How Can a Woman Home Loan Borrower Enjoy the Lowest EMIs?

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25 MAY, 2021

Women, while scaling the ladder of professional success, are also fulfilling their financial goals independently. Purchasing a home is one of them. And why not? After all, lenders and the government have repeatedly encouraged women to invest in house property by providing women specific schemes. There are many offers like lower interest rate, simpler eligibility criteria, favorable terms and conditions for women to that empower them to become homeowners.

If you have been planning to avail a home loan, these benefits can help you enjoy low EMIs on your home loan and make your home more affordable.

Lower Interest Rates
Usually, the lenders consider women reliable borrowers than men, who are unlikely to default on loan. This is why, to make houses affordable for women borrowers, many financial institutions provide home loans at a lower interest rate. While the difference in the interest rates could be of mere 0.5% to 0.75%, in the long term it can significantly reduce the EMIs/ overall loan amount. Enquire about the concessional interest rates from the lender when you avail a home loan.

Pradhan Mantri Awas Yojana Benefit
You can take the benefit of government schemes to get a cheaper loan and lower EMIs. Often Government housing schemes aim at women empowerment and encourage women participation in real estate investment. For example, for a family to avail the subsidy benefit under the Pradhan Mantri Awas Yojana, it is mandatory for a woman to be the owner or co-owner of the house property. Under this credit linked subsidy scheme, you can avail a subsidy on interest paid on the home loan. The amount of subsidy would depend on the category you belong to - Economically Weaker Section (EWS), Lower Income Group (LIG) or Middle Income Group (MIG). You can avail a home loan under this scheme for up to 20 years. You can avail a subsidy of up to Rs 2.67 lakh through PMAY on your home loan.

Tax benefits
Home loans can also help you avail tax benefits. You can claim a deduction of up to Rs 1.5 lakh on repayment of the principal amount and Rs 2 lakh on the repayment of interest under the Income Tax Act, 1961. If you take a joint loan, you and your co-applicant are eligible to claim this deduction individually.

Lower Stamp Duty
As a woman borrower, you can enjoy lower rates on stamp duty as compared to male borrowers. Some states offer concessions in stamp duty for women. For example, in Delhi, the stamp duty for men and women is 6% and 4% of the property value, respectively. This benefit is also available when women are co-owners of the property. Similarly, many other states like Bihar, Haryana, Punjab, Maharashtra, Orissa and Uttar Pradesh have concessions in stamp duty for women borrowers. If you belong to these states or wish to buy a property here, you can avail the benefit of concessional stamp duty, which can be 0.5% to 3% lower than that offered to men. While this might not lower the EMI, it certainly affects the overall cost of ownership of the property.

You can calculate the EMI through an EMI calculator online to decide on a tenure that is comfortable for you. You can also utilize the benefits offered by government housing schemes that support and facilitate women borrowers. In addition, to lower your EMIs, you can opt for longer tenures. With these facilities and support from the Government, you can easily buy your dream home.

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