Published on August 11th, 2020 | by Bibhuranjan


Check Out the Ways How Women Can Benefit From Taking a Home Loan in India

Recently, house financing has become more accessible to women borrowers in India. The surge in the number of women borrowers is thanks to government incentives like preferential home loan interest rates, simple eligibility criteria, lower stamp duty charges, and various tax exemptions, among others, as compared to their male counterparts.

As a result, many lenders have come forth with specialised home loan for women, to encourage women borrowers furthermore. So, let’s see how women borrowers can benefit from taking a home loan in India.

Lower Stamp Duty Charges

Stamp duty charges vary from state to state. However, in many Indian states, stamp duty charges are lower for properties purchased by women (or in the name of a woman), for both individual and joint ownership.

Generally, the stamp duty rates for women buyers are 1%-2% lesser than the male buyers. This concession brings down the overall property cost, helping the women housing loan borrowers to save a substantial amount when buying a house.

Discounted Home Loan Interest Rates

In addition to lower stamp duty charges, several lenders are offering customised ‘home loan for women’ at discounted rates, to encourage property investment amongst women; case in point: home loan rates for women borrowers are 0.05% -0.1% lower than the market lending rate.

Consequently, the EMI amount paid on the outstanding principal is lower, making the repayment process hassle-free. To ensure this, you can use a home loan EMI calculator to estimate the EMI amount before applying for a home loan online.

Tax Exemptions

What’s more, taxpaying women borrowers can claim special tax deductions of up to Rs. 3.5 lakh on the repayment of home loan interest and principal amount, but based on specific terms and conditions. They are –

  • Deductions up to Rs. 1.5 lakh on the principal amount repayment of the housing loan, under the section 80C of the ITA
  • Deduction of Rs. 1.5 lakh on the stamp duty charges under the section 80C of the ITA
  • Deductions of up to Rs. 2 lakh on the payment of home loan interest rates, under section 24(b) of the ITA

Apart from these tax benefits, women borrowers can also claim subsidies under the Pradhan Mantri Awas Yojana (PMAY).

Benefits under the PMAY Scheme

Eligible women beneficiaries under the PMAY scheme can benefit from the Credit Linked Subsidy Scheme (CLSS). As per the credit-linked scheme, women applicants can secure a home loan online at subsidised home loan interest rates. For a housing loan, an interest subsidy of up to Rs. 2.67 lakh is offered on the outstanding principal amount.

Moreover, women applicants have higher home loan eligibility if they apply for home loan under the PMAY scheme.

Final Thoughts

A home loan is a long commitment to make; however, women borrowers can take advantage of the benefits mentioned above, for a stress-free housing loan repayment process. Apply for easy home loans by making sure that your credit score is above 700 as it can help you to borrow a larger principal amount, and at favourable terms and conditions.

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Editorial Officer, I'm an avid tech enthusiast at heart. I like to mug up on new and exciting developments on science and tech and have a deep love for PC gaming. Other hobbies include writing blog posts, music and DIY projects.

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