As women get more empowered with financial freedom, the propensity to secure their livelihood in the form of investing in a home has resulted in a sharp rise in women home buyers in India. Statistics indicate that 30% of home buyers in urban India are women. Favorable interest rates, tax benefits and an increased percentage of savings for women home-buyers have been some of the factors that have contributed to the sharp rise in women purchasers.
Some of the benefits offered to women home purchasers include:
- Lower Stamp Duty Payment
In many States, if a property is bought and registered under the name of a woman, the applicable Stamp Duty is comparatively lower. The applicable Stamp Duty rate tends to vary from State to State. Some examples of places that have adopted the preferential Stamp Duty regime to encourage women buyers include Delhi, Haryana, Madhya Pradesh and Uttar Pradesh.
- Tax benefits
A Tax deduction on the interest of up to Rs. 2 Lakh is applicable within the financial year if the property is self-occupied. If the property has been rented, the entire interest on the home loan can be claimed as a deduction against the Net Rental Value.
- Lower interest rates
Some of the leading banks in India have offered women home purchasers the benefits of levied interest rates on home loans. On average, the interest rate for women home-buyers is lower by 0.25% to 0.50%. There are also other institutions that provide a limited period benefit to women home-buyers on their rate of interest.
- Increased sense of independence
The Narendra Modi Government under their ‘Housing for All’ mission has also launched a scheme to empower women by encouraging either co-ownership or sole ownership of affordable housing.
There are various schemes launched by the Government to encourage women home purchasers.
SBI has launched “HER GHAR”, with an interest rate of 9.50% (EMI RS 841/ lac for a period of 30 years) subject to the following two conditions,
- The Woman should be the sole applicant or one of the co-applicants of the Home Loan, and also.
- The woman should be the sole owner or one of the co-owners of the property to be financed by the Bank.
Various other banks such as ICICI, LIC HOUSING FINANCE, HDFC have launched special loan schemes for women home buyers.
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