If you are a Woman Home Loan Borrower, you will Enjoy these Benefits
By Anupama Deshpande | Sep 10, 2018

Owning a home is a dream of majority of people in India. It is considered a long term financial objective of a person's life. Buying a home has become easy in India as there are a lot of home loan lenders available in India who offer a home loan at very low interest rate, longer tenure & with minimal documentation.

Home loan can also be availed in the name of woman. There are multiple benefits which are offered to a woman home loan borrower. Experts believe that it is a good idea to buy a home in the name of one's wife or in co-ownership with her. Buying a home in the name of woman is more beneficial if she is having a separate source of income as she gets tax rebate too, if she applies for a home loan either singly or in co-ownership.

In India, successive governments have always been introducing policies to encourage women in taking interest in investments particularly in real estate. That is the reason why it makes financial sense to register a property in a woman's name.

In order to motivate Indian women to make real estate investments in their names, banks, housing finance companies and financial institutes are also offering lending benefits as explained below:

Women borrowers of home loan are offered lower interest rate than that of men. Most of the lenders are offering a discount of 0.05% on the interest rate for women borrower in present days.

This difference in interest rate may look very small in percentage terms but in reality it make huge difference on account of interest saved during full term of home loan as the tenure of home loan is very large as compared to other loans i.e. home loan tenure is between 20 to 30 years.

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If you are a working woman having separate income which is taxable then you will get income tax rebate too. You are eligible to get tax rebate of repaying principal as well as interest.

The maximum tax rebate allowed in the principal repayment and interest repayment is Rs1.50 lakhs and Rs2 lakhs, respectively.

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Home loans applied by women have less chances of being rejected, as compared to their male applicants. The reason behind it is that women are considered to be more regular in replaying the loans.

Every home buyer needs to pay stamp duty which is different in different states of India. Majority of Indian States offer lower stamp duty rates for a woman who is buying a house property wither as a sole buyer or as a co-owner.

Such charges may be 1% to 2% lower than the rate applicable to male counterpart. For example in Delhi, woman pays 4% stamp duty while man pays 6% & in Rajasthan, woman pays 4% while man pays 5% stamp duty.

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