Availing a home loan is considered both an investment and a very serious responsibility. Specially, with the interest rates skyrocketing. To the relief of applicants, some banks are offering loans at lower interest rates for women. Various banks, non-banking financial institutions (NBFIs), and mortgage lenders are offering female applicants exclusive and competitive home loan interest rates.
As per government ruling, women's home loans can be availed of a discount on stamp duty ranging from 1 per cent to 2 per cent. In this way, they can save around Rs 50,000 – Rs 1,00,000 on a property worth Rs 50 lakh.
Read: House Rent Allowance: How to calculate tax exemption on HRA in India? Know here
Here is a list of banks that offers a discount on home loan for female applicants:
SBI
State Bank of India offers a concession of five basis points to women home loan borrowers. The interest rate for female applicants starts from 9.15 to 10.15 per cent depending on the credit score.
HDFC
Like SBI, HDFC too offers a 5 basis points discount on home loans for women. The interest rate for women borrowers starts from 8.95% and can go up to 9.85% depending on credit score and loan amount.
Canara Bank
For women borrowers, a concession is available for 5 basis points. Canara Bank home loan interest rates start from 8.85%.
Union Bank of India
Union Bank of India gives a concession of 5 basis points for women borrowers.
Punjab National Bank
Punjab National Bank offers various offers to housing loans for women. They offer discounts to salaried women, entrepreneurs, or housewives. 0.05% p.a. lower interest rate to women borrowers, Cost of furnishing may be included up to 10% of housing loan to a maximum of Rs.25 lakh, Moratorium of up to 3 months from date of advance or till the possession date, whichever is earlier.
Other benefits for women loan applicants
Lower stamp duty for women
Stamp duty is an additional expense while buying a property. Many states offer 1% to 2% reduction in stamp duty in an effort to encourage women to purchase property.
Benefits from taxes
Women don’t get separate tax breaks on home loan repayment. For principal repayment and interest payments, the maximum tax deduction is Rs 1.5 lakh and Rs 2 lakh, respectively. If a husband and wife own the property jointly and each has a different source of income, both may be eligible for tax deductions.
