Owning a home is a dream for many, providing not just a sense of security but also serving as a long-term investment. On the occasion of International Women’s Day, it’s essential to highlight the financial advantages women can leverage when applying for a home loan. With various incentives from banks, financial institutions, and government schemes, homeownership has become significantly easier for women in India. Here are six major benefits that women can avail themselves of when taking a home loan.

Women applicants, whether applying individually or jointly, often receive a lower interest rate on home loans. Many banks and lenders offer a reduction of 0.05% to 0.10% in interest rates. While this may seem like a minor difference, over a long-term loan, it translates into substantial savings.

For instance, if a borrower takes a loan of ₹30 lakh for 30 years at an 8.75% interest rate, their monthly EMI would be approximately ₹23,601, and the total repayment would amount to ₹84.9 lakh. However, for a woman availing a 0.10% discount with an 8.65% interest rate, the EMI would reduce to ₹23,387, bringing the total repayment down to ₹84 lakh. This means a direct saving of around ₹77,000 over the loan tenure.

Additionally, women applying for joint home loans along with a co-borrower benefit from increased loan eligibility, as the combined income is considered while sanctioning the loan.

Women home loan borrowers can avail themselves of various tax exemptions under the Income Tax Act. Under Section 80C, they can claim a deduction of up to ₹1.5 lakh annually on the principal amount. Additionally, under Section 24(b), they can avail of tax benefits of up to ₹2 lakh per year on the interest paid.

In cases where a woman co-owns the property with a co-borrower, both can claim these tax benefits separately, effectively doubling the tax-saving potential.

Women generally have higher credit scores and are seen as more financially disciplined borrowers. Lenders consider them as low-risk applicants, increasing their chances of home loan approval. Additionally, since women borrowers have a lower default rate, financial institutions readily offer loans to them at competitive rates.

If a woman applies for a joint home loan, her income is also considered for eligibility, further enhancing the chances of securing a higher loan amount at better terms.

Many Indian states offer lower stamp duty rates for properties registered in a woman’s name, typically providing a 1-2% concession. This reduction translates into significant savings on the overall property cost.

For instance, if a state has a standard stamp duty of 7% and offers a 2% concession for women, purchasing a property worth ₹50 lakh would mean a direct saving of ₹1 lakh. This initiative not only eases the financial burden on women buyers but also encourages them to invest in real estate and achieve financial independence.

Apart from stamp duty concessions, several government housing schemes prioritize women applicants. Under the Pradhan Mantri Awas Yojana (PMAY), women receive additional benefits, including mandatory property ownership in their name for certain subsidy categories.

Furthermore, under the Credit Linked Subsidy Scheme (CLSS), women borrowers can avail of interest subsidies of up to 6.5% on home loans, making housing more affordable.

Banks and financial institutions are increasingly focusing on empowering women through home loan benefits, ensuring they gain financial independence. Owning a home enhances a woman’s financial security, making her more self-reliant and reducing future financial uncertainties.

With the availability of lower interest rates, tax benefits, government subsidies, and stamp duty concessions, homeownership for women has become more accessible and financially viable. More women are now investing in real estate, securing their financial future, and taking a significant step toward independence and empowerment.