Home loan for women -the difference

Nearly 62% of women have reported preferring investing in real estate. As more women take jobs and shift from their homes to other cities the number of home loan aspirers is growing. Many times, women are also named as co-borrowers in the loan. Not only does this provide financial security to the woman, but it also enhances the home loan eligibility and benefits under various government and financial institution offers.

Some financial institutions also offer deals that include freebies like a free credit card, holidays or gifts to women borrowers to sweeten the already sweet pot. At Standard Chartered Bank, women can avail Home saver, a unique home financing solution that enables them to pay home loan in half the time & at half the cost.

The advantages of home loans for women

Women as single or co-borrowers get multiple benefits on taking home loans. There are some benefits that are given by the government.

• Stamp duty charges are lower for women applicants. The rate of difference varies from state to state. The difference can be from 0.5% to 3%. On a property worth a crore the difference is appreciable.
• The Pradhan Mantri Awas Yojana or PMAY has a woman-centric theme. A sole female applicant can get an interest rate subsidy of 3-4% mandated by the credit-linked subsidy scheme or CLSS. A woman can get a subsidy of 2.35 Lakhs to 2.67 Lakhs depending on her economic standing. Subsidies are also given to co-applicant women.

Some entitlements are meted out by financial institutions.

1. Home loan eligibility criteria are often simpler for women. Studies show that women tend to default less on loans and lenders have ensured that this reflects on the home loan eligibility criteria. The amount of loan availability is larger too.
2. Women can get lower home loan interest rates from most lenders. The home loan interest rates could be 0.5-1% lower. This may look like a small difference but when compounded over the long tenure of a home loan it can make a significant difference.
3. Women are usually offered longer tenures. It translates to reduced financial pressure due to EMIs. There are no pre-payment or foreclosure charges involved too.

Tax benefits of Home Loans

Tax benefits are a welcome byproduct of home loans. Both men and women get up to Rs 1.5 lakhs on the principal and Rs 2 lakhs on interest repayment in every financial year. If the loan is a joint one, both co-applicants can avail of the tax waiver, making it doubly profitable. You just need different sources of income to avail of the same.

If you want to rent out a property under a home loan, you can deduct the interest paid on the loan against the rental value. This facility is over and above the standard deduction of 30%.

Tax benefits are similar for both men and women except for the lower stamp duties mentioned earlier.

Women empowerment

Owning a home can be the pinnacle of woman empowerment. Financial security and economic independence are the cornerstones of empowerment. It has been reported that there are fewer cases of domestic violence when a woman is the co-owner of the family home. Ownership allows the woman an exit option from violence and abuse. So, apply for a home loan today.

Women enjoy higher social acceptance and have more self-esteem and confidence when they own the roof over their heads. Empowerment comes from financial stability and equal rights to property. Women are getting a voice at home and in society thanks to being homeowners. Women who have availed of home loans as co-applicants or single applicants can enjoy the security of owning their homes and move a step closer to true empowerment.