Many of us dream of becoming homeowners to ensure lifelong financial security. You are safe from the daily hassles of shifting your residence than renting homes. There are many funding options for buying a house in India, and the most popular ones are Home Loans. Apply for them at banks and financial institutions and receive the amount in your Bank Account.
There are special schemes for women Loan borrowers. They benefit from reduced Home Loan interest and can pay it in easy installments. It boosts their confidence and makes them financially independent. They can choose their investment methods to earn income and repay the borrowed amount without facing a financial crunch.
Government schemes
If you have ever bought anything on Loan, you will know that even a slight difference in the interest rates can lead to huge savings. With a reduced interest rate, your monthly EMI amount also reduces simultaneously, thus making your borrowing affordable. Under the government scheme, most banks lowered interest rates for women by 0.05%.
Reduced stamp duty charges
Stamp duty is a part of the property cost, and the reduced interest rate can make a huge difference in lowering stamp duty charges. Most lenders provide 80% to 90% finance on a Housing Loan, with a set percentage of money paid in stamp duty charges. But for women, a concession of 1% to 2% is applicable.
Tax benefits
Both male and female borrowers are eligible for a tax deduction on repayments. The maximum tax deduction permitted in principal and interest repayments is Rs. 1.5 lakh and Rs. 2 lac, respectively, when you apply for a Home Loan. If a woman borrower applies for a Loan with her husband, she can receive a tax deduction in equal measures.
Longer repayment tenures
While male borrowers get a repayment tenure of 20 years to 65 years, for women, it extends to up to 30 years or up to 70 years, whichever is earlier.
Financial tools
Use the EMI calculator to determine the affordability of the installment repayment and the Home Loan interest. It plans your finances and saves for the future. You can easily compare and choose an affordable scheme. Ensure the amount falls within your budget and income capacity. Consider the bank’s lending rate and the maximum amount you get based on your income.
CIBIL Score
Your CIBIL score should be above 700 points to get affordable interest rates and the desired repayment tenure. Repay existing Loans and Credit Card bills to enhance your credit score and eligibility.
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