With financial independence coming to women, a number of women now understand the importance of owning a property and how this step can be a vital aspect of financial planning. Now, many women are availing a home loan to fulfil the dream of owning a house. Banks and other lending institutions are betting on women customers to expand their home loan portfolio. To lure them, lenders are offering customised home loan emi calculator schemes, lower processing fees and other discounts to women.
Some of the other factors that are contributing to the surge in the number of women home loan borrowers include lower home loan interest rates, tax benefits and lower stamp duty. Let us understand in detail how women would benefit with the help of home loan emi calculator from either banks or Non-Banking Financial Companies (NBFCs).
- Save on Home Loan Interest
Women have a better track record of repaying their loans. That is the reason why banks encourage women to invest in properties and buy new homes. To take it ahead and make this concept materialize, many lending institutions offer a special concession of 0.05% to 1.00% on home loan interest rates.
The above-mentioned difference might appear to be negligible, but according to the Home Loan EMI Calculator, it plays a significant role in considerably reducing the monthly interest payment liability. Also, let us not forget that the money saved is money made. The discount availed can be used for investment or for meeting other financial requirements.
As per the above example, the total amount saved by women home loan borrowers over other applicants is Rs. 60,406. This amount can be used by them for their personal use or invest in other financial schemes like mutual funds.
- Lower Stamp Duty Charges levied on Women
Stamp duty is a compulsory tax that the state government imposes on the property during its sale or transfer. Its rate varies from one state to another. There are some factors on which the stamp duty rate depends such as the status of the property, location of the property, type of property and usage of the property. The stamp duty charges usually vary from 4% to 10% of the property cost and it forms a part of the property cost. Hence even a small concession on the rate can make a huge difference in the property cost.
Many state governments give offer of a concession on stamp duty if the property is registered in the name of a woman. It can be either solo or joint ownership. According to the Home Loan EMI Calculator, the difference in the charges usually ranges from 1% to 2%. This helps in saving a substantial amount while purchasing a house.
- Enjoy Home Loan Tax Benefits
Government provides special benefits for women. All taxpaying women borrowers are eligible to claim home loan tax deductions of up to Rs. 3.5 lakh. Under Section 80C of the Income Tax Act, 1961, borrowers can claim tax deduction of up to Rs. 1.5 lakh on home loan repayment as per the home loan emi calculator. And under Section 24(b) of the Income Tax Act, 1961, borrowers can claim tax deduction of up to Rs. 2 lakh on home loan interest. In addition, there are other additional tax deductions that women can claim.
The above home loan tax benefits can be availed by women even on applying for a home loan jointly with their husbands or other eligible co-applicants. In fact, opting for joint home loans can increase the overall tax benefits. For instance, if a couple has applied for a home loan jointly, he/she can claim tax deduction of Rs 1.5 lakh each on the principal paid and the interest paid under Sections 80C and 24(b) of the I-T Act, respectively. However, it is imperative that the couple ensure that the conveyance deed/ sale deed has the names of both the applicants as the owners of the property.
- Pradhan Mantri Awas Yojna Benefits for Women
Women can avail Pradhan Mantri Awas Yojana – Credit Linked Subsidy (PMAY-CLSS) to fulfil their dreams of home ownership. The government scheme aims to provide “Housing for all” by 2022 through different initiatives, including the Credit Linked Subsidy Scheme. Under CLSS, the government offers a subsidy of up to Rs. 2.67 lakh to eligible applicants on home loan interest rates. The subsidy amount is given upfront on the principal outstanding, thus lowering the interest amount. The benefits under PMAY-CLSS are provided according to the annual income of the family categorised as below:
To encourage home ownership for women residing in urban as well as rural areas, the government provided the following benefits under its PMAY scheme. As per the guidelines of PMAY:
- It is necessary for a family to have at least one woman member registered as the owner of a new house, irrespective of the fact whether she is buying the property
- Senior citizens, including elderly women, would get ground floor accommodation for their convenience.
It is clear women stand to gain immense benefits from various schemes of government as per their home loan emi calculator. Hence it makes sense for women to go for purchasing properties in their names or jointly with their spouse. All these steps are sure to uplift the position of women in the society and lead to their emancipation and empowerment.
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