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Women in India enjoy benefits on home loans like lower interest rates, higher loan eligibility, reduced stamp duty, tax benefits, priority in housing schemes, and empowerment.
International Women’s Day
Owning a home is a dream come true, and for women in India, achieving this milestone has become much easier. With banks, financial institutions and government initiatives encouraging home ownership among women, they enjoy several benefits when availing home loans. Here are 6 key benefits that make loans more attractive for women in India –
1- Lowered Rates of Interest
Irrespective of whether they apply as a co-borrower or individually, most lenders offer a concession of 0.05% – 0.10% on interest rates for women borrowers. While this may look like a small difference, it can result in substantial savings in the long term. Let us understand this with the help of the following example.
Assuming one takes a ₹30 lakh home loan for 30 years at 8.75% interest rate, the monthly EMI would be around ₹23,601, bringing the total repayment amount to approximately ₹84.9 lakh. However, with a reduced interest rate of 8.65%, the EMI decreases to ₹23,387, lowering the total repayment to ₹84 lakh. This 0.10% reduction in interest rate results in savings of approximately ₹77000 over the loan tenure. If a woman applies for a loan as a co-borrower, the combined income could increase loan eligibility and provide flexibility to opt for a higher loan amount.
2- Increased Tax Benefits
Women borrowers can avail income tax deductions under Sections 80(C) and 24 (b) of the Income Tax Act, reducing their taxable income. A woman borrower can claim a deduction of up to ₹1.5 lakh per annum on the principal amount. Additionally, under Section 24(b), she can claim tax deduction of up to ₹2 lakh per annum on the interest paid for a house that is self-occupied. In case the property is co-owned, both borrower and co-borrower can claim deductions individually, doubling the tax benefits.
3- Higher Loan Eligibility
Interestingly, women are often considered more creditworthy by lenders for their more disciplined approach towards savings and sound financial planning. Also, women tend to have lower loan default rates compared to their male counterparts which encourages lenders to offer home loans to them easily.
If a woman has a good credit score along with a stable income, she can use it to negotiate better loan terms. And if she applies for a joint home loan, the combined income of both borrowers could further improve loan eligibility, empowering them to purchase better property.
4- Reduced Stamp Duty Charges
Several state governments offer lower stamp duty rates—usually 1% to 2% lower—if the property is registered in a woman’s name. This translates to substantial savings during property registration. This incentive makes homeownership more affordable, reduces financial burden, and encourages property ownership among women, enhancing their financial security and independence.
5 – Priority In Government Housing Schemes
Alongside reduced stamp duties, women often receive priority benefits in government housing schemes. Women home loan borrowers in India benefit significantly from government-backed housing schemes like Pradhan Mantri Awas Yojana (PMAY). Under the Credit-Linked Subsidy Scheme (CLSS), women get interest subsidies of up to 6.5% on home loans. Many schemes mandate or incentivize joint ownership with women, promoting financial security and independence.
7 – Enhanced Security and Empowerment For Women
The government’s initiatives to support women by encouraging banks and financial institutions to provide them with financial assistance will only make home ownership easier and affordable for women. Owning property strengthens a woman’s financial independence and provides security.
With such benefits, more women in India are becoming homeowners, fostering financial empowerment and ensuring long-term security.
This is authored by Atul Monga – CEO & Co-Founder, BASIC Home Loan
The views expressed in this article are those of the author and do not represent the stand of this publication.
