Home Loan Schemes and Home Loan Interest Rate for Women

Home Loan Interest Rate for Women are softened in India

A sharp rise has been noticed in the number of women property buyers in India of late. These days, women play a crucial role in taking a key decision like home buying. About 30% of the property buyers in urban India comprise of women buyers. Financial institutes and banks are often known to offer certain privileges to women home buyers when it comes to providing Home loans for women. That’s why it’s more important for the women borrowers to acquire more knowledge on home loans and the new housing market.

women buyers home loan interest rateand stamp duty prices discounted
Women Power – Dream Big and Invest in Real Estate
Here are some of the advantages female homebuyers have in India:
  • Women home buyers can avail home loans at cheaper rates from some of the leading Indian banks and financial organizations. Banks are keen to lend funds to women as they don’t miss out on the due dates and repay loans more punctually. However, the banks tend to run a check on the Adhaar Card, PAN Card, Driving License, and Voter ID prior to issuing home loans to women borrowers. Certain utility bills are also sought as residence proof e.g. telephone bills and electricity bills.
  • Housing-for-All Mission of the Indian Government has set the norm for women to be either sole owners or co-owners of new homes at cheaper rates. This is a direct effort of our central government towards empowering women belonging to underprivileged and low-income groups. It even has a direct impact on shaping the new housing market.
  • A lower stamp duty is accepted from women across a number of Indian states. The women borrowers are expected to pay 2% lesser on stamp duty in states like Haryana and Delhi. That’s one reason why some of the couples tend to get their properties registered jointly in the name of the female partner. A lower stamp duty is met even when the female partner receives the property in the form of a gift.
  • Women home buyers can even enjoy a tax deduction worth 2,00,000 INR on the amount of their home loan interest. While letting out your property, the rate of interest to be met by you and your husband are subject to tax deductions if you sign up as co-applicants to your home loans.
  • While letting out homes, women are even allowed to offset the net rental value by deducting the rate of interest to be met against their mortgage loans.

All key home buying tips for women suggest that the SBI is not just one bank that softened the rate of home loan interest for women.

‘Woman Power’ was another scheme launched  in 2015 by the HDFC bank for motivating the woman home buyers. This scheme enabled women buyers to achieve home loans with a lower interest rate 5 bps below the normal applicable home loan interest rate. The Mahila Awas Loan was yet another financial scheme that enabled women to achieve an amount of up to 12 Lakhs; this scheme was launched by the Aspire Home Finance, known as MALA (Mahila Awas Loan from Aspire) Scheme. The rate of interest for this loan is much higher and is directly proportional to the risk borne by the applicants as they often fail to produce proper identity proofs.

Women belonging to low-income groups are even endowed with other financial schemes like that of the MALA scheme. This scheme assists women belonging to the unorganized sector like those that are working as domestic help and daily-wage earners to be able to pull out of their financial crisis.

According to the Narendra Modi government’s Housing for All Mission, women should be either co-owners or sole owners of affordable houses. The government decided that this should be so to empower women from low-income households. In poverty alleviation schemes in Indian states like West Bengal, women’s names are included in the land titles of the plots that the government allocates to low-income households.

Women home buyers are also eligible for stamp duty concessions under certain state governments. The men in Delhi need to bear a stamp duty worth 5% of their property price while women have to bear only 3%.

In India, home ownership, which has been dominated by males for ages, is all set to undergo a radical change in favor of our women. Thanks to a large section of developers and financial institutions for all their efforts.

Author Bio:

Ron Johnson has worked as a financial strategist for a few eminent business houses based in India. Ron is still attached with many such organizations that boast a strong presence throughout the web. Currently, he’s involved in shaping the roadmap for a few resourceful global websites that expedite corporate financial solutions for fortune 500 clients.