loan benefits for ladies: 

Lower interest rate on home loan for women borrowers

Home loan interest rates for women can vary between lenders, with some institutions offering lower rates specifically for female borrowers. While this isn't a universal practice across all lenders, it's worth investigating different options to find a provider that offers favorable rates to you. By selecting a lender with reduced interest rates for women, if you are seeking a home loan, you can potentially save money, making homeownership more attainable and cost-effective.

A lower home loan interest rate for women has several benefits. For one, you will have to pay a lower EMI (Equated Monthly Instalment) towards the repayment of your home loan. Secondly, you will end up paying a lower amount to the bank in comparison to a home loan taken by a man at a higher interest rate.

Longer Home Loan Repayment Period For Women

Lenders offer a longer repayment period for women as they believe that women are more reliable when it comes to repayments. Therefore, lenders are more confident in providing housing loan for women with a longer tenure, along with a lower interest rate.

Higher disbursement amounts

Lenders also offer higher loan amounts to lady borrowers opting for housing loan for women. This increased loan sanction, coupled with simpler eligibility criteria, simplifies the process of applying for a home loan for a woman. 

Benefit as co-borrowers

Last but not least, several lenders in India allow women to apply for a home loan along with a co-applicant or co-borrower. Having a co-applicant or co-borrower, which could be their husbands, sons, daughters, or other family members, can provide a higher loan eligibility as the combined income of the two would be higher than an individual’s income. This means that you can take a higher amount as a home loan as compared to what a single individual would have got with his or her home loan application.

Lower stamp duty

Last but not least, women home loan borrowers have a lower stamp duty on the registration of their homes. This is because of a home loan scheme for ladies that provides a subsidy of 1% to 2%, depending on state to state, on stamp duty. 

While a 1-2% reduction may appear insignificant at first glance when factoring in the total cost of the property and calculating 1-2% of that sum, the resulting savings are considerable.

Conclusion

Taking home loan benefits for ladies is indeed one of the most fruitful financial decisions that one could make in a lifetime. You can avail tax deduction benefits with the repayment of EMIs towards your home loans. Last but not least, you can also benefit from no prepayment charges as well as from the other home loan scheme for ladies. 

Mahindra Finance helps women kickstart and grow their businesses hassle-free. They offer easy applications, straightforward qualifications, flexible terms, and low-interest rates. With their support, women can chase their dreams without money holding them back.

FAQs

1. Which home loan benefits for ladies relate to lower interest rates?

Lower interest rates for women borrowers make monthly EMIs more manageable and less stressful. Lenders offer these rates considering women more reliable, thus facilitating easier repayment.

2. How do simple eligibility criteria help women access high loan amounts?

Simple eligibility criteria allow women to access high loan amounts, ranging from ₹30 lakh to ₹10.50 crore, making the application process easier and more accessible.

3. What advantages do longer repayment tenors offer to women borrowers?

Longer repayment tenors, up to 40 years, enable women borrowers to lower their EMIs, reducing financial pressure and facilitating effective management of other commitments. Additionally, the absence of charges on part-prepayments and foreclosures adds convenience to the repayment process.

4. How do women borrowers benefit from reduced stamp duty charges and tax deductions?

Women registering the house in their name can avail of lower stamp duty charges, typically 1%-2% lower than those for male buyers. Additionally, women can claim tax deductions of up to Rs. 1.5 lakh on principal repayment and Rs. 2 lakh on interest repayment for a self-occupied home, enhancing their overall savings and affordability.

5. How does the Pradhan Mantri Awas Yojana (PMAY) benefit women borrowers?

The PMAY scheme mandates co-ownership, offering women borrowers an interest subsidy of up to ₹2.67 lakh. Additionally, it gives preference to women applicants, contributing to a 6% rise in the number of women applying for home loans in India.

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