Financial inclusion and gender empowerment have become a top priority for governments and financial institutions around the world. In this regard, providing concessions on interest rates to certain categories of borrowers, such as female borrower, has become a common practice in the banking and financial sector. Non-Banking Financial Companies (NBFCs) are also not behind in this trend.
Women borrowers can avail special benefits provided by several banks and NBFCs.
SBI, HDFC and Canara Bank offer incentives to women borrowers
State Bank Of IndiaHDFC, Canara Bank and Union Bank of India are some of the banks that offer incentives to women looking for home loans.
SBI offers a discount of 5 basis points to women 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 women borrowers a reduction of 5 basis points in interest rates ranging from 8.95% to 9.85% depending on the credit score and loan amount.
For women customers, Canara Bank home loan interest rates start from 8.85%. Women applicants who are both owner and co-owner of the proposed housing property and borrower/co-borrower are eligible for 0.05% interest rate reduction from Union Bank of India.
Amit Gupta, MD, SAG Infotech, said some Indian states reduce stamp duty from 1% to 2% for women buyers to encourage the acquisition of real estate. On the other hand, women do not specifically benefit from tax benefits while paying off the home loan.
“Maximum Tax Deduction” 1.5 lakh for principal repayment and Rs 2 lakh is available to all for interest payment. If a husband and wife jointly own the property and each has its own sources of income, both may be eligible for tax deduction,” he said.
As per RBI guidelines, NBFCs are permitted to offer different interest rates to different categories of borrowers including women borrowers.
Hence, many NBFCs offer concessional interest rates to women borrowers applying for home loans. These interest rate concessions can range from a few basis points to a percentage point or more, depending on various factors such as loan amount, loan tenure, credit score, income level and other eligibility criteria, Mahesh Shukla, CEO & Founder , he said. pay me.
It is essential to compare the interest rates and other terms and conditions offered by various NBFCs before applying for a home loan for women borrowers.
According to Mahesh Shukla, apart from interest rate concessions, NBFCs can also provide other benefits to women borrowers, such as waived or lower processing fees, longer repayment tenure, and higher loan-to-value (LTV) ratios. Some NBFC 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 NBFC that offers them the best deal based on their individual financial needs and eligibility criteria.
catch all business News, market news, today’s fresh news events and Breaking News Update on Live Mint. download mint news app To get daily market updates.