BAJAJ BROKING
With the increasing participation of women in the workforce in India, their role in managing their household’s financial decisions is also on the rise. To promote women’s home ownership, banks and non-banking financial companies (NBFCs) are offering additional perks with their home loan products. These benefits include favourable interest rates and higher chances of loan approval. Furthermore, the trend of women participating in co-ownership of homes is growing, as including women as co-applicants enhances the affordability of home loans.
Many home loan institutions offer reduced interest rates to women applicants, leading to lower Equated Monthly Instalments (EMIs) and substantial long-term savings.
Home Loan Tax Benefits for Individuals
Home Loan Tax Benefits for Couples
Note: Tax benefits are proportional to the contribution of each co-applicant in the repayment of principal and interest, subject to the mentioned limits.
Also Read: How Indian Women Can Benefit from Government Schemes
Many state governments encourage female home ownership by offering reduced stamp duty charges, typically by 1-2%. This results in significant savings, such as Rs. 80,000-Rs. 1,60,000 on an Rs. 80 lakh property.
Regardless of gender, the government provides tax benefits on home loans, with potential deductions of up to Rs. 3.5 lakh under the Income Tax Act, 1961. Specifically for women, Section 80C of the Income Tax Act enables a tax deduction of up to Rs. 1.5 lakh on home loan repayments, while Section 24(b) of the Income Tax Act allows them to claim a tax deduction of up to Rs. 2 lakh on home loan interest. These tax benefits double when women opt for joint home loans with their spouses or close relatives, provided both share ownership of the property.
Securing a home loan necessitates meticulous long-term planning, including comparing interest rates, features, and associated advantages. Always assess your home loan eligibility to determine your qualified amount and identify ways to enhance it.
Lenders assess various factors such as income, credit score, and repayment capability of co-applicants when evaluating the eligibility of the main loan applicant. If a female co-applicant joins the application, she shares the responsibility for loan repayment, reducing the credit risk for lenders. As a result, this augmentation in creditworthiness can elevate the chances of the primary applicant’s home loan approval. Consequently, individuals facing challenges in securing a home loan due to low credit scores, limited income, or insufficient repayment capacity may explore the option of including a financially contributing female family member as a co-applicant. The collective income and repayment capacity of the primary applicant and the female co-applicant can also boost their eligibility for a higher loan amount.
Share this article:
Gold Price in India | Gold Rises 1% to $2,719 Ahead of U.S. PPI Data
12 Dec, 2024 | 39 Min. read
Indian Overseas Bank Receives ₹808.3 Crore Income Tax Refund
12 Dec, 2024 | 2 Min. read
Shakti Pumps Secures ₹754.3 Crore Solar Water Pump Order in Maharashtra
12 Dec, 2024 | 2 Min. read
Coca-Cola Sells 40% Stake in Bottling Arm to Jubilant Bhartia Group
12 Dec, 2024 | 2 Min. read
Vedanta to Consider Fourth Interim Dividend on December 16
12 Dec, 2024 | 2 Min. read
Share Market Today | Flat to Positive Start Expected for Indian Markets Amid Global Cues
12 Dec, 2024 | 4 Min. read
Securities Transaction Tax: Meaning & Charges
12 Dec, 2024 | 7 Min. read
International Gemological Institute India IPO Issue Date & Pricing
12 Dec, 2024 | 4 Min. read
How to Apply for International Gemological Institute India IPO?
12 Dec, 2024 | 3 Min. read
Robo Trading: Meaning, Examples, Features & Types
12 Dec, 2024 | 6 Min. read
India’s Leading Infrastructure Stocks for 2024
12 Dec, 2024 | 6 Min. read
India’s Leading Government Stocks in 2024
12 Dec, 2024 | 6 Min. read
RBI Launches ULI: Transforming Loan Access
August 27, 2024 | 4 Min. read
Textile Sector in India
September 20, 2024 | 5 Min. read
List of IPOs with DRHPs Filed
November 30, 2023 | 3 Min. read
Aditya Birla Group
September 28, 2023 | 10 Min. read
Bajaj Housing Finance Ltd IPO: Things Smart Investors Need to Know
September 05, 2024 | 4 Min. read
Budget Stock Ideas 2024-2025 | Stocks to Buy Today
July 24, 2024 | 4 Min. read
IPO Eligibility Criteria : Full Details
March 15, 2024 | 6 Min. read
What Is the Lock-In Period in IPOs?
October 18, 2023 | 6 Min. read
Godfrey Phillips Announces 2:1 Bonus Shares
September 16, 2024 | 7 Min. read
Jindal Group- A Comprehensive Analysis
September 27, 2024 | 7 Min. read
Level up your stock market experience: Download the Bajaj Broking App for effortless investing and trading