In India, untilrecent times, it was usual for women to leave the financial decisions to the men in the family. Even working women, whose income was at par with the men’s income, used to rarely get involved in any financial decisions like investments, insurance, and taxation. With the situation in hand, buying an asset for women seemed to be a daunting task. However, with changing times, this scenario has also changed. Successive Governments have tried to introduce policies that encourage women in taking interest in the financial sector. Due to the undying efforts by Government, today, the situation has changed. Women have started investing in the financial sector and are also motivated to invest in the real estate sector. To add to this motivation, banks and financial institutes are also offering lending benefits, to encourage more women buyers.
Lower Rate of Interest
The first major deciding factor while applying for a home loan, is the lending rate or the interest rate. To encourage women buyers, the interest rate is usually on a lower side than that for male buyers. Currently, most banks are offering a discount of 0.05% on the interest rate for women borrower. Though the percentage appears to be on a lower side, when the cost of the property is taken into consideration, this number plays a significant role! The EMI will be lesser and thus, the burden on monthly budget will be lesser.
Concession in stamp duty
Stamp duty is one of the money components that needs to be paid to the State Government, on any property transaction. Each state’s stamp duty differs from the other, and the amount is decided by the State Government. Many Indian States offer lower stamp duty rates when a woman buys property as a sole buyer or as a co-owner. The stamp duty charges for women may be 1-2% lower than the rate applicable for men. Also, if the property is jointly registered in the women’s name, discounts can be availed.
Higher Chance of Getting a Loan
All loan applicants must follow a fixed process while applying for the home loan. This process involves the eligibility check that every applicant must clear, to make sure he/she can avail the home loan. To make sure the eligibility check phase passes smoothly, the lender must submit all the required documents and proofs, to prove a satisfactory credit score. Generally, loans applied by women lenders are less likely to be rejected, as compared to their male counterparts. Women are considered to be more regular in replaying the loan, and thus are likely to get a home loan sanctioned as compared to the male applicants. With digitization being on top of the charts this year, many banks and financial institutions have taken their entire loan application process online. Thus, it is easier for women to apply for home loan online, sitting in the comfort of their home or office.
Joint home loan not only allows you to share debt burden but also share the benefits. A woman home loan applicant can claim a tax deduction of Rs 2 lakh, as per the latest Union Budget 2017, on the interest paid. Also, if the home loan is jointly applied by a couple, then both can avail tax benefits.
As per the latest schemes launched, one of which is the Poverty Alleviation Scheme, the woman’s name must be included in the land titles of the plot that the Government allocated. In another scheme titled, Housing for All Mission, it is mandatory to have a woman co-borrower or primary borrower for the affordable housing schemes.