How Much Concession Do Women Borrowers Get On Home Loan Interest Rates? Find Out!

Buying your dream house can be an extensive task and requires many years of planning between savings and expenses. But there are flexible options like home loans which eliminates the need for lumpsum cash and also brings systematic debt payment method in the form of EMIs. Taking home loans also improves creditworthiness. Women in the current times have more benefits from home loans than general individuals. They are not only offered concessions on home loans, but also are given lower stamp duty rates and property registration charges for accessing government schemes.

Before getting into the details of concessions on home loan rates, Pramod Kathuria, Founder and CEO of Easiloan explains that the surge in women homebuyers in India is driven by several factors, with notable benefits and opportunities.

Talking about the benefits for women borrowers, Kathuria said, women enjoy higher loan eligibility, lower interest rates, and tax benefits. The Pradhan Mantri Awas Yojana (PMAY) offers a 6.5% interest subsidy for women in the Economically Weaker Sections (EWS) and Lower Income Group (LIG), irrespective of marital status. Additionally, reduced stamp duty charges further incentivize property acquisition.

He also added, that lenders increasingly rely on women due to their enhanced creditworthiness, providing them larger loans at preferential interest rates.

So, how much concessions do women borrowers get on home loan interest rates?
According to Rahul Mehrotra, MD & CEO, RHDFCL, generally, NBFCs and Banks offer a concession of approximately 5 bps to women home loan borrowers. Additionally, depending on the region and state, women borrowers can also get a discount of approximately 1% - 2% on stamp duty charges.

Meanwhile, Kamaljeet Rastogi, Chief Executive Officer, Manipal Business Solutions said, many banks and financial institutions offer special concessions on home loan interest rates for women borrowers, and it can vary from lender to lender. Generally, the concession ranges from 0.05% to 0.10% on the standard home loan interest rates. This initiative is often aimed at promoting gender equality in financial matters and encouraging women to invest in real estate.

In Kathuria's view, women borrowers typically receive interest rates 0.05-1% lower than their male counterparts. This favorable treatment is rooted in women's proven creditworthiness, leading to larger loan amounts.

Here are some of the major banks' concessions for women borrowers in home loans:
SBI Home Loan Rates:
In regular home loans, SBI is offering a 9.15% rate to borrowers who have credit scores of over or equal to 750, while the rate is 9.35% each on credit scores between 700-749 and NTC/NO CIBIL SCORE/-1. Further, the bank is offering rates of 9.45% and 9.65% on credit scores of 650-699 and 550-649 respectively.

SBI on its website said that 5 bps concessions are available to women borrowers subject to minimum EBR, i.e. 9.15%.

Bank of Maharashtra:
Under its Maha Super Housing Loan, the bank said, "the rate of interest concession (including concession for women borrower) and any deviation will be applicable to a borrower having CIBIL score below 725 slabs, subject to a minimum floor rate of i.e. RLLR -0.80%.

Other lenders like Canara Bank, Union Bank of India, and Punjab National Bank are also known to provide 5 bps concessions on housing loans.

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