5 Best Ways You Can Be Benefited From Home Loans
Women in India are becoming more financially independent, and they are weighing in on major life decisions such as buying a home for their families. To encourage more women to come forward and own their property, there are various housing loan advantages and benefits of home loan for womens imposed by financial institutions.
There are several government of India schemes that work in favor of home loans for womens. Here are some of the best advantages and benefits that a woman gets in a housing loan.
Tax Benefits for Home Loan for Womens
There are special schemes and housing loans designed for women. These housing loans make it very easy for women to afford their new property or plot of land. In comparison to a normal housing loan, women’s housing loans offered high tax benefits. This allows women to save a significant amount of money when filing their income tax returns each year. loan principal amounts and rates of interest are subject to home loan tax benefits. If you opt for a woman’s home loan, the tax deduction under scheme 80C is always applicable to the entire loan amount that you have taken. The higher tax proportion or percentage allows you to save every year on taxation. The total amount of interest that you pay on your existing housing loan can be easily recovered with the help of tax savings. Exempted taxes and deductions will decrease the percentage of your income tax returns.
Higher housing loan tenure
Housing loans for women are designed in such a manner that it becomes easy for them to repay the loan without any difficulty. With a longer housing loan, With tenure, the monthly installment always becomes low. This makes it easy for women to pay the monthly installment without feeling any financial crisis or burden.
Therefore, in comparison to normal housing loans, women’s home loans are made for smooth repayment. If the average loan term in housing loans is 15 to 20 years, home loan for womens can come with a tenure of 20 to 35 years. The longer the loan term is, the more suitable it is for women to handle their finances.
Low eligibility criteria
Housing loans are high-value loans, which include a lot of risk regarding non-payment or default. Loan providers like banks and non-banking financial institutions impose high credit eligibility criteria standards for housing loan approval. After checking all the criteria, the housing loan is approved by the financial institutions. However, if you check a woman’s home loan, the eligibility criteria imposed by financial institutions are comparatively less. This means the credit eligibility requirements will not be as high as they are for a normal housing loan.
The process of approval for women’s housing loans is very smooth and easy to meet. The approval rate of women’s housing loans is very high. Various financial institutions and government schemes offer easy approval rates on home loan for womens to encourage them to become self-sufficient.
High value or loan sanction amount
The general rule of housing loans that a maximum of 90% of the property cost approve as a housing loan amount. It applies to all kinds of housing loans in India. However, under government schemes and non-banking financial institutions, the loan value can be more than 90% in the case of women’s housing loans. This done to eradicate all possibilities of arranging a heavy down payment amount. Many women do not come forward to buy their property just because of the high down payment amount.
Therefore, to encourage such women to come forward and buy their property, the sanctioned amount is always high. If the woman can fulfill their eligibility criteria. They can even get up to 95% of the total property cost as a housing loan. In that case, they only have to arrange 5% of the down payment. This eases up the entire borrowing experience without burdening women with a high down payment amount.
Lower stamp duty
For women’s housing loans, the stamp duty is very affordable in comparison to normal housing loans. The stamp duties are always 2 to 3% cheaper in comparison to a normal home loan. If the property registered under the name of a woman, the stamp duty will always be very affordable. This low stamp duty rate is not applicable if the homeowner is a male. Though 1%-2% may appear insignificant. When the whole cost of the property considered and 1%-2% of that calculated, the amount saved significant. This is one of the best privileges that you can enjoy as a woman when you decide to avail a benefits of housing loan for women in your name and identity.