India’s real estate sector is going through a rapid change. Now women are emerging as a major investor in the property market. According to a recent survey by veteran property consultancy company Anarock, 70% of women have described real estate as their most favorite investment category. Many of these women are considering premium or luxury home property above Rs 90 lakh. Interestingly, most of these women investors have left the stock market. They have reduced the investment due to the instability of the stock market.
The good thing related to real estate is that women get some additional discounts, which is not in the stock market. Manu Singh, a business head of Housing Finance at Kotak Mahindra Bank, says that the investment of women in real estate is beneficial from every perspective. There are many schemes and policies of the government for him. Also, banks also give loans to women buyers on low interest and concessional terms.
Let us know why women are increasing investment in real estate. Also, how the schemes and incentives are present for women homebayers and loans.
Promotion of women’s ownership
As women are becoming financially self-sufficient, they have started investing active in real estate. Keeping this in mind, the government and financial institutions have introduced several schemes and policies, which help women buy homes. These initiatives not only make home loans accessible, but also makes home ownership more economical and beneficial.
Women exemption interest rate
Most financial institutions give women an interest rate discount on home loans from 0.05 to 0.10 percent. It may seem modest, but it can cause great savings in long loan tenure. For example, in a period of 20 years, a short discount of Rs 50 lakh can be saved up to about Rs 1 lakh on a discount of 0.10%.
Loan eligibility lead
Women usually get more home loan eligibility as they are considered to be low default risk. This helps them to buy better property. For this, they need to have at least 21 years of age, stable income and good credit score.
Exemption is also available in stamp duty
Many state governments give women buyers 1-2% discount on stamp duty, if the property is registered with the woman. For example, women get 1% discount in Maharashtra and 2% in Delhi. This reduces the initial cost of property procurement.
Tax benefits
Women borrowers can also take many discounts in tax. Under Section 80C of the Income Tax Act, a deduction of up to Rs 1.5 lakh (on the principal amount) and under section 24 (b) can be obtained (on interest). If the home loan is in the joint name of the husband and wife, both of them can make these cuts different claims.
Plans for buyers for the first time
The government has also made special plans for women who buy homes for the first time. Under the Pradhan Mantri Awas Yojana (PMAY), the economically weaker section, low income group and middle income group get subsidy at 3% to 6.5% interest. Also, schemes like Affordable Housing Fund (AHF) help women buy houses at cheap rates.
To avail these facilities, women have to submit the necessary documents like identity card, proof of address, income proof and property documents. The correct and updated document prevents delay in loan processing.
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