It is a staple of Indian society to leave financial decisions pertaining to the family in the hands of men. Homemakers and even working women rarely get involved in family planning matters such as investments, taxation, insurance etc.
Times are changing though, especially with various benefits and incentives that are now in place for women to avail on several assets. Women are now showing encouraging signs and being aware of the need for financial independence. They are also working together with their family members in contributing equally to the creation of necessary assets such as housing properties.
Taking into account our rising economic inflation, it is crucial for every individual to carefully plan and invest their funds wisely. Financial institutions now offer lower interest rates to women to encourage investment into land, gold and businesses.
Here are some benefits for women when they purchase their home:
Lower interest rates on housing loan
Women who wish to seek housing loans are now eligible to avail a .05 reduction on their interest rates. The differences may seem negligible at first but take into account that it makes a considerable difference if the loan amount is high. For example, HDFC sets an interest rate for loans above Rs 30 lakhs to start at 8.70 per cent as against the norm of 8.75 per cent for other individuals.
Higher loan eligibility
Most reliable financial institutions provide loans between 55-65 times of the applicant’s monthly net income. Keep in mind this is subject to credit-worthiness and other outstanding loans. For example, if “A” earns Rs 50,000 and “B” earns Rs 60,000 after deductions, their individual and joint eligibility would be as follows –
Higher Tax Benefit
If two individuals apply for a joint loan, it is possible that the value of the house, loan and the amount to be paid will be enormous. When these individuals jointly claim tax deductions, the tax benefits for the total amount are doubled.
If the property bought on loan is let out, the total interest paid after deducting rent received can be availed as a tax deduction. In such cases, joint loans lead to increased tax benefits as shown below.
Builders are also making the home buying process easier for women, by providing offers and schemes. For example, Century Real Estate provides exclusive discounts for women home buyers along with a dedicated concierge service.