Gone are the stereotypical days, which saw only men take on financial responsibilities. Today, women have an equal share in taking care of expenses. In fact, there are many home loans where women are primary borrowers.
Did you know that there are many benefits if the home loan is availed by a woman? Let us look at the key benefits of a home loan for women:
- Lower interest rates
Women are actually considered more reliable as borrowers, which is why lenders offer lower interest rates to women applying for home loans. The delinquency of female borrowers is at 0.63%, which is better off by 15 basis points over the delinquency of male borrowers, as per an analysis by Financial Express, which is a business newspaper specializing in Indian and International business and financial news. Home loans for women are usually 0.05% to 0.1% lower than the usual home loans. Since this loan can stretch up to 20 years, getting a lower home loan interest rate can make a considerable difference in the EMIs.
- Reduced stamp duty
Stamp duty is a government tax that is payable under Section 3 of the Indian Stamp Act of 1899. Now, stamp duty is a legal document that adds to the cost of the property. In an effort to encourage more women to own properties, many state governments reduce the stamp duty by 1% to 2%, which can add up to a significant saving. For instance, if a woman is buying a house, which is worth Rs 1 crore, she can save up to an amount of Rs 1 lakh to 2 lakh.
- Higher loan amount and longer repayment tenure
To entice women borrowers, lenders offer high home loan amounts ranging from Rs 30 lakh to Rs 3.5 crore. Lenders also offer longer repayment tenures to women applying for home loans. Since the repayment tenure is longer, the monthly instalments would not take up a major chunk of savings. This goes a long way in easing your repayment towards the housing loan. Paying off the monthly instalments on time without any defaults will also help in improving your credit score.
- PMAY Scheme
The Pradhan Mantri Awas Yojana (PMAY) scheme is a government initiative that makes it mandatory for a woman belonging to EWS, MIG, or LIG sections of society to get an interest subsidy of up to Rs 2.67 lakh. With this scheme, there has been a rise in the number of female applications for home loans in India.
Lenders also set lenient home loan eligibility criteria for women in order to encourage them to apply for home loans. With these supportive initiatives, it is now possible to get the financial cover needed to own that dream home. Also, do not forget to make use of a home loan EMI calculator before applying for a loan. This is to ensure that you are aware of the home loan EMIs and know whether the loan plan is affordable.