The good thing about real estate is that women get some extra leeway in it, which is not the case in the stock market. Manu Singh, business head of housing finance at Kotak Mahindra Bank, says that women’s investment in real estate is beneficial from every perspective. The government has many schemes and policies for them. Also, banks also give loans to women buyers at low interest and on concessional terms.
India’s real estate sector is undergoing rapid transformation. Women are now emerging as key investors in the property market. According to a recent survey by Anarock, a leading property advisory company, 70% of women have identified real estate as their most preferred investment category. Many of these women are considering premium or luxury home properties worth more than Rs 90 lakh. Interestingly, most of these women investors have left the stock market. They have reduced their investments due to the volatility of the stock market.
The good thing about real estate is that women get some extra leeway in it, which is not the case in the stock market. Manu Singh, business head of housing finance at Kotak Mahindra Bank, says that women’s investment in real estate is beneficial from every perspective. The government has many schemes and policies for them. Also, banks also give loans to women buyers at low interest and on concessional terms.
Let’s find out why women are increasing their investment in real estate. In addition, what schemes and incentives are available for women homebuyers and women borrowers.
Promoting women’s ownership
As women become financially independent, they have started actively investing in real estate. Keeping this in mind, the government and financial institutions have launched several schemes and policies that help women buy homes. These initiatives not only make home loans accessible, but also make home ownership more affordable and rewarding.
Interest rate concession for women
Most financial institutions offer women a 0.05 to 0.10 percent interest rate concession on home loans. While this may seem insignificant, it can lead to huge savings over a long loan term. For example, a 0.10 percent concession on a home loan of Rs 50 lakh over a period of 20 years can lead to savings of up to Rs 1 lakh.
Good creditworthiness
Women generally get higher home loan eligibility as they are considered to have lower default risk. This helps them buy better properties. For this, they should be at least 21 years of age, have a stable income and have a good credit score.
Exemption from stamp duty is also available.
Many state governments offer a 1-2% discount on stamp duty to women buyers if the property is registered in the woman’s name. For example, in Maharashtra, women get a 1% discount and in Delhi, it’s 2%. This reduces the initial cost of buying a property.
Tax benefits
Women borrowers can also avail several tax exemptions. A deduction of up to Rs 1.5 lakh (on principal) can be availed under Section 80C of the Income Tax Act and a deduction of up to Rs 2 lakh (on interest) can be availed under Section 24(b). If the home loan is in the joint name of husband and wife, both can claim these deductions separately.
Plans for first time buyers
The government has also made special schemes for women first-time home buyers. Under the Pradhan Mantri Awas Yojana (PMAY), economically weaker sections, low-income groups and middle-income groups get interest subsidy ranging from 3% to 6.5%. Apart from this, schemes like Affordable Housing Fund (AHF) help women buy houses at affordable rates.
To avail these facilities, women have to submit necessary documents like identity proof, address proof, income proof and property documents. Having correct and updated documents can avoid delays in loan processing.
