Women's Day: Here's how much a woman can save on house loans

Moreover, banks offer special interest rates and features for women applying for home loans.

Women are liable for lower interest rate on home loans. Photo: Pixabay

Buying a home is one of the single biggest event in the lifetime of an Indian.

With interest rates coming down because of massive deposits garnered by banks due to demonetisation, banks admit that queries for home loans have increased.

Moreover, banks offer special interest rates and features for women applying for home loans.

We take you through the list.

Lower Interest Rates

Women are liable for lower interest rate on home loans. Home loans are invariably in large amounts for a longer duration. So, if the interest rate is on the higher side, your pockets gets pinched more.

A woman can get a concession of 0.05% in the interest rate from most of the banks in India.

Speaking with Zeebiz, Rishi Mehra, CEO of Wishfin.com (earlier knows as Deal4Loans), said, "A slight difference in the interest rate can reduce the flow of interest outgo substantially in a period of 20-30 years. In addition, the monthly installment will also come down."

For instance, the loan amount is Rs 50 lakh and the tenure is 20 years, here's how much men and women will save:

Clearly, from the above table, women will save around Rs 38,000 as compared to male applicants!

Reduction in Stamp Duty

According to Mehra, stamp duty does form the part of the property cost. And a difference of few percentage can make a huge difference in your home ownership cost. The lenders finance a home loan at about 80%-90% of the property cost.

As far as stamp duty goes, it differs from one state to another. Particularly, when women buy a property, the stamp duty generally remains lower. A concession of 1%-2% is generally applicable. So, on a property worth Rs 60 lakh, a woman borrower can save around Rs 60,000-1,20,000.

Tax Benefits

Like the male counterparts, women borrowers are also be eligible for a tax deduction on the home loan repayments. The maximum tax deduction allowed in the principal and interest repayments is Rs 1.5 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, Mehra added.

TAGS: