Recognising the growing contribution of women to the economy, both the government and financial institutions now offer specialised schemes and exclusive Home Loan benefits for ladies. These initiatives are designed to encourage more women to secure homes of their own.
While the number of women borrowers rose by 17.8% in 2023, including a slight increase in Home Loan borrowing, only 13% of Indian women own a house independently. Here are some benefits offered:
- Reduced interest rates
Among the key benefits of Home Loans for women is an interest rate reduction of around 0.05% to 0.10% compared to standard market rates. This is because lenders often perceive women as more reliable borrowers, with lower chances of default. The subsidised rates help increase financial inclusion and independence for women borrowers.
Additionally, they encourage joint property ownership in families, making homeownership more affordable for women.
- Relaxed eligibility criteria and higher Loan amounts
Financial institutions often offer exclusive home loan benefits for ladies, such as higher Loan-to-value ratios, which can go up to 90% of the property’s value, depending on the lender’s policy. This can allow access to higher Loan amounts. Many lenders also have more relaxed eligibility criteria for women, encouraging them to overcome traditional barriers and buy assets like homes in their names.
- Benefits from government schemes
The Pradhan Mantri Awas Yojana Urban (PMAY-U), launched in 2015, supports low-income families in securing homes at subsidised rates. For women, the scheme mandates that at least one woman be a co-owner of the property, amplifying the Women Home Loan benefits.
Women applicants in the Economically Weaker Section (EWS) and Low-Income Group (LIG) categories can benefit from the Beneficiary-Led Construction (BLC) and Affordable Housing in Partnership (AHP) components. These components often prioritise widows and single women, providing essential support for securing affordable housing.
- Tax benefits
The Home Loan benefits for ladies extend to several tax advantages, which further encourage women to become homeowners. These include a deduction of up to Rs. 2 lakh on interest paid under Section 24(b) and a deduction of up to Rs. 1.5 lakh on principal repayment under Section 80C.
First-time homebuyers can claim Rs. 1.5 lakh as an additional deduction on interest under Section 80EEA, provided the property value does not exceed Rs. 45 lakh, and the Loan was sanctioned between April 1, 2019, and March 31, 2022.
- Lower stamp duty
To encourage home ownership among women, many state governments offer rebates of up to 2% on house stamp duty to help with the purchase of a house. This results in considerable savings while reducing the cost of home acquisition. For example, with a 2% rebate on stamp duty, you can save up to Rs. 1 lakh on a property worth Rs. 50 lakh.
Conclusion
Buying a home is a big financial decision and responsibility. For anyone, owning a house brings a sense of independence and the freedom to live life to the fullest. For ladies, both are important and help to create an asset base for themselves. It secures their future without depending on others.
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