Benefits for Women while Buying Properties
There are certain benefits that women get when it comes to buying a house. These aren’t always apparent, but take a closer look and you will see that there are multiple advantages to buying a house in the name of a woman.
While registering a property, a stamp duty is levied, and the percentage varies from state to state. Stamp duty is calculated as a percentage of the agreed value of the property or its market value, which ever is greater. This has to be paid before a property can be registered, which involves another fee.
In some states, if a property is bought in the name of a woman, the stamp duty levied is lower compared with what’s applicable for a man. For instance, in New Delhi, a woman has to pay 4% stamp duty compared with 6% for a man. This is also true in case of conversion of a property from lease hold to freehold, and in case of gifts.
In some states, the stamp duty depends on the region in which a sale is executed. For instance, in Haryana, a man is required to pay 8% stamp duty in urban areas and 6% in rural areas, while a woman has to pay 6% in urban areas and 4% in rural areas.
In fact, some states that offer differential rates increase the rate if a property is bought jointly in the names of a man and a woman. For instance, in Delhi, such a property will attract 5% stamp duty instead of 4% for a sole female owner and 6% for a sole male owner.
Interest on home loan
The rate of interest levied on a home loan is lower in some cases for women. For instance, State Bank of India charges a woman customer 10.10% interest rate instead of 10.15% for other customers. So roughly, for loan with tenor of 30 years, a woman will pay Rs.885 per lakh compared withRs.889 per lakh of loan by other customers. Similarly, LIC Housing Finance Ltd charges 10.10% interest to women customers compared with 10.35% for other customers.
There are also other institutions with limited period offers. Tata Capital Housing Finance is offering a differential rate for women till 8 March, the International Women’s Day.
The difference in rates may not look significant, but they make a big difference if the loan amount is high. It is important to note here that financial institutions usually offer such differential rates on home loans only when a woman is the sole applicant or is the first co-applicant. Check with the lender before availing a loan.