“Where large sums of money are concerned, it is advisable to trust nobody.” – Agatha Christie
Today, people are sharing inspiring thoughts about women. Talking about the recent achievement of Avani Chaturvedi who became the first Indian woman to fly a fighter jet. Just like her, every woman has a dream which she wants to live. The world has witnessed the impact of women in every field including finances. In fact, women are considered as better financial planners than men.
If one of your dreams is buying a house for yourself, we have mentioned here some benefits you get on housing loans in India.
What benefits do you get on home loans?
Being a woman applicant for housing loans gives you the following advantages:
- Concession on interest rate– A women borrower enjoys a concession of 0.05% in the interest rate from most banks in India. At present, the lowest rate you can get is 8.70% per annum.
- Saving on stamp duty– A concession of 1%-2% is generally applicable. So, on a property worth Rs 60 lakhs, a woman borrower can save around Rs 60,000-1,20,000.
- Saving on Tax– The maximum tax deduction allowed in the principal and interest repayments is Rs1.5 lakh and Rs. 2 lakh, respectively. Women borrowers applying for a home loan along with their husbands can receive the tax deduction in an equal proportion.
Banks offering special rates to women borrowers
Below are the banks and NBFCs that offer concessional interest rates to women home loan applicants giving you the option to pay low per lakh EMIs.
|Banks||Home Loan Interest Rates for Women (per annum)||EMI per lakh|
|State Bank of India (SBI)||8.35%-8.75%||₹858-₹884|
|LIC Housing Finance Limited||8.35% onwards||₹858|
|Bank of India||8.30%||₹855|
How much money do you need for down payment?
Most of the banks and NBFCs give the loan amount up to 80% of the property value. So, if you wish to buy a 2 BHK costing Rs. 40 lakhs in a good location, you may the loan amount up to Rs. 32 lakhs. So, you only need to manage the rest Rs. 8 lakhs which you either have in the form of savings or can save in next 4-5 years through proper financial planning.
You may note these advantages and trust your instinct that you can fulfill your wish!
Happy Women’s Day Ladies!