
As a woman, getting a home loan with a co-borrower to purchase your dream house has benefits manifold. Yes! The central government and financial institutions are taking many steps to incentivise women to fulfil their dream of buying a house.
So, let’s look at the various advantages available to a woman primary borrower.
Lower interest rates
To encourage women homeownership, lenders typically offer more competitive home loan interest rates when women avail of housing loans as primary borrowers. Even though the decrease in interest rate may only be 0.05%-1.00%, it substantially lowers your interest outgo and your EMIs, which result in long-term savings.
Lowered interest amount
Besides getting attractive home loan rates, as a primary borrower, you can reduce your interest payable. How? When a woman co-owns a property, lenders calculate the housing loan interest using the daily reducing balance method.
Here, if you prepay a large sum partially, your principal amount gets reduced daily. This means you pay a relatively smaller interest amount.
Moreover, some lending institutions levy no part prepayment or foreclosing charges on women borrowers.
Tax benefits
Another benefit of taking a loan as a primary borrower is the tax deductions on the loan repayment. Collect benefits …