Contacting a real estate developer, looking for a house is one of the biggest dreams of many people. Changing this dream into a reality is a lot of effort. There is tons of planning involved and the struggle of purchasing the house within a budget is a different ball game altogether.
In such situations, a home loan comes to the rescue. You can avail of a home loan for buying a new house for sale in Mogappair or opt for flats on sale in Mogappair. Home loans are not just limited to buying a new property, if you need money for renovation, extension, or repairs, a home loan will cover these costs.
When it comes to borrowers who are women, there are also certain benefits that they enjoy as per the current laws!
Lower interest rates
Many lenders consider women to be more responsible borrowers and encourage them to be owners of assets such as property. Hence, special home loan rates are applied on loan when it is borrowed by women which are lesser than the market rate. This has a significant impact on the EMIs and makes the repayment stress free.
Access to higher amounts with simple eligibility criteria
Women can have access to a loan amount of INR 30 lakh to 5 crores and buy a house from a real estate developer. Due to easy and simple eligibility criteria, many women borrowers apply for home loans.
Longer repayment tenors
A home loan usually has a longer repayment period like 25 years. This reduces the pressure of paying back loans and monthly installments. You can take care of other expenses while paying your loan.
Lower stamp duty and tax deductions
Whenever a woman registers a property in her name, the stamp duty is lowered by 1 to 2%. This percentage might look insignificant, but if calculated, it amounts to a big number. Especially when you are paying back a loan. Women can also claim tax deductions that go up to INR 1.5 lakh to 2 lakh.
Making use of schemes like PMAY
Women applicants get preference under the Pradhan Mantri Awas Yojana (PMAY) and need for mandatory co-ownership. This has led to an upsurge of women applying for home loans in India.
Now, let’s take at the different kinds of home loans available in India!
A home loan is issued when a borrower needs housing finance and opts to borrow that money from a finance company, a public bank, or a private bank. Once you purchase from a real estate developer, you pay back the loan in the form of EMIs.
A home loan can cover 80 to 90% of the market price of a property.
House construction loan
You can avail of a house construction loan when you already have a plot of land, but you need money to build a house.
House extension loan
Let’s say you already own a house. But you want to add new rooms or maybe another house to the pre-existent house. In such cases, you can opt for a house extension loan.
House improvement loan
Many times our homes need extensive renovation or repairing in the interior or the exterior of the house. Issues with plumbing, ceiling, flooring, and electrical system are expensive affairs and you might need help to cover the expenses. A house improvement loan can be of immense help to people.
Home loan balance transfer
Did you know that you can transfer your loan from one lender to another in case the interest rates are overwhelming or because you are unhappy with the service provided by the current lender? Yes, that is true. You can transfer the outstanding loan amount to another lender who is offering lower interest rates as well as better service.
Composite home loan
When you opt for a composite home loan, you are provided with the financing for buying land where you want to build a house and for constructing the house. It is a single loan that covers both expenses.
What are some of the benefits of taking a home loan?
Besides being able to buy your dream house or renovating your home, there are some more advantages of taking a loan.
One of the biggest benefits of availing a home loan is the income tax deduction claimed on the principal repayment and interest. Under different sections of the income tax, you can claim INR 1.5 to 2 lakh.
Low rate of interest
The interest rate of home loans is the lowest among all other types of loans available. If you ever experience a cash crunch, instead of opting for a personal loan, you can get a top-up done on your existing home loan where the rate of interest is significantly lesser than a personal loan.
Due diligence of property
Whenever you apply for a home loan, the bank conducts audits on the property. Documents are checked for their validity and also from a legal perspective. Owing to the due diligence check, the risk of getting scammed is significantly lesser.
Long repayment period
Among all other kinds of loans, the repayment period for a home loan is 25 to 30 years. This is an advantage as you have sufficient time at your disposal for paying back the loan in the form of EMIs.
With each passing day, more women are gaining financial independence and becoming owners of assets. With the help of added benefits for women borrowers of home loans, the process of applying for a home loan is easier. We hope this blog acts as a tool for providing crucial information about home loans and helping you take the right step.