A home loan is a long term commitment between the lender and the borrower. The relationship goes for the loan tenure which is usually around 20-30 years. Paying monthly instalments and interest for such a long tenure can be burdensome. Home loan for salaried is easier to procure in comparison to home loan for self-employed as one can show their monthly income and hence can assure the lender of timely repayments. Home loan eligibility criteria are defined by the lenders and it is mandatory for the borrowers to abide by the same else the loan application can get rejected.
A small benefit, concession and discount comes as a saving grace and is welcomed by the borrowers. Many home lenders have special benefits and schemes for women borrowers in the country. It is to empower them and encourage them to be independent in their own domain.
Here are some benefits which the women borrowers can avail.
- Better interest rate deals
Women are more consistent in repayment of loans and are disciplined with the monthly instalments as well. The lenders find themselves more secured and hence offer better interest deals with a concession of 0.05% to 1.00% on the actual interest rate which they offer on the home loan. It is thus advisable to co-apply for the home loan with a woman and enjoy concession in rate of interest and credit score.
Even though the concession seems to be negligible, but it turns out to be a money saver at the end of the loan tenure.
1. Low stamp duty rates
Stamp duty is imposed on properties during their transfer or sale. It is charged by the government of the states and varies from one to another. Stamp duty is an integral aspect of the property cost and even a slight discount results into huge savings. The stamp duty rates are dependent upon factors such as type, location, status and usage of the property. The rates float between 4 per cent to 10 per cent of the cost of the property. However, if the property in question is registered for a woman either as sole ownership and as co-applicant, the government offers a considerable concession of 1-2% of the actual stamp duty rates. The Rajasthan government, for instance, charges 5% of stamp duty on the market value of the property for the men, but the rates for women (SC/ST/BPL) is 3% and 4% (for other women) of the market value of the property. This ensures good savings for women.
2. Tax Benefits
Women borrowers can also avail tax benefits pertaining to claiming home loan tax deductions of up to Rs. 3.5 lakhs. Section 80C and Section 24(b) of Income Tax Act, 1961, allows borrowers to claim tax deductions up to Rs. 1.5 lakhs on home loan repayment and up to Rs.2 lakhs on home loan interest respectively.
These tax benefits can be availed even if the woman has joint ownership of the property. The tax benefits double in case of joint ownership as both the applicants can avail tax benefits under section 80C and 24(b).
3. Pradhan Mantri Awaz Yojana Benefits
Pradhan Mantri Awas Yojana – Credit Linked Subsidy (PMAY-CLSS) ensures women benefit from the scheme. The ‘housing for all’ scheme has laid special benefits for the women viz.
- Irrespective of whether any women in the family is buying the property or not, the name of anyone women family member needs to be registered on the ownership documents.
- To add to the convenience, elderly women and senior citizens would be given ground floor homes.
With so many benefits, it is time to apply for a home loan. One can apply for a home loan either by directly visiting the online portals of the lenders or by physically visiting them. It is, however, advisable to compare different lenders on account of their offerings in terms of rate of interest, processing fees, foreclosure charges, loan amount, loan tenure etc and choose the one which best suits your needs and requirements. LoansJagat offers this comparative platform wherein they have over 40 key market lenders under one roof and wherein they offer transparent processing and added convenience of getting your loan application processed quickly. Their dedicated relationship manager takes care of your loan processing and ensures clear communications between the borrower and the lender.
Apply for a home loan with LoansJagat today and make your dream home a reality.