25/01/2024
Women are emerging as key homebuyers. Experts believe that the surge in women homebuyers in India is driven by several factors. Will this trend continue in 2024? What do industry experts have to say? Livemint takes a deep dive into why women are emerging as key homebuyers.
How much concession do women borrowers get on home loan interest rates?
Many banks and financial institutions offer special concessions on home loan interest rates for women borrowers, which can vary from lender to lender.
“Generally, the concession ranges from 0.05% to 0.10% on the standard home loan interest rates," said Kamaljeet Rastogi, Chief Executive Officer, of Manipal Business Solutions.
“Additionally, depending on the region and state, women borrowers can also get a discount of approximately 1% - 2% on stamp duty charges," said Rahul Mehrotra, MD & CEO, RHDFCL
This initiative is often aimed at promoting gender equality in financial matters and encouraging women to invest in real estate.
Challenges and Opportunities of Women While Purchasing Property
Despite having a better risk profile than other categories of borrowers, women continue to face many challenges while accessing formal finance. While women encounter challenges like gender bias and financial literacy gaps, government schemes and incentives present opportunities for them in the real estate sector.
“Women face challenges in buying homes, including gender bias, financial barriers, limited awareness, and safety concerns," said Kamaljeet Rastogi
As per Rahul Mehrotra, there are opportunities for women borrowers. These may include:
Lenders offer lower stamp duty and lesser rate of interest (RoI)
Various government initiatives supporting women across states
“Women enjoy higher loan eligibility, lower interest rates, and tax benefits. The Pradhan Mantri Awas Yojana (PMAY) offers a 6.5% interest subsidy for women in the Economically Weaker Sections (EWS) and Lower Income Group (LIG), irrespective of marital status. Additionally, reduced stamp duty charges further incentivize property acquisition,"said Pramod Kathuria, Founder and CEO of Easiloan
