As a working woman, if you’re still on the fence about availing a joint home loan, think again! Taking a housing loan with a co-borrower can help boost your creditworthiness and reduce your debt burden favourably. However, there’s more. Did you know applying for a joint home loan comes with a slew of advantages? Yes!
From highly competitive interest rates to exclusive tax deductions on the interest payments, there are numerous perks you can enjoy as a woman primary borrower. Read on to learn more.
Better chances of loan approval
Many reports from credit bureaus suggest that women borrowers are better at handling credit and less likely to default on their loan repayments. As a primary woman borrower, therefore, you stand a better chance of getting loan approval.
Besides, lenders also consider the income, credit score, and other financial credentials of the co-borrower. Thanks to the combined income and improved home loan eligibility, you can avail of a higher loan amount while reducing repayment risks significantly.
Lower interest rates
Did you know a primary woman borrower can get loans at rates 5-100 basis points (bps) lesser than the market rate? Why, yes! To encourage homeownership among women, several lenders offer concessional home loan interest rates to women borrowers.
While this difference of 0.05% to 1% might seem insubstantial, it can considerably bring down the interest outgo and reduce your EMI burden. It also improves your monthly cash flow while offering considerable savings over the loan tenure.
Home loan tax benefits
Women borrowers can enjoy tax rebates of up to Rs. 3.5 lakh on home loan repayments. Under Section 80C of the Income Tax Act, 1961, you can claim a maximum tax exemption of Rs. 1.5 lakh on the repaid principal amount. On top of that, women property owners can also get tax deductions of up to Rs. 2 lakhs on interest repayment under section 24(b) of the Act.
What’s more, your co-borrower can also claim tax deductions separately. These tax benefits will further add to your savings.
Lower stamp duty charges
Another significant benefit for primary women borrowers is reduced stamp duty, which is a compulsory tax you must pay to the state government while purchasing a residential property. Many state governments offer stamp duty rebates of 1-2% for properties registered in a woman’s name. Since the charge affects the overall cost of buying a home, this concession can save you a substantial amount.
Just consider this: a woman primary borrower can save Rs. 50,000 – Rs. 1,00,000 on stamp duty for a house worth Rs. 50 lakhs.
Additional Read: Top Benefits of Buying a Home in a Woman’s Name
Over to you
Given the host of benefits accessible to women primary borrowers, affording your dream home is no longer a distant dream. If you’re already eyeing a property, turn to Tata Capital for competitive finance solutions.
With attractive home loan interest rates starting at just 6.90%, you can avail of a loan amount as high as Rs. 5,00,00,000! Check out our home loan offerings here.