For a middle-class Indian, buying a house is a big decision given the financial responsibility of affording one. What most homebuyers do is apply for home loan plans to arrange for the required finances. For women, there are numerous advantages that are available if they are opting for a home loan to buy a house. These benefits can even include getting a lower interest rate on a home loan. Now, this is definitely a big deal as even a slight difference in the housing loan interest rate can help a borrower save a significant amount.
To learn more, read on to understand how women can make the most of the benefits offered by the government and various lenders:
Women can get reduced stamp duty while buying a house
Stamp duty is a legal document for the government tax that is payable under Section 3 of the Indian Stamp Act of 1899. Now, this amount can increase the cost of the property. For encouraging more women to own properties, there are many state governments in India that offer a reduction in stamp duty charges. Women can get a reduction of about 1% to 2%, and while this might not seem like much, it can actually help in saving a significant amount. To understand this better, a working mother buying a house worth Rs 1 crore can actually save up to Rs 1 lakh to Rs 2 lakh in stamp duty charges.
Financial institutions offer women lower interest rates on home loans
The interest rate on home loans is one of the biggest factors that borrowers focus on while deciding which loan plan to go for. This comes as no surprise since the interest rate can be vital in influencing a home loan’s monthly instalments. There have been cases where borrowers have struggled to clear their home loans because of the high interest rates that they are stuck with. This can even end up affecting their credit scores. Now, one of the biggest advantages that women have while applying for a home loan is that lenders often offer a lower interest rate to female borrowers. While the difference might be minimal, it can still be influential in easing the monthly instalments of the home loan. A low home loan interest rate can also help in lowering the total cost of the loan.
Women can also get approvals for higher loan amounts
Real estate prices can get quite expensive. So, it is quite understandable for borrowers to be in need of a higher loan amount. Now, one of the key benefits that financial institutions can offer female home loan borrowers is a higher loan amount. Along with a high loan amount, lenders usually offer a period of 20 years to repay the loan, which gives the borrower enough time to comfortably pay off the loan in monthly instalments.
Working mothers that take a joint home loan can also increase their home loan eligibility along with getting an increased total tax deduction (tax benefits for each co-applicant).