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Tata Capital > Blog > Loan for Home > Why Should You Keep Women as a Co-owner to Avail PMAY Benefits?

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Why Should You Keep Women as a Co-owner to Avail PMAY Benefits?

Why Should You Keep Women as a Co-owner to Avail PMAY Benefits?

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.

Also, read – Loan for Women: Apply Personal Loan for Women

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.

Also, read – Business loans for women up to Rs. 90 lakh at low interest

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.

Also, read – Home Loan for Women: Interest Rates, Eligibility and Benefits

Tax benefits

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.

Also, read – Top 10 Government Schemes for Women Entrepreneurs

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.

What Are the Pradhan Mantri Awas Yojana Benefits for Ladies?

Pradhan Mantri Awas Yojana offers women several benefits to promote home ownership and financial security. 

Below, we list some of the biggest PMAY benefits for women:

1. PMAY subsidies for ladies: This scheme provides women with subsidized interest rates. If applying with a woman co-owner, borrowers may receive subsidies of up to Rs. 2.67 lakhs. 

2. Lower interest rates: Another PMAY female applicant benefit is reduced interest rates on home loans. 

3. LIG and EWS benefits: Another major Pradhan Mantri Awas Yojana benefit for ladies is that those belonging to the LIG and EWS categories can avail subsidies of 6.5% on loans up to Rs. 6 lakhs!

Also, read – 10 Best Business Ideas for Women at Home

Eligibility Criteria for PMAY Benefits for Women

Men’s and women’s PMAY criteria can overlap. However, there are key rules governing PMAY subsidy eligibility for ladies. Below, we list the PMAY eligibility for women:

  • To begin, women must belong to a specific income category. These include the EWS, LIG, MIG1, and MIG2 categories. 
  • Second, to be eligible for benefits, PMAY’s female eligibility rules require that at least one female member be a co-owner of the property. 
  • Applicants must not already own another ‘pucca’ house or have previously availed of government housing benefits. 
  • The age requirements typically range from 21 to 65. 

For further information, visit the PMAY website!

Also, read – Udyogini Scheme: A Scheme for Women Entrepreneurs in India

How to Apply for PMAY Benefits as a Woman Homeowner

Wondering how to apply for PMAY for women? The PMAY online application for women is straightforward and easy to follow. We break down the steps below:

  1. To begin the PMAY application for ladies, visit the PMAY official portal. They can also approach any approved banks or financial institutions to begin their applications. 
  2. Then complete the required paperwork and forms. 
  3. You may be required to submit certain documents, such as your ID proof, address proof, income documents, property documents and more. Keep them handy to prevent delays. 
  4. Once the forms have been filled out and documents uploaded, submit your application online or at the authorised financial institution. 

For more information regarding the PMAY process for women homeowners, visit the PMAY portal!

In conclusion

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!

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FAQs

Is female ownership mandatory for availing PMAY subsidy?

 

Yes, it is mandatory to have a female co-owner under PMAY (Urban). The woman must be a family member (e.g., a wife or unmarried child). This is to encourage more female home ownership amongst families in urban areas.

How much subsidy is women eligible for under PMAY?

 

One of the PMAY benefits for women is subsidies. Women applicants can avail up to Rs. 2.67 lakh of subsidies on their home loans. It is also important to be aware of the category you are applying under, such as EWS, LIG, or MIG, for more information on subsidies. 

Can unmarried women avail PMAY benefits as sole owners?

 

Yes, unmarried women can avail of Pradhan Mantri Awas Yojana benefits for women, even as sole owners, as long as they meet the income, property, and other eligibility criteria. Under PMAY, there is no marital status restriction, and single women are treated the same as other applicants.

What documents are required to add a woman co-owner?

 

To avail of PMAY benefits for women, the female co-owner must provide the same documents as any other applicant. This usually includes ID proof (such as her Aadhaar card or PAN card), proof of address, passport-size photographs, and property documents (such as a sale deed reflecting co-ownership). 

Does adding a woman as co-owner reduce home loan interest rates?

 

While there are no fixed rules, some financial institutions may offer slightly lower interest rates on home loans with a female co-owner or applicant. Under the PMAY scheme, depending on the applicant's income category and other factors, a lower interest rate may be offered as well.

Are PMAY benefits different for women in EWS, LIG, and MIG categories?

 

PMAY benefits for women can vary by income category. However, female ownership, or at least co-ownership, is required for EWS and LIG applicants under PMAY(U), while MIG applicants can claim benefits without it. Subsidy amounts, interest rates, and loan amounts vary by category.

How does female co-ownership impact stamp duty and tax benefits?

 

In many states, female co-ownership could offer lower stamp duty rates, which helps reduce your upfront costs. The stamp duty amount can vary by state, but generally, it is between 1% to 2% lower for women than for other applicants.

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