Money saving mantra: Incentives given by these banks, NBFCs that women must know
3 min read . Updated: 27 Apr 2023, 09:43 AM IST
PremiumMoney saving tips: Concession for women borrowers in home loan interest rates by banks, NBFCs
Financial inclusion and gender empowerment have become a top priority for governments and financial institutions worldwide. In this regard, offering concessions on interest rates to certain categories of borrowers, such as women borrowers, has become a common practice in the banking and financial sector. Non-Banking Financial Companies (NBFCs) are also not left behind in this trend.
Female borrowers can take advantage of particular benefits provided by a number of banks and NBFCs.
SBI, HDFC, and Canara Bank offer incentives to women borrowers
SBI, HDFC, Canara Bank, and Union Bank of India are a few of the banks that offer incentives to women looking for home loans.
SBI offers a 5 basis point discount to female applicants for home loans, and, depending on their credit score, their interest rate varies from 9.15% to 10.15%. Similar to this, HDFC offers female borrowers a 5 basis point reduction off of interest rates that range from 8.95% to 9.85% depending on credit score and loan amount.
For women customers, Canara Bank offers house loan interest rates starting at 8.85%. Female applicants who are both owners and co-owners of the proposed housing property and borrowers/co-borrowers on the loan are eligible for a 0.05% interest rate decrease from Union Bank of India.
Amit Gupta, MD, SAG Infotech said some Indian states reduce the stamp duty for female buyers by 1% to 2% to encourage the acquisition of real estate. Women, on the other hand, do not specifically benefit from tax advantages while paying back home loans.
“A maximum tax deduction of ₹1.5 lakh for principal repayment and ₹2 lakh for interest payments is available to everyone. If a husband and wife jointly own the property and each has their own sources of income, both may be qualified for a tax deduction," he said.
As per the RBI guidelines, NBFCs are allowed to offer differential rates of interest to different categories of borrowers, including women borrowers.
Therefore, many NBFCs offer concessional interest rates to women borrowers who apply for home loans. These interest rate concessions may range from a few basis points to a percentage point or more, depending on various factors such as the loan amount, loan tenure, credit score, income level, and other eligibility criteria, said Mahesh Shukla, CEO & Founder, PayMe.
It is essential for women borrowers to compare the interest rates and other terms and conditions offered by different NBFCs before applying for a home loan.
According to Mahesh Shukla, apart from interest rate concessions, NBFCs may also offer other benefits to women borrowers, such as waived or reduced processing fees, longer repayment tenure, and higher loan-to-value (LTV) ratios. Some NBFCs may also offer special schemes for women entrepreneurs or single women borrowers, such as lower interest rates for loans taken for business purposes.
Women borrowers should carefully assess the various options available to them and choose the bank or an NBFC that offers them the best deal based on their individual financial needs and eligibility criteria.