With women increasingly becoming financially independent, the number of women applying for home loans has also increased drastically. In fact, the average ticket size among women seeking such loans increased 7.4% in FY21, as compared to the previous year, according to the Home Loan Refinancing in 2021 report. One of the major reasons for this could be the many additional benefits that are provided to women seeking a home loan.
In addition, the Government of India is also encouraging women to become homeowners with benefits under the PMAY scheme and tax benefits. So, if you are a woman looking to own a home or can make a woman a co-applicant for a loan, it might be easier to get approval. Here are some other benefits women stand to gain when they apply for home loan.
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1. Concessional rates
Women enjoy better and lower home loan rates. The interest rate on loans is usually based on the risk profile of the applicant. Women, in general, tend to be viewed as being lower risk. One must remember though that gender does not play a role when it comes to your credit score. Your loan application can get rejected based on your credit score. You also need to check the required documents that you need to submit for home loan approval.
2. Low Stamp Duty Charges
A stamp duty charge is a mandatory tax imposed by the state government during the sale or transfer of property. The amount depends on various factors, like the location, status, usage and value of the property. Here, even a small concession can mean big savings. Here too, financial institutions offer a lower rate of interest to women. Although it might feel like a nominal amount, but the amount saved can be quite substantial while purchasing a home.
3. Easy Eligibility Criteria
The eligibility criteria for home loans for women are not just simple, women are more likely to be eligible for higher loan amounts. Along with this, a bank provides easy qualifying criteria that make it much easier for women to take loans. Women can also avail benefits under the PMAY (Pradhan Mantri Awas Yojana) which makes it mandatory for women to be co-applicants when applying for a home loan, with the aim of empowering women to secure their financial future.
4. Longer Repayment Tenures
Women can also avail a longer period of tenure for loan repayment. This gives you a chance to lower your EMI so that you can save for other financial goals. This takes the stress out of repaying the home loan while taking care of other commitments. No charges are levied on prepayment, with a maximum repayment tenure of 30 years.
5. Tax Benefits
When taking a home loan, women can also avail amazing tax benefits. Women can also claim tax deductions if the loan is taken with a co-applicant. For example, if you take a loan with your husband, the couple can claim deductions each on the principal amount. And since you and your husband are co-owners, you will be able to claim your tax deductions on your earnings on the purchase of your property under various sections.
So, if you’ve been thinking about becoming a homeowner, check out all the benefits you can avail as a woman.