Posted on March 7, 2022 by Sugee Group
Women in India are working towards becoming financially independent & accomplishing their dreams. This also involves participating and managing the house right from purchasing the property to running it. The journey of women from homemakers to homeowners is being witnessed in the real estate market. When it comes to investment, a recent study by Economic Times revealed that about 42% of women choose real estate as an investment asset class, 30% prefer fixed deposits, and surprisingly, only 17% were interested in gold.
There are multiple benefits that are designed for women to encourage women home ownership.
1. Increased home loan eligibility
Most of the Indian home buyers opt for home loans to achieve their dream of owning a home. Home loan eligibility for Banks & NBFCs is highly dependent on the income of the applicant along with other things. If the female is a co-owner of the property and a working member, her earnings may help in increased loan rates as both applicants’ incomes are taken into consideration.
Several schemes are formed for if a woman wishes to buy a home in her name, ‘Her Ghar’ scheme by SBI, ‘Women Power’ by HDFC, and Mahila Awas loan are some schemes that benefit women who are seeking home loans with discounted interest rates besides other lucrative offers.
2. Tax benefits
Both men and women are privileged to a tax deduction on interest paid up to Rs 2 lakh on loans served for the purchase and construction of homes. If the land is acquired by a married couple in their name, where the wife is earning, then both of them can claim tax deductions individually. Under the newly enforced 80EEA Act in Maharashtra, if a house is obtained in the monetary year of April 2019-March 2020 under Rs. 45 lacs, supplement deduction of Rs. 1.5 lacs can be committed.
3. A partial waiver on stamp duty
The Indian States implies less stamp duty for women homebuyers compared to those for men. Every state has a distinctive percentage of stamp duty for females. For example, Rajasthan and Maharashtra offer a 1% reduction while Delhi and Haryana offer a 2% reduction in the stamp duty payable for women. This is irrespective of the fact whether the woman is a single or mutual owner of the property.
4. Benefits under PMAY
Under the Pradhan Mantri Awas Yojana (PMAY), where a woman holds the ownership of the house, the government provides a subsidy up to a maximum of Rs 2.67 lakh irrespective of the marital status. A female co-applicant is not obligatory while applying for a home loan under PMAY in the MIG 1 or MIG 2 category. But in the case of the EWS and LIG category, women must be the co-owner of the property being bought using the PMAY home loan. This policy is applicable only for newly purchased houses under the scheme and not for houses that have been built on a prevailing piece of land or for repairs & renovation work of an existing house.
5. Additional co-owner benefits
When the co-owner or the owner of the home is a woman and in any case, there might be a situation where there is a delay or inability to repay the loan, the bank or the government official is not permitted to take that co-owned home for recovery.
In conclusion, if a woman is looking to own a property, this is the right time. The benefits are designed to support the decision and empower women to contribute financially and independently as well.
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