In India, the landscape of homeownership is undergoing a massive transformation, particu- larly with women taking the reins of their financial destinies. With women constituting approximately 33% of the workforce, their participation and influence in the real estate sector is notably showing an upward trajectory.

Owning a home is not just about finding a place to live; it is a significant cornerstone in an indi- vidual’s financial portfolio. For a long time, wo- men have played the role of key influencers in the decision-making process of purchasing a home. Today, they are taking a lead. MagicBricks, a platform for property buyers and sellers, has observed a 16% increase in women homebuyers between 2020 and 2023. This trend is not expected to slow down; it only gathers more steam because of the financial benefits women enjoy on home loans. Take a look.

Top financial benefits women enjoy when applying for home loans

• Lower rate of interest

Lower interest rates are one of the most significant advantages of being a woman borrower in India, and even a 2% lower interest rate can result in lakhs being saved over mortgage tenure.

The interest rate reduction not only serves as a home loan benefit for women but also aims to promote gender equality in property ownership. So, before applying for a home loan, check whether the lender offers special benefits for women.

• Higher loan amounts

Women can access high loan amounts to buy a home of their choice because lenders usually increase their sanctions to attract women borrowers. It is also based on the belief that women are likely to repay the loan on time.

• Favorable loan terms

Women borrowers are usually in a better position to negotiate aggreable loan terms, such as lower processing fees or longer repayment periods. Banks and NBFCs are generally eager to offer women borrowers loans ranging from Rs. 30 lakh to Rs. 3.5 crore and allow them to repay over a period of 25 years. This is done to encourage women to take out home loans.

• Tax benefits

The government, irrespective of gender, offers tax benefits on home loans of up to Rs. 3.5 lakh under Income Tax Act, 1961. Women can claim tax deduction of up to Rs. 1.5 lakh on home loan repayment under Section 80C, and up to Rs. 2 lakh or more under Section 24(b).

These tax benefits double when home loans are jointly applied with their spouses or other blood relatives. However, the loan applicants must both be co-owners of the property.

• Lower stamp duty

Stamp duty is the legal tax levied by the state government in the process of registering a home. This tax is levied while purchasing a property and is a costly expense that adds to the overall cost of the property. However, for women, different Indian states offer a reduction in stamp duty of 1% to 2%. This results in significant savings.

For example, if you are purchasing a property worth Rs. 1 crore, you can save up to Rs. 1 to 2 lakh because you are a woman.

• Benefit under PMAY (Pradhan Mantri Awas Yojana)

The PMAY is a government initiative that has been a game-changer in women empowerment. This credit-linked subsidy initiative targets women borrowers falling under the economically weaker section, low income group, or middle income group to secure home loan subsidy.

If you are a woman applicant with an economically challenged background, you can make the most of the PMAY scheme. By applying for a home loan under this credit-linked subsidy scheme, you can even avail yourself of concessions on interest.

Please note that several states have their own initiatives to encourage women’s homeownership. Please find out the initiatives offered by your state and take advantage of them.

Other home loan benefits for women

• Empowerment through property ownership

Owning a home provides women with a sense of pride and empowerment, allowing them to take control of their environment and future. This empowerment goes beyond financial benefits, impacting personal development and growth. It also boosts their self-confidence and encourages them to achieve incredible feats in their lives.

• Investment opportunities and stability

Homeownership opens doors to various investment opportunities for women, allowing them to diversify their financial portfolios and create a steady stream of income.

From exploring renting out part of their property to generate a small income to building equity in their homes and using it for future business endeavors, home ownership gives women financial liberty.

Moreover, homeownership offers financial stability to women, allowing them to focus on long-term goals without the fear of sudden eviction or unexpected rent increases.

Conclusion

Homeownership is a powerful tool in women’s financial empowerment. Fortunately, women in India enjoy a plethora of opportunities and home loan benefits that can make their dream of owning a home a reality. From substantial tax savings to reduced stamp duty and lower interest rates, women borrowers have the stage set for them to send in their loan applications and get the keys to their new homes.

So, what are you waiting for? Have you always dreamed of owning a home? Secure a home loan and make your dream a reality.

FAQs

What are the home loan eligibility criteria for women borrowers?

Women applicants must be between the ages of 18 and 65 years, with a regular and stable source of income. A minimum of 3 years of work experience for salaried women and a stable business with 2-3 years of profitability record for self-employed women are considered ideal. You must have a credit score of above 700, and the property to be purchased must meet the lender’s criteria.

Please know that the eligibility criteria may vary depending on the lender and your location.

How can I avail of the stamp duty concession offered by women homebuyers?

The process of availing stamp duty concession varies from state to state. Check with local authorities or your legal advisor.

Can I apply for a home loan without a co-applicant?

Yes, women can apply for home loans independently.