If you’re getting a home loan offers, then it pays to be a woman. Yes, several public and private sector banks, and other NBFCs are competing with one another to attract women borrowers. They offer attractive loan terms and enticing schemes to draw the fairer sex on board.
This is because banks believe that women are less likely to default on home loan repayments, thereby they provide women with low-interest home loans. Also, the government of India, in its initiative to promote property ownership among women provides incentives exclusively for women availing home loans.
First, let’s look at the Home Loan Benefits Enjoyed by Indian Women
One of the biggest differentiators between different types of new home loans is the interest rate. This is what determines your EMI. Since home loans are a long-term commitment, even a slight reduction in your monthly EMI could help you save huge sums of money in the long run.
This is one of the major benefits enjoyed by women when they apply for a home loan. The interest rate offered to women is mostly lesser than that what is offered to men. However, the catch here is that women can enjoy this lowered interest rate only when she’s included as the primary applicant or co-applicant in the home loan application.
Concessional Rates Offered to Promote Women Empowerment
The Government of India urges banks and other NBFCs to support women empowerment by providing them with home loans at reduced rates. Owning a property ensure the financial independence of women and paves the way for her empowerment.
Lowered Risk-Profile
Banks believe that women have a lowered risk profile when compared to men. The interest rate on a home loan is closely tied to the risk profile. Higher the risk, higher is the interest charged and vice versa. With that said, it must be mentioned that irrespective of the gender of the applicant, no bank will sanction a home loan without a fair credit score.
Different Home Loan Schemes for Women from Banks and other NBFCs
Different banks offer different home loan packages for women. SBI offers the “Her Ghar” plan while HDFC has the “Women Power” home loan. The other major player in the sector ICICI also offers home loans to its women customers at reduced rates. Generally, the interest charged for women applicants is at least 5 bps (Basis Points) lesser when compared to men.
In the Pradhan Mantri Awas Yojana Housing Scheme for all announced by the Honourable Prime Minister Narendra Modi, he has mentioned that preference will be given to women over other beneficiaries.
The Bottom Line
It makes sense financially and from a social perspective to register the property in the name of the women in your household, to avail subsidiaries and benefits when you get a home loan offers.
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