Owning a house is still one of the most important life goals of many people. However, with property rates being a lot above the odds, it has become very difficult for people to own a house without some extended financial help. This is why home loan for women becoming quite popular these days. With home loans, it becomes easier for people to make their dream come true. When you have the right documents, a stable income, a good credit score, and the ability to repay the loan, banks or other non-banking finance companies are ready to provide you with a home loan at a certain rate of interest.
To motivate women to become homeowners and become financially stronger, the government of India is offering a lot of benefits to them. Here is all the information you need to have to enjoy the benefits.
Loan eligibility criteria
If a woman wants to reap the benefits of home loans, she needs to be an Indian citizen, should be between the age of 18 to 70, a salaried employee, should have a good credit score, preferably more than 750, and should also be either the primary applicant of the home loan.
Now that we have talked about the eligibility criteria, let’s talk about the benefits that women can avail of.
More chances of loan approval:
Under the Pradhan Mantri Awas Yojana Scheme, the government of India is giving special provisions to economically weaker sections, scheduled castes and tribes, and low & medium income group people and is helping them build their own concrete or pakka house. Now, this scheme also gives a special preference to single working women and widows. Under the scheme, home loans are processed faster and the amount is sanctioned well in time.
Reduction in stamp duty charges
When you apply for a house loan, there are a couple of charges that you need to take care of. One such charge that makes for an important part of the extra cost is the stamp duty charge. Women who apply for home loan, they get a concession of 1%-2% on stamp duty charges. It might seem like a non-significant reduction, but it makes a huge difference. For instance, if a woman purchases a property that is worth Rs 50,00,000, she can actually save up to Rs. 50,000 to Rs. 1,00,000 on the stamp duty charges.
Special tax benefits
Government offers tax saving schemes for both men and women who take a home loan. However, the maximum deduction that can be claimed for the repayment of the principal, as well as the interest amount, differs for both. While it’s Rs. 1,50,000 for men, it is Rs. 2,00,000 for women. Women who take joint housing loans with their husbands or father can avail the tax benefits equally.
Flexibility in repayment tenures
Even though most home loans have repayment tenures of up to 25 years, women who are applying for housing loans, can get the maximum repayment tenure of up to 30 years or till the time she turns 70 years old, whichever happens first.
Reduced rate of interest
Women also get to enjoy reduced rates of interest on home loans. Even if it is half a percentage less, it can still make a lot of difference.
If you are a woman looking to make your dream come true, then applying for a home loan is one of the best decisions you can make.