A woman can get more loans from banks.
In India, it has been seen that property ownership has traditionally been in the name of the male member of the family. But in the present times, this has started to change. In today’s time, the number of working women in India has increased significantly. This is the reason that being financially self-reliant and capable, most women today are buying property in their own name. When women buy property in their own name or jointly, the family gets many other benefits. Let us discuss here the advantages of buying property in the name of a woman and the benefits from the government.
Benefit in interest rate
The interest rate you pay on a home loan to buy a house is very important. Saving a few percent on the interest rate can save you lakhs of rupees in the long run. Women get this benefit on home loan interest rates. Interest rates are lower for them. It can be as low as one percent. The benefits of low interest can be understood by an example.
Suppose there is a home loan of Rs 50 lakh on which the interest rate is 9 percent for men and 8 percent for women. The loan period is 20 years. Now if we calculate this, then the monthly installment at 9% interest rate will be around Rs 48,871. In this way, the total interest paid on this basis in 20 years will be Rs 57,29,040. But when calculated at 8% interest rate, the monthly installment comes to around Rs 46,096. The total interest to be paid in 20 years will be Rs 40,65,504. In this way, by reducing the interest rate by just 1%, you can save Rs 10,73,536 in 20 years.
Saving on stamp duty
Stamp duty is lower for women buyers in most states in India. According to ICICI Direct, for example, there is a difference of about 2% in stamp duty in Delhi and Himachal Pradesh. In Jharkhand, women have to pay only Rs 1 as stamp duty. Stamp duty is levied on the purchase amount. In such a situation, if you buy a property worth Rs 50 lakh, then saving one percent matters a lot.
Eligibility for a loan
A woman can avail higher loan amount from banks. The loan amount is determined based on the salary of the buyer. If the woman is a co-buyer, the salaries of both the partners are added together and the eligibility automatically increases.
Eligibility in Pradhan Mantri Awas Yojana
Pradhan Mantri Awas Yojana (PMAY) has been launched to help women in India buy property easily. According to the rules of this scheme, there should be at least one female owner of the said property, and a subsidy of up to Rs 2.67 lakh is given. The central government is working towards the upliftment of the economically weaker sections and low-income groups of the society by giving 6.5% interest subsidy to women of these sections. Any woman can avail the benefits of PMAY regardless of her marital status.
Tax benefits are also available
Tax deductions are the same for men and women, but joint ownership allows claiming separate tax deductions. According to ICICI Direct, first-time homebuyers can claim Rs 50,000 on the principal amount paid in addition to other claims under Section 80EE.
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