Women get better terms on home loans, stamp duty payments and insurance policies

There was a time when women did not get involved in financial decisions. But this has gradually changed in the past decade. Women are not only participating in money matters, but increasingly taking charge of their finances. The government has facilitated this by offering specific benefits to women entrepreneurs and investors. The financial services industry has done its bit by introducing products and services aimed at women. Here is a list of a few financial advantages that women enjoy. Make sure you don’t miss these benefits.

Lower stamp duty on property purchase

Buying a house? It will cost you less if the property is registered in the name of a woman. In Delhi, for instance, the stamp duty payable by men is 6 percent of the value of the property. But in case of women, the stamp duty is only 4 percent. That’s a straight saving of Rs 2 lakh on a property worth Rs 1 crore. For a joint purchase by husband and wife, the stamp duty is 5 percent. Several other states, including Bihar, Haryana, Punjab, Maharashtra, Orissa, Uttar Pradesh and Uttarakhand offer similar concessions of 0.5 percent point to 3 percent points on stamp duty to women home owners. The logic is simple: the ownership of the property will act as a support for the woman and safeguard her interests.

Lower home loan rates

There are other incentives for registering a property in the name of the woman. Home loan rates are lower if the primary applicant is a woman. Most banks and financial institutions offer a discount of around 5 bps on the interest rate. This might seem small, but a home loan is a long-term commitment, and even a small difference will add up to a huge sum over 15-20 years. Besides the lower rate, some lenders also relax the terms and partially waive the processing fee.

In any case, a joint home loan allows a couple to claim higher tax benefits than taking a loan individually. Some government schemes, such as the Pradhan Mantri Awas Yojana (PMAY), make it mandatory for including a woman in the ownership of the property. The credit subsidy under the PMAY scheme is available only if a woman is the co-owner of the property.

Also read: SBI, Kotak cut home loan rates: Now is the best time to buy a house

Cheaper loans for entrepreneurs

The government also offers cheaper credit to women entrepreneurs. Under the Mudra scheme, loans of up to Rs 10 lakh can be availed by individuals and small businesses in non-agriculture sectors. Women entrepreneurs get a discount of 25 bps, which is quite encouraging. Incidentally, data indicates that NPA levels of Mudra loans taken by women are 30-50 percent lower than those taken by male entrepreneurs.

Savings bank accounts 

Apart from offering cheaper credit, the banking industry has designed products specifically for women. Female customers of some banks can maintain a lower minimum balance in a savings account and get cheaper loans and other benefits. For example, the Women’s Saving Account from HDFC Bank comes with additional benefits such as an accidental death cover of Rs 10 lakh, accidental hospitalisation cover of Rs 1 lakh, preferential rate of interest and extended tenure on loans, waiver of first year’s locker rental and the EasyShop Woman's Advantage Debit Card, besides other additional benefits. The Advantage Woman Savings Account from ICICI Bank offers lower rates for home, personal and car loans.

Also read: Don't be fooled by Women's Day offers on savings bank accounts, look before you leap

Credit cards for women

Banks have also customised their plastic money for women customers. Some banks do not cap the number of free ATM withdrawals for female customers. They also get discounts at specific merchant establishments and earn higher reward points on certain spends that are typical expenses incurred by women.

Also read: Never had a loan or credit card? Your credit score may still not look great

Insurance policies aimed at women 

Though everybody needs health insurance, women especially need covers for several health issues they encounter. Besides comprehensive health plans, insurance companies offer policies that cover women-specific diseases. Policies such as the Bajaj Allianz critical illness plan and TATA AIG Wellsurance cover cancers that are women-specific and associated job loss challenges.

When it comes to life insurance, companies extend high-value covers only to persons with high income. However, some life insurance companies provide term insurance cover to the wife of an insured person even if the woman is a homemaker with no income of her own.