Women today are making revolutionary career choices in their quest to be financially independent. They are no longer shying away from accomplishing significant milestones in life like buying a home for themselves or their families. Whether they are purchasing their dream residences independently or as a co-applicant with their spouse, they are entitled to some additional benefits when they apply for a home loan.
Let us enumerate some of the prominent advantages they enjoy when they apply for a home loan independently or as a co-applicant
Favoured applicants
Data analytics shared by lending institutions have confirmed that loan default by women is much lower in comparison to men. This makes them eligible for higher loan amounts. The process of application of home loans for women is also more straightforward. Besides, they are facilitated to choose longer loan tenors, of up to 25 years. These have definitely empowered them to become homeowners.
Lower rate of interest
Most financial institutions are encouraging women to invest in homes and have come up with schemes offering lowering interest rates for them. This is applicable if the lady is an independent buyer or even if she is a co-applicant. Obviously, this lower rate results in an eventual impact on the EMIs and lead to significant savings over the period of the loan.
Benefit even as co-owners
As mentioned above, women stand to gain even when they apply for a home loan as a co-applicant with their spouses. In the case of joint owners, the incomes of both the owners are taken into consideration before arriving at the final home loan amount. The total loan granted in such a case is higher than it would be if it concerned a single owner.
Reduction in Stamp Duty
The government has been encouraging homeownership for women as well. Many state governments have a lower rate of stamp duty charges (by 1-2%) for females. As a result of this, a lady can save Rs 80,000 – Rs 1,60,000 on a property that is worth Rs 80 lakh.
Tax gains
When a woman is applying for the loan independently, she can claim tax deductions up to Rs 1.5 lakh on the principal amount under Section 80C. She can also save up to Rs 2 lakh if she claims for a tax deduction on interest under Section 24 of the Income Tax Act.
In case of joint ownership along with her spouse, they can claim tax deductions up to Rs 3 lakh on the principal under Section 80C and Rs 4 lakh on interest under Section 24.
PMAY
A woman needs to be a co-owner to avail of a subsidy of Rs 2.67 lakhs on a home purchase under the Pradhan Mantri Awas Yojana (PMAY) scheme. This noble initiative by the government of India also provides home loan benefits to single women, widows who belong to the Economically Weaker Section (EWS) as well as the Lower Income Group (LIG) categories.
Reputed developers count
The latest trend in the real estate market, according to industry experts, is a demand for spacious homes offering a better lifestyle, at more affordable prices. This makes it a very opportune time for women to consider buying a home. However, it is very important to buy property through credible builders only – this goes a long way in making the home-buying process simpler and hassle-free. Top developers like Arrjavv and others who have built their strong standing in the market through an excellent delivery record are safe bets for any woman looking to buy her preferred living abode.