Cholamandalam Investment and Finance Company has been in existence since 1978. The company provides various home loan products for its customers including women at concessional rates of interest. The current rate of interest for home loans at Chola Finance range from 10% to 12% per annum. Women borrowers can enjoy a discount of 0.5% to 1% on the prevailing home loan rates.
Let us evaluate the benefits of home loans to women borrowers.
Benefits of Home Loan for Women Borrowers
- Low-interest rate: Women borrowers are offered home loans at a low rate of interest. This concessional rate could range between 0.05% - 0.1%, which makes a big difference when the home loan involved is huge.
- Lower monthly EMIs: Home loans offered to women borrowers can be between 15 to 25 years. Higher tenure ensures lower monthly EMIs, making it easier for women borrowers to repay their loans on time.
- Reduced stamp duty: Stamp duty is a crucial component of the property cost. To encourage women to own property, states across India offer a reduction of such stamp duty of around 1% to 2%. This results in considerable savings for women borrowers, resulting in them having to take a lower amount of home loan.
- Tax benefits: Women borrowers get to enjoy income tax benefits on their home loan repayments. The maximum tax deduction that can be availed under Section 80C of the Income Tax Act, 1961 is Rs 1.5 lakhs on the principal amount. Rs 2 lakhs deduction is also available on home loan interest repayment. If both husband and wife are co-owners of the property and are both earning income, both can claim tax deductions.
- Attractive add-on offers: Most banks also offer women home loan borrowers attractive add-on offers like gold coins, jewellery vouchers, and other discounts, especially during the festive season.
Important Points to Consider:
Chola Finance offers special incentives for women home loan borrowers. However, note that to avail of these benefits the woman applicant must be a co-owner of the property. So, if your wife is the co-owner of your home, then it makes sense to include her as the co-applicant on your home loan application, to avail the discounted interest rates.