TomorrowMakers

A look at the concessions and other benefits offered by home loan companies to women

Home Loan Interest Rates

Women in India are offered various financial incentives by banks and financial institutions. This is seen as a move to ensure greater financial inclusion of women in the Indian economy. In a country with a palpable gender disparity, these type of concessions increases women's participation in the financial market. Concessional home loan interest rates have the effect of increasing female applicants in the loan market. In a typical household scenario, the household ends up saving interest costs if the lady of the house applies for the loan. This, in turn, potentially increases the financial inclusion of women.

Also ReadHow can you convert the ancestral property to self-acquired property

Home Loans and Women

If you or your household plans to apply for a home loan, perhaps a look at the interest rates offered to women borrowers would help you save a significant interest cost. Let us have a look at some of the leading home loan financers and the concessions they offer to women investors.

State Bank of India offers a concession of 5 basis points to women. The Her Ghar home loan for women offers home loans at a concessional rate of 9.85%. Repayment tenure can be up to 30 years, or till the borrower reaches the age of 70, whichever is earlier. This reduces the Equated Monthly Instalment significantly.

HDFC home loans are available at a concession of 5 basis points for woman home loan borrowers. Depending on the credit score and loan amount, the rate of interest is presently offered from 8.95% to 9.85%. 

  • Canara Bank – A concession of 5 basis points is available on Canara Bank home loans applied by women. The interest rate on home loans from this lender starts at 8.85%.

Union Bank of India maintains the same home loan interest rate concession of 5 basis points as its competitors. Women applicants can be a borrower or a co-borrower of this home loan and must be the owner or co-owner of the property for which the loan is sought.

  • Axis Bank – Axis Bank offers home loans to salaried as well as non-salaried women at an interest rate starting from 8.75%. This can go up to 9.15% depending on the loan and credit score. The maximum repayment period is 30 years. They charge a processing fee of 1% of the loan, with a maximum of Rs 10,000.

Also Read: 6 reasons why housewives should consider filing IT returns

Stamp Duty concessions

Apart from the concessional interest rates, women home loan borrowers also enjoy a lower rate of stamp duty. Stamp duty rates vary from state to state, but most states offer a rebate of 1 to 2% on the same. 

Also Read: 5 reasons why SGB is a good investment option for your investment portfolio

By borrowing a home loan, a woman applicant or co-applicant can enjoy the income tax benefits available on home loan principal and interest repayment. When the home loan is applied jointly and both have different income sources, these benefits can be availed of by both the co-applicants.

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Women in India are offered various financial incentives by banks and financial institutions. This is seen as a move to ensure greater financial inclusion of women in the Indian economy. In a country with a palpable gender disparity, these type of concessions increases women's participation in the financial market. Concessional home loan interest rates have the effect of increasing female applicants in the loan market. In a typical household scenario, the household ends up saving interest costs if the lady of the house applies for the loan. This, in turn, potentially increases the financial inclusion of women.

Also ReadHow can you convert the ancestral property to self-acquired property

Home Loans and Women

If you or your household plans to apply for a home loan, perhaps a look at the interest rates offered to women borrowers would help you save a significant interest cost. Let us have a look at some of the leading home loan financers and the concessions they offer to women investors.

State Bank of India offers a concession of 5 basis points to women. The Her Ghar home loan for women offers home loans at a concessional rate of 9.85%. Repayment tenure can be up to 30 years, or till the borrower reaches the age of 70, whichever is earlier. This reduces the Equated Monthly Instalment significantly.

HDFC home loans are available at a concession of 5 basis points for woman home loan borrowers. Depending on the credit score and loan amount, the rate of interest is presently offered from 8.95% to 9.85%. 

  • Canara Bank – A concession of 5 basis points is available on Canara Bank home loans applied by women. The interest rate on home loans from this lender starts at 8.85%.

Union Bank of India maintains the same home loan interest rate concession of 5 basis points as its competitors. Women applicants can be a borrower or a co-borrower of this home loan and must be the owner or co-owner of the property for which the loan is sought.

  • Axis Bank – Axis Bank offers home loans to salaried as well as non-salaried women at an interest rate starting from 8.75%. This can go up to 9.15% depending on the loan and credit score. The maximum repayment period is 30 years. They charge a processing fee of 1% of the loan, with a maximum of Rs 10,000.

Also Read: 6 reasons why housewives should consider filing IT returns

Stamp Duty concessions

Apart from the concessional interest rates, women home loan borrowers also enjoy a lower rate of stamp duty. Stamp duty rates vary from state to state, but most states offer a rebate of 1 to 2% on the same. 

Also Read: 5 reasons why SGB is a good investment option for your investment portfolio

By borrowing a home loan, a woman applicant or co-applicant can enjoy the income tax benefits available on home loan principal and interest repayment. When the home loan is applied jointly and both have different income sources, these benefits can be availed of by both the co-applicants.

Source: