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Home Loan Benefits for Women in India


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For many women in India, the dream of owning a home has often felt like a distant horizon. But the tide is turning! Recognizing the vital role women play in building strong communities and thriving economies, both government and financial institutions are offering a helping hand. Today, securing a home loan comes with a bouquet of benefits specifically designed to empower women and make their dream of homeownership a reality.

In this article, we will tell you various benefits that women will receive if they purchase a home in their name in India.

Tax Benefits

Women can also benefit from tax breaks when taking out a house loan. The maximum is up to 3.5 lakhs for principle repayment and Section 24 (b) for interest paid under Section 80 C. Lenders can claim a tax deduction of up to Rs 1.5 lakhs under section 80 C and a deduction of up to Rs 2 lakhs under section 24 of the Income-tax Act of 1961. (b).

In addition to the 24 (b) deduction, women can claim an extra Rs 1.5 lakh deduction under Section 80 EEA. This is only relevant to loans approved between April 1, 2019, and March 31, 2021. Women can collect these tax deductions if they file jointly, such as with their spouses or other qualifying co-applicants. Filing jointly can improve their overall deduction advantages because the pair can claim deductions on the principle amount and interest paid separately.

Pradhan Mantri Awas Yojana

The Pradhan Mantri Awas Yojana (PMAY) provides affordable housing to the residents of the country. It is now mandatory that property purchased under this scheme must be registered in the name of at least 1 woman in the family. Not only this, if a woman is applying for a home loan under this CLSS, she can avail of concessions on interest.

Low Interest Rates

Public Sector Banks in India provide relaxation in Rate of Interest to women. Atleast 0.5% lesser ROI is charged from women in India, so this is a win-win situation for women.

Lower Stamp Duty

Stamp duty is a statutory tax levied by the state government on the sale or transfer of property. The rate is determined by various criteria such as the property’s location, condition, usage, and value. It differs from one state to the next.

It often ranges from 4% to 10% of the property’s cost, and because it is a component of the property’s cost, even a minor concession can make a significant impact. For women, such stamp duty is around 1% to 2% less.

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