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Why Is a Women’s Home Loan the Perfect Financial Solution for Empowering Women?

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Home Loan

Women’s home loans are typically labelled to be designed as loans for servicing women clients by dishonouring the usual loan rates. In general, the interest rate is 8.4%, although it varies across various financial institutions, depending on the prevailing government rates and economic stability.

More and more women are gaining financial independence in India. Buying a house has become one aspect of this journey. These mortgages cater to low-income women, offering them better terms in the form of reduced interest rates, increased loan eligibility, and tax advantages.

Therefore, a women’s home loan is an ideal financial means through which women can retain their economic independence.

What exactly are women’s home loans?

A women home loan is a type of housing loan for women who are in need of funds. This especially happens in cases where they are planning or already have purchased real estate property to strengthen their financial base.

Some features of women’s home loans are:

  • Usually 0.05% to 0.1% lower compared to regular home loan rates
  • Tenures vary from 5 years to 30 years

Based on the female borrower’s income level and credit score, among other factors, this kind of loan offers women higher loan eligibility than that offered to men by the same bank.

Why should females opt for home loans for women?

  • The main reason why women home loans are game-changers is that they save money in terms of interest.
  • Women property buyers, therefore, save at least 1% to 2% since most states have reduced the stamp duty charged on properties registered under a woman’s name.
  • It improves women’s financial independence. Moreover, ownership of property secures an economic future.
  • It is motivating for them to engage in wealth management as well as property creation if they have their own homes or real estate.
  • The tax benefits attached to women’s home loans make the home loan affordable. Lower interest rates and taxation incentives help lower costs.
  • These loans are a step towards closing the gender gap in property ownership.

Women can claim tax deductions in the following ways:

  • ₹1,50,000 on principal repayments (Section 80C of the Income Tax Act, 1961 in India).
  • ₹2,00,000 on interest repayments (Section 24b of the Income Tax Act, 1961 in India).

Side Note –

According to a report by SBI, around 30% of home loans in urban areas are taken by women.

Pro tip –

Use an online tax saving calculator to calculate how much tax you save.

Steps to acquire a home loan for women

The following are the steps women should go through to acquire such a loan. The process of getting a loan is quite simple:

  1. Check your eligibility — Find out if you meet their requirements, which could be about income, a credit score that should at least amount to 750 and existing loans.
  1. Choose the best lender — Compare offers from banks like SBI, HDFC and ICICI based on their competitive interest rates plus other advantages they may have.
  1. Prepare the documents — The documents you will need are based on specific banks, but always include the following:

            Proof of identity and address — These would include:

  • Pay slips or IT returns are used to show income levels.
  • Property papers.
  1. Apply for this loan — The application process is done either online or physically at the bank’s branch. After the approval, the amount of the loan granted can be paid directly by the lender to the seller.

Why women need urgent tax planning

Tax benefits associated with home loans make them cheaper. Use an online tax saving calculator to help you know how much tax deductions you are likely to make from your earnings and improve financial planning. 

It will enable users to see the real interest costs saved over time so they can budget properly.

The bottom line: Empowerment through property ownership

When you own an asset that appreciates in value every day, you’re in control of your life and destiny. With low interest rates and home purchase incentives, women have found their financial salvation. 

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