As more and more women in India aspire to own their homes, banks and financial institutions are offering attractive housing loans for women. From lower interest rates to stamp duty rebates, these advantages can make a significant difference in making your dream of homeownership a reality.
Owning a home is a major milestone for anyone, but it can be especially empowering for women. It provides a sense of security, stability, and financial independence. However, the path to homeownership can seem daunting, especially when it comes to financing. That’s where personal loans from Airtel Finance come in.
By understanding the unique benefits of housing loans available to women, you can make informed decisions and navigate the home-buying process with confidence. Let’s dive into the top six benefits that make homeownership more achievable for women in India.
1. Lower Interest Rates
One of the most significant advantages of housing loans for women is the lower interest rates offered by many banks and financial institutions. Compared to the standard market rates, women often receive a reduction ranging from 0.05% to 0.1%. While this may seem like a small difference, it can lead to substantial savings over the loan tenure.
For example, let’s say you’re considering a home loan of ₹50 lakh with a tenure of 20 years. Here’s how a lower interest rate can impact your monthly instalments and overall interest paid:
| Interest Rate | EMI | Total Interest Paid |
| 8.5% | ₹43,391 | ₹54,13,840 |
| 8.4% | ₹43,099 | ₹53,43,760 |
In this scenario, a mere 0.1% reduction in interest rate translates to savings of ₹70,080 over the loan tenure. This can make a significant difference in managing your monthly budget and achieving your financial goals.
2. Stamp Duty Rebates
Another notable benefit for women homebuyers is the rebate on stamp duty charges. Stamp duty is a tax levied by state governments on property transactions, and it can add up to a significant expense. However, many states offer lower stamp duty rates for women, typically ranging from 1% to 2%.
To put this into perspective, let’s consider a property valued at ₹75 lakh. Here’s how much you could save on stamp duty:
| Stamp Duty Rate | Stamp Duty Amount |
| 6% | ₹4,50,000 |
| 4% | ₹3,00,000 |
By availing of the reduced stamp duty rate, you could potentially save ₹1,50,000 on your home purchase. This extra money could be used towards furnishing your new home or building an emergency fund.
3. PMAY Benefits
The Pradhan Mantri Awas Yojana (PMAY) is a government scheme that aims to provide affordable housing to economically weaker sections and low-income groups. Under this scheme, women in India enjoy specific home loan benefits, such as:
- Mandatory female co-ownership: To be eligible for PMAY benefits, the property must be registered in the name of a female member of the household or as joint ownership with a male member.
- Interest subsidy: PMAY offers interest subsidies on home loans based on income categories, making EMIs more affordable.
For instance, if your household income is below ₹6 lakh per annum, you could be eligible for an interest subsidy of 6.5% on a loan amount of up to ₹6 lakh. This subsidy is credited directly to your loan account, reducing your EMI burden.
4. Co-Borrowing Advantages: Enhancing Loan Eligibility
Another significant benefit for women is the opportunity to be a co-borrower on a housing loan. When applying for a loan jointly with a spouse or family member, having a woman as a co-borrower can increase the overall housing loan eligibility. Lenders often consider the combined income of all borrowers, and the presence of a woman co-borrower can be viewed favourably.
For example, let’s say a couple, Rahul and Priya, want to apply for a home loan. Rahul’s monthly income is ₹80,000, while Priya earns ₹60,000 per month. If they apply for the loan together, with Priya as a co-borrower, their combined income of ₹1,40,000 can make them eligible for a higher loan amount compared to Rahul applying alone.
5. Longer Repayment Tenures
Housing loans for women offer longer repayment tenures. Many banks offer tenures extending up to 30 years, allowing you to spread out your EMIs over a more extended period.
Longer tenures can significantly reduce your monthly instalments, making them more manageable within your budget. However, it’s essential to note that a longer tenure also means paying more interest over the life of the loan.
To determine the ideal tenure for your housing loan, consider factors such as your age, income stability, and financial goals. You can use an online EMI calculator to experiment with different tenures and find the right balance between affordability and total interest paid.
6. Tax Benefits
Owning a home comes with valuable tax benefits, and women can take advantage of these to reduce their tax liability. Under Section 80C of the Income Tax Act, you can claim a deduction of up to ₹1.5 lakh on the principal repayment of your housing loan. Additionally, Section 24b allows a deduction of up to ₹2 lakh on the interest paid on your home loan.
For example, let’s say your annual principal repayment is ₹1 lakh, and you pay ₹1.5 lakh as interest. By claiming these deductions, you can reduce your taxable income by ₹2.5 lakh, potentially saving a significant amount on your income tax.
To maximise your tax benefits, consider consulting a tax professional who can guide you based on your specific financial situation.
Summing Up
Housing loan benefits for women in India have opened up new possibilities for aspiring homeowners. By offering lower interest rates, stamp duty rebates, PMAY benefits, longer repayment tenures, and tax advantages, these initiatives have made homeownership more accessible and affordable for women.
If you’re considering taking a housing loan for women, Airtel Finance can be your trusted partner in this journey. With competitive interest rates, flexible tenures, and a seamless application process through the Airtel Thanks app, Airtel Finance aims to make your dream of owning a home a reality.
Before applying for a housing loan as a woman, be sure to check your credit score and gather all the necessary documents to ensure a smooth process. With the right planning and support from Airtel Finance, you can unlock the doors to your dream home and embark on a fulfilling journey of homeownership.
FAQs
- What is the average interest rate reduction for women on housing loans?
The average interest rate reduction for women on housing loans ranges from 0.05% to 0.1% compared to the standard market rates.
- Can I avail of the PMAY benefit if I’m applying for a housing loan individually?
To avail of the PMAY benefit, the property must be registered in the name of a female member of the household or as a joint ownership with a male member.
- How can I calculate my EMI for a housing loan?
You can easily calculate your EMI for a housing loan using an online EMI calculator. Simply enter the loan amount, interest rate, and tenure to get an instant estimate.
- Is there a maximum limit on the tax deduction for housing loan principal repayment?
Yes, under Section 80C of the Income Tax Act, you can claim a maximum deduction of ₹1.5 lakh on the principal repayment of your housing loan.
- Can I apply for a housing loan with Airtel Finance online?
Yes, you can easily apply for a housing loan with Airtel Finance through the Airtel Thanks app, which offers a seamless and convenient application process.
