Thanks to the increasing rate of working women, and the Central Government’s consideration towards females, several new schemes are launched daily. These schemes, such as Home Improvement Loans, are specially curated for homemakers and working women. They revolve around banking, loan systems, investments, and savings.
Such measures have empowered and encouraged women to purchase houses or refurbish their existing spaces without using their hard-earned savings. Women get extra benefits when they apply for “Home Loans for Women “or Home Improvement Loans (also known as Home Renovation Loans). Here is a comprehensive overview of how women enjoy their financial freedom with easy loan access in today’s world.
8 Ways Women Can Benefit from Home Loans or Home Improvement Loans
Here are eight ways in which women can enjoy the benefits they receive from applying for Home or Home Renovation Loans:
Lower Rate of Interest
Home Renovation Loan or Home Loan interest rate usually depend on the Marginal Cost of Funds based Lending Rate (MCLR), macroeconomic factors and credit rating score, age, employment, income, and financial health of the applicant, etc. For women applicants, the interest rates are slashed by 0.05% – 0.1%, which varies from one financial organization to another. This further decreases their monthly EMI. It is a great advantage to all female loan applicants.
Simple Eligibility Criteria
Women have to follow simple criteria, documentation, and loan application procedure. Usually, a representative is appointed for one-to-one support for the women loan applicant to avoid trouble or inconvenience.
Doorstep service and impeccable customer support are also at their disposal 24/7. Although the same is available for their male counterparts, women are given special treatment when applying for Home or Home Renovation Loans.
Higher Loan Amount
The loan amount depends on various factors like the protocols followed by the financial institution and the woman’s age, employment, and income. Several Home Loan providers provide loans for women starting as low as Rs 2 lakh and extending up to Rs 10 crore, depending on their credibility and financial health.
Longer Loan Tenure
Under normal circumstances, many financial institutions extend the loan tenure to 25 years or till the eligible borrower becomes 60-65 years old. However, for women applicants, the loan tenure is extended up to 30 years or until she turns 60-65 years old, whichever happens first.
Low Stamp Duty
It varies from state to state, but a woman’s stamp duty charges are lower when the property is purchased in her name. Stamp duty charges are a necessary expense associated with Home Loan or Home Renovation Loan. For women, it is generally much lower.
Higher Tax Deductions
If a woman is applying for a Home Loan for the first time, they are eligible to claim tax deductions of Rs 50000 under section 80EE of the Income Tax Act. It is available on the Principal amount. There are other tax deductions also available under the same section.
Joint Home Loan Benefits
If both husband and wife opt for a Joint Home Loan or Home Renovation Loan, they benefit from lower interest, higher amount, and longer tenure. Even the fees of applying for such loans are nominal.
Participate in Government Schemes
Women can participate in government schemes like Pradhan Mantri Awas Yojana (PMAY). If entering into a single Home Loan for Women or a Joint Home Loan, you get preference and a higher interest subsidy. However, it depends on the Home Loan scheme and eligibility criteria set by the lending financial institution or government.
These were some of the benefits women are eligible for if they apply for Home Loans or Home Improvement Loans. Women are becoming financially independent today. Thus, several financial institutions offer customized loan plans for them to make the process hassle-free, stress-free, and convenient.
As a working woman or a homemaker, you can also get into a Joint Home Loan account and enjoy the same benefits, simultaneously leveraging some of them with your partner as well! So make the most of this opportunity, make informed financial decisions, and fulfil your dream of owning your beautiful home!