The Pradhan Mantri Awas Yojana or PMAY benefits for women are multi-fold. Why, yes! The central government and lenders are taking considerable steps to incentivise women to purchase a home.
Here, the primary objective is to encourage women homeownership in the country. Before diving into the host of advantages of women being the owner or co-owner while buying a property, let us understand the Pradhan Mantri Awas Yojana.
Pradhan Mantri Awas Yojana is a central government-backed initiative aiming to ensure affordable housing for the economically weaker sections by the year 2022. The ‘housing for all’ scheme offers an interest subsidy on home financing to construct, improve, buy, or extend a house.
Now, here are the women benefits for PMAY.
Benefits on subsidy
Under the Pradhan Mantri Awas Yojana guidelines, it is mandatory to register at least one woman member of a family as the owner of the house. With a woman co-owner, the maximum available subsidy is up to Rs. 2.67 lakhs. Furthermore, women belonging to the Lower Income Group (LIG) and Economically Weaker Sections (EWS) categories can get a subsidy of 6.5% on a loan of up to Rs. 6 lakhs.
Reduction in interest amount
With a woman as the co-owner, the interest on your home loan gets calculated by the daily reducing balance method. This means, if you partially prepay a large sum, the principal amount is reduced on a daily basis. Now, you pay a relatively lower interest amount.
Additional Read: Top Benefits of Buying a Home in a Woman’s Name
Partial waiver of stamp duty
Under the Pradhan Mantri Awas Yojana, many state governments partially waive off stamp duty for buyers registering houses in a woman’s name. With women as co-owners or owners, you can easily get a 1-2% waiver on the applicable stamp duty.
Apart from home loan subsidy benefits for PMAY, purchasing a home with a woman co-owner also makes you eligible for a tax rebate. If the home is self-occupied, you can receive an additional tax rebate on the interest amount of up to Rs. 2 lakhs every financial year.
Moreover, a married couple co-owning a property can claim separate tax allowances if the woman has an independent source of income. The deductions will depend on the individual ownership share of each co-buyer.
Prepayment charges waived
There are no prepayment charges for women under the Pradhan Mantri Awas Yojana. Moreover, some lenders offer discounted processing fees and lower interest rates for women homebuyers. These borrowing cost concessions can vary from one lender to another.
Additional Read: Things to Consider if You Are Planning to Become a Home Loan Co-Applicant
With an array of incentives from the central government in place, this is surely the right time for women to invest in property or become equal partners in the same. If you want to avail of Pradhan Mantri Awas Yojana benefits on home financing, turn to Tata Capital.
With competitive home loan interest rates starting at just 6.90%, you can get an amount ranging from Rs. 5 lakhs to Rs. 5 crores. Apply today to build the home of your dreams!