In India, the landscape of homeownership is evolving, with more women taking the reins of their financial futures. Today, women are not only breaking barriers in the workplace but also making significant strides in real estate. With growing financial independence, favourable market conditions, and government incentives specifically designed for women, there has never been a better time for them to invest in a home. This article explores why now is the perfect moment for women in India to take the leap into homeownership, securing their financial stability.
Benefits for women homebuyers in India
Women homebuyers in India enjoy a range of benefits that make investing in property an attractive and financially sound decision. These advantages, tailored specifically for women, are designed to encourage homeownership and provide long-term financial security.
Lower home loan interest rates
Banks and financial institutions often offer lower interest rates on home loans for women borrowers. Since home loans often extend to 20-30 years, lower rates can lead to substantial savings over the loan tenure. Many banks have also introduced several women-friendly home loan schemes like ‘Her Ghar’ by the State Bank of India (SBI) and ‘Mahila Power’ by HDFC Bank. This reduced interest rate makes homeownership more affordable and accessible for women. Here are some examples of banks providing women with lower home loan interest rates:
- HDFC Bank: Provides interest rates starting from 8.95% for both salaried and self-employed women.
- Axis Bank: Offers reduced rates starting at 8.6% for women, regardless of their employment status.
- Bank of Baroda: Features competitive rates beginning at 8.6% for female borrowers.
- State Bank of India (SBI): Grants a concession on home loan rates for women, typically starting from 8.9%.
- LIC Housing Finance: Provides one of the lowest rates for women, beginning at 8.65% per annum, along with minimal processing fees.
See also: Single woman applying for a home loan? Here’s what to expect
Stamp duty concessions
In many Indian states, women are entitled to reduced stamp duty charges when registering property in their names. This concession can range from 1% to 2% lower than the standard rates, resulting in significant savings. Here are a few examples of reduced stamp duty rates for women homebuyers in different states:
- In Delhi, women pay a 4% stamp duty, whereas men pay 6%.
- Haryana offers a reduced stamp duty of 5% for women, compared to the standard 7%.
- In Himachal Pradesh, women are charged 4% stamp duty, while men pay 6%.
- Rajasthan and Punjab both offer a 1% reduction, with women paying 5% instead of the usual 6%.
- Uttar Pradesh gives a 1% concession, making the stamp duty 6% for women compared to 7% for men.
- In Maharashtra, the stamp duty is 4% for women, while men pay 5%.
For high-value properties, these reductions can lead to significant savings, encouraging more women to invest in real estate.
Tax benefits
Women homebuyers can also take advantage of various tax benefits. Under Section 80C of the Income Tax Act, first-time women homebuyers can claim deductions of up to Rs 1.5 lakh on the principal repayment of their home loan. Additionally, under Section 24(b), women can claim deductions of up to Rs 2 lakh on the interest paid on a home loan for a self-occupied property. Furthermore, if a married couple jointly owns a home but has separate incomes, both the husband and wife can individually claim a tax deduction. These tax benefits reduce the overall cost of homeownership and make it a tax-efficient investment. Â
Priority in government housing schemes
The Indian government has introduced several housing schemes that prioritise women homebuyers. For instance, under the Pradhan Mantri Awas Yojana (PMAY), the government mandates that houses purchased under the scheme be registered in the name of at least one female member of the household. This initiative aims to empower women by ensuring they have a stake in family assets. Moreover, under PMAY, women who belong to the economically weaker section (EWS) with an annual income of up to Rs 3 lakh or the lower income group (LIG) can benefit from an interest subsidy of approximately 6.5% on a loan amount of up to Rs 6 lakh. Additionally, first-time homebuyers can receive a subsidy of up to Rs 2.35 lakh through the Central Government’s PMAY Credit Linked Subsidy Scheme (CLSS).
Women-specific home loan advantages
Certain banks and financial institutions provide home loan benefits tailored specifically for women. These may include lower interest rates, extended repayment tenures, higher loan-to-value ratios and flexible repayment options. For instance, some banks offer women homebuyers a repayment tenure of up to 30 years, while others may provide loans covering up to 90% of the property’s value, compared to a maximum of 80% for male borrowers. These features are designed to make property ownership more accessible and affordable for women.
Advantages of joint ownership
One of the key benefits for women homebuyers in India is the financial advantage of joint ownership. When a property is co-owned by a woman, either with her spouse or another family member, both owners can enjoy several perks, including:
- Stamp duty concessions: As mentioned above, some states offer reduced stamp duty rates if a woman is listed as a co-owner. This can lead to substantial savings during property registration.
- Income tax benefits: Under Section 80C of the Income Tax Act, both co-owners can claim tax deductions on the principal repayment of a home loan, up to Rs 1.5 lakh each. Additionally, under Section 24(b), both can also claim deductions on the interest paid, up to Rs 2 lakh each. This doubles the potential tax savings for families.
- Loan eligibility and lower interest rates: When women are included as co-owners, it can improve the home loan eligibility due to combined incomes. Many banks and financial institutions also offer lower interest rates on home loans when a woman is a co-borrower, which reduces the overall financial burden.
By opting for joint ownership, women can maximise the financial benefits of homeownership while securing a long-term investment.
Financial security and empowerment
Purchasing a home provides women with long-term financial security and fosters empowerment. In India, owning property is not only seen as an investment but also as a significant step toward financial independence. Here’s how homeownership enhances financial security and empowerment for women:
- Asset creation: Real estate is a tangible and appreciating asset. For women, owning property secures a valuable asset that can be passed down through generations or leveraged for financial stability in times of need.
- Independence and control: Owning a home gives women direct control over their finances, reducing dependence on others for housing or financial decisions. It is a step toward greater autonomy, especially in situations like marriage, inheritance, or legal matters.
- Access to credit: Property ownership can improve a woman’s creditworthiness, making it easier to obtain loans for future investments or business ventures. It also enhances her ability to negotiate better financial terms with lenders.
- Social empowerment: In many parts of India, women who own property are viewed as more socially empowered. Homeownership helps challenge traditional norms and provides women with a sense of pride, accomplishment, and standing in the community.
Key considerations for women homebuyers
While purchasing a home is a significant milestone, it requires careful planning and consideration, especially for women. Here are some key factors women should keep in mind when buying a property in India:
Financial planning
Before embarking on the homebuying journey, it’s essential to assess your financial situation. This includes evaluating your savings, understanding your loan eligibility, and determining how much you can afford to spend on a property. Women should also consider their future financial goals, such as retirement planning or education expenses, and ensure that homeownership aligns with these objectives.
Location and connectivity
The location of the property plays a crucial role in its long-term value and convenience. Women homebuyers should prioritise safety, proximity to essential services (such as schools and healthcare), and connectivity to workplaces and public transportation. Additionally, researching the neighbourhood’s development prospects can help ensure the property’s value appreciates over time.
Legal due diligence
Conducting thorough legal checks is vital to avoid any disputes or complications in the future. Women should ensure that the property has a clear title, all necessary approvals, and is free from any legal encumbrances. It’s advisable to seek legal counsel to verify the authenticity of documents and to understand the terms and conditions of the sale agreement.
Loan and interest rate comparison
Although women are often eligible for lower interest rates on home loans, it’s important to compare offers from different lenders. Consider the loan tenure, EMI amounts, and any additional charges associated with the loan. Opting for a home loan insurance policy is also advisable to secure your investment in case of unforeseen circumstances.
Safety and security features
For women, especially those living alone, safety and security are paramount considerations. When choosing a property, look for features such as 24/7 security, CCTV surveillance and well-lit surroundings. Additionally, gated communities or apartments with security personnel can provide an added layer of protection.
Resale value and investment potential
While buying a home is often driven by personal needs, it’s wise to consider the property’s resale value and investment potential. Research the area’s real estate trends and potential for future growth. A property in a developing locality with planned infrastructure projects may offer better returns in the long run.
Long-term maintenance costs
Owning a home comes with ongoing maintenance costs that can impact your finances. Women should factor in these expenses when budgeting for a property. Consider the age of the building, the quality of construction, and the maintenance fees if buying an apartment. Properties in well-maintained societies with efficient management may incur lower maintenance costs over time.
Emotional and social support
Homebuying can be a complex and emotionally taxing process. It’s important for women to have a support system in place, whether it’s family, friends, or professional advisors. Discussing your plans with trusted individuals can provide valuable insights and emotional support throughout the journey.
Housing.com POV
As India witnesses a transformative shift in the real estate landscape, the timing has never been more advantageous for women to invest in homeownership. Women are increasingly stepping into roles of financial authority, with greater access to resources and support tailored to their needs. The current market conditions, coupled with government incentives and special loan benefits, provide a unique opportunity for women to secure their financial futures through property ownership. From lower interest rates and tax benefits to stamp duty concessions and priority in housing schemes, the advantages available make homebuying an appealing and financially sound decision. By considering essential factors like financial planning, location, legal due diligence, and safety, women can make informed choices that align with their long-term goals.
FAQs
Can a single woman buy a house in India?
Yes, a single woman can buy a house in India. She is eligible for a home loan and can benefit from various financial incentives and government schemes tailored for women homebuyers. The process is similar to that for any other individual, provided she meets the financial requirements.
Can a housewife buy a house?
Yes, a housewife can buy a house in India. If she has a source of income or a co-borrower with a stable income, she can secure a home loan. Many financial institutions offer loans to housewives, especially if they have strong credit and financial backing.
How much loan can a woman get?
The loan amount a woman can get depends on her income, credit score, and repayment capacity. Generally, women can secure home loans covering up to 80-90% of the property's value. Some banks offer higher loan amounts and better terms for women borrowers.
Does co-ownership improve home loan eligibility?
Yes, co-ownership can improve home loan eligibility. When a woman co-owns a property with another person, their combined income and credit profiles are considered, which can enhance the loan amount and terms. Co-ownership also increases the overall repayment capacity.
What difficulties do women homebuyers face in India?
Women homebuyers in India may face challenges such as lower income levels, societal biases, and insufficient financial literacy. Additionally, navigating legal processes and securing loans can be complicated without proper guidance, especially for those without a strong financial background.
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