Home Loan Benefits for Women in India


Constructing a home used to pose significant challenges, particularly for women, in the past. However, with the introduction of supportive policies and increased financial independence among women, the process has become much more manageable.

Over the past decade, there has been a notable rise in the number of Indian women opting for home loans. This trend signifies their growing financial resilience, independence, and freedom from the obstacles that once hindered them.

With the escalating numbers of women seeking home loans, numerous financial institutions are introducing specialized schemes tailored for them. These schemes offer a range of benefits, including easy financing, expedited approvals, low-interest rates, and enticing add-on offers.

Today, we will delve into these benefits and more in detail.

5 Home Loan Benefits for Women in India

Here are the main benefits available on home loans for woman-

1) Low Interest Rates

The interest rates attached to a home loan play a crucial role in determining its manageability. Higher interest rates pose greater challenges in repayment. However, for women, several financial institutions provide home loans at reduced interest rates, recognizing their credibility and reliability.

This initiative simplifies repayment, bringing women closer to realizing their dream of owning a home.

2) Increased Home Loan Eligibility

Qualifying for a home loan can be more challenging than anticipated, as eligibility depends on several factors, and meeting all requirements may not always be feasible. However, numerous banks and lending institutions have relaxed their stringent criteria for women, making eligibility requirements much more accessible.

3) Tax Benefits

In a home loan application, a woman, as a wife, can join her husband as a co-applicant. This enables both spouses to individually claim tax deductions under Section 80C and Section 24 of the Income Tax Act, 1961.

Additionally, they can benefit from deductions under Section 80EE and 80EEA, although these are exclusively available to first-time homebuyers.

4) Benefit under PMAY

The Pradhan Mantri Awas Yojana (PMAY), an initiative by the government, is a widely recognized credit-linked subsidy scheme (CLSS). This scheme aims to offer affordable housing solutions to the citizens of the nation.

For female applicants, leveraging the PMAY scheme is highly advantageous. This is because it is now obligatory for properties purchased under this scheme to be registered in the name of at least one woman within the family.

Furthermore, if a woman applies for a home loan under this CLSS, she can benefit from interest rate concessions.

5) Lower Stamp Duty

In the process of registering a home, the state government levies a legal tax in the form of a stamp duty. It is levied while purchasing a property, which can be a costly expense. But for women, such stamp duty is around 1% to 2% less.

The Bottom Line

In the past, constructing a house appeared to be an unattainable aspiration. However, with government initiatives and lenient policies from financial institutions, this dream now feels within reach.

With numerous advantages available to women seeking home loans in India, the prospect of owning a home that truly belongs to you has become significantly more accessible.

Therefore, if you're eager to build a home for yourself, don't hesitate to seize the opportunity, lady!

Also Read: Latest RBI Guidelines for Home Loans 2024

Frequently Asked Questions

Ans 1. Advantages and incentives for women in home loans can include lower interest rates, stamp duty discounts, higher loan eligibility, easier access to credit, joint ownership benefits, subsidies, grants, tax deductions, and financial literacy programs.

Ans 2. Since these numbers are rising day by day, many financial institutions are coming up with numerous home loan schemes conscientiously designed for women. From easy finance to quicker approvals, from low-interest rates to exciting add-on offers, women can now avail of varied benefits while getting a home loan.

Ans 3. New SBI Home Loan Interest Rate for Women: Under SBI's "Her Ghar" scheme, home loans are offered to women applicants or first co-applicants who are women, at a concessional interest rate of 9.40% per annum.

Ans 4. You should be an Indian resident. Be at least 21 years when applying for the home loan for women. A maximum of 60 years for salaried women and 65 years for self-employed women at the time when the home loan matures. You should be salaried or self-employed.

Ans 5. It is a one-time small savings scheme introduced by the government for women with a maturity period of two years. A woman or guardian of a girl child can open this account and deposit a maximum amount of Rs.2 lakh. Mahila Samman Savings Certificate offers an interest of 7.5% p.a. on the deposited amount.