Sarita had a well-paying job and had been saving up to buy her dream home. Her credit score was good, so she knew her home loan would be approved easily. To top it, she had saved enough for the downpayment.
When she went to the lender, she received another piece of good news. She learnt there were special benefits for women seeking home loans. These benefits were:
1. Lower interest rates
Interest rates can make a huge difference in case of long-term loans like home
loans. Lower interest rates translate into affordable EMIs. Most lenders offer a concessional interest rate of 0.05% for women applicants.
But do remember that women can only avail the lower interest rates when they are the primary or a co-applicant on a home loan. This is an advantage as you can save a significant amount of money with a lower interest rate.
2. Tax deduction
Women also get tax benefits on home loan repayments. They can lower the taxable income by Rs 3.5 lakh if they are repaying the home loan. The deduction is Rs 1.5 lakh on the principal and Rs 2 lakh on the interest repayments.
3. Special schemes
Lenders offer various home loan packages and schemes to women who are primary or co-applicants for home loans. Lenders may collaborate with builders to offer women applicants discounts and waivers.
4. Lower stamp duty for house registration
Stamp duty costs make a difference in the total cost of the property. Although the stamp duty costs vary across states, women still enjoy lower stamp duty costs. The concession can range from 1% to 2%. So, suppose the property is worth about 75 lakh, women applicants can save about Rs 75,000 or even Rs 1.5 lakh on the total cost.
5. Higher chances of loan approval
Eligibility requirements remain the same for both male and women applicants. However, it is widely believed that women are good borrowers and make their payments on time. So, there’s a higher chance for a women applicant to have her loan approved.
To sum up
Women have a host of benefits like lower interest rates and stamp duty charges if they are planning to take a home loan. This can considerably lower the cost of buying a home.