Home Loan Interest Rates for Women and Their Benefits

A common dream expressed by many of us is that of owning a home. One of the popular ways chosen by many to make this dream a reality is a home loan.

Home loans make it possible, especially for middle and below middle class people, to own a dream home. Home loans have their own set of benefits and advantages. Women, in particular, can benefit a lot from home loans. In this article we will explore home loan interest rates for women and their benefits.

 

It is true that a woman of this era is more keen on becoming independent and establishing her own identity. One way through which they can feel a sense of security and independence is by owning a home. 

 

Home Loans and Their Types

 

There are several types of home loans offered by financial institutions. Each caters to a specific need and want. Some loans offer more holistic monetary benefits. It all comes down to which kind of loan you prefer at the moment.

 

The following are the various types of home loans available for potential homeowners-

  • Loans to buy land

  • Loans to buy a home

  • Loans to facilitate the construction of a property

  • Loans towards house extension (or) expansion

  • Loans for home conversion

  • Loans towards home improvement

  • Loans for NRIs

  • Loans towards Stamp Duty

 

Home Loan Interest Rates for Women

 

It is an established fact that women can get a concession on their home loan interest rates. The rate difference can begin from 0.5%.

The following points can help you in understanding how the interest rates* are for women home loan borrowers-

  • Home loan interest by SBI - The SBI home loans interest rates for women can range from 6.95% to 8%.

  • Home loan interest by HDFC - Here, the interests can range from 6.90% to 7.60%.

  • Home loan interest by PNB - Here, the interest rate can fall between 6.80% to 7.70%.

  • Home loan interest by Canara Bank - Interests can fall between 6.90% to 8.85%.

 

*All the above given interest rates are not the final fixed rate. They are illustrated to give you a general idea. We advise you to contact and confirm from the respective banks regarding the interest rates.

 

Home Loan Benefits for Women

The following are the benefits a woman home loan borrower can enjoy.

 

Lower Rates of Interest

 

Lenders and financial institutions often encourage women to invest in real estate by offering them loans with lower rates of interest. The home loan interest rates for women are reasonably lower than the general rates of interest. 

A lower rate of interest results in an affordable home loan. These lower rates of interest also extend an effect on the EMIs (Equated Monthly Instalments). This allows a less burdensome loan repayment process.

 

Low Stamp Duty Charges

 

During the acquisition process of a property, the state government levies a mandatory tax known as the Stamp Duty charge.

 

The Stamp Duty charges are different from state to state. There are several aspects that influence the charges. Some of them are-

  • Property’s location

  • Property’s status

  • Property’s current value

  • Usage of the property

 

Many state governments decreed lower Stamp Duty charges for women purchasing real estate properties. This is another big benefit that can be accessed when women apply for home loans. State governments allow for a concession of 1% to 2% on the charges.

Such lower charges amount to a very considerate saving while purchasing a property. 

 

Tax Deduction Benefits

 

Another one of the major benefits for women in home loans  is tax deduction.

 

As per the Income Tax Act, 1961 (Section 80 C) women home loan borrowers are allowed for tax exemption up to 3.5 lakhs on principal repayments. Under the same section, they can also claim for a deduction on tax up to 1.5 lakh rupees on the repayment of the home loan. 

Under the same Act, in a different Section (24(b)), women home loan borrowers can claim for 2 lakh rupees on the home loan interest rates.

 

The following points include a more brief explanation of the tax deductions under the Income Tax Act that can be claimed-

  • For the Section 80 C exemptions
    - the property should be occupied by the borrower
    - the property should not be sold to another party within the first five years of occupancy
    - deductions can be claimed only in the year during which the borrower experienced the expenses.

  • To claim deduction under Section 24(b)
    - loan should be utilized only for the purpose of buying a property or towards the construction of a property
    - the construction of the house should be completed within five financial years, commencing from the date of the home loan

These tax benefits can be claimed by women even when they apply for a joint loan with their spouse.



PMAY Benefits for Women

 

To further encourage women owning property, the Pradhan Mantri Awas Yojana - a Credit Linked Subsidy Scheme (PMAY - CLSS) has been brought into initiation. This initiative allows the women in the family to own a property on their name.

 

In an insight by Bajaj Finserv, this scheme has been responsible for an increase in women home loan borrowers by 6%. 

 

The subsidy amount under the PMAY scheme is payable during the principal outstanding. Under this scheme-

  • One woman member of the family should be named as the co-owner of the property.

  • The immediate family of the woman should not be owning a ‘pucca’ (solid) house prior to this loan. 

 

For further details on the benefits of this scheme, please contact your nearby bank or the bank you are planning to apply for a loan in. 

 

Longer Repayment Tenures

 

Women home loan borrowers can apply for longer tenures for loan repayment. This allows for them to have lower EMIs which do not cut much into their budget.

Women can select a tenure as long as thirty years. There are also no prepayment charges. This allows for a planned loan process.

 

Times are changing and so are the needs of people. However, one thing that has not changed is the desire to call a place our own. Previously it was a dream that required years of toiling hard and saving. But now? Now we have many institutions that aid in owning a home in an early stage.

Home loans make the concept of home finance a lot less burdensome. They allow us to own a house while not burning a hole in our pocket. Moreover, we can now select from a catalogue of home loans according to our needs.

Women through home loans can achieve residential security. Residential security, nowadays, has become the most common and necessary need. 

 

There are many best real estate marketing companies in Hyderabad and Visakhapatnam that help in finding a suitable home. Few even take it further by helping us with a home loan process if necessary.

 

To own a home is a key milestone in all our lives. It is a dream to be nourished and fulfilled. So what are you waiting for? We hope you find your dream house soon!

 

Happy home-buying!

 

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