Which are the banks from which borrowing would make better sense, as far as women home loan borrowers are concerned? We examine their improved financial standing puts women in a better position to become property owners all on their own, several government policies also aid them to reach this goal, early on in their careers. This is primarily done, by offering lower stamp duty and home loan interest rates to women buyers and home loan borrowers. Considering that 2021 may be an ideal time to buy a home with the help of housing finance, given the record low-interest rates, women borrowers would find it even more affordable to buy their dream home right now.
This raises the question: Which are the banks from where borrowing would make better sense for women home loan applicants? As the interest rates will always be the single-biggest influencer in driving the decision of a woman borrower, we have listed the banks that offer them the most affordable deals in 2021.
While making the list we have also determined the banks’ efficiency in offering loan affordability to women by factoring in the fringe charges, such as processing fees.
Also, note that the rates mentioned in this article are with respect to the floating rate of interest linked with the RBI’s repo rate and not the previous marginal cost of funds-based lending rate (MCLR) regime or the base rate or prime lending rate regimes. Only Citi Bank is an exception, which has linked its home loans to the government’s treasury bills.
State Bank of India (SBI) –
Irrespective of the rate at which the public lender offers the general public a home loan at any given time, it offers a lower rate by 5 basis points, to women borrowers. This means that if SBI is currently offering home loans at 7% per annum, a woman borrower will be given this loan at 6.95%.
Note that 100 basis points make up for one percentage point.
SBI home loan interest rate
| Rate of interest on a home loan | Best rate* | Highest rate* |
| For salaried women | 6.8% | 7.20% |
| For self-employed women | 7% | 7.40% |
*Rate applicability valid till March 31, 2021
Longest tenure: 30 years
Processing fees: Not applicable till March 31, 2021
ICICI Bank –
Apart from getting a lower rate of interest from this private lender, a female borrower will also enjoy the ease of doing business at ICICI Bank.
ICICI Bank home loan interest rate
| Rate of interest on a home loan | Best rate* | Highest rate* |
| For salaried women | 6.80% | 7.95% |
| For self-employed women | 6.95% | 8.05% |
*Rate applicability valid till January 31, 2021
Maximum tenure: 30 years
Processing fees: 0.50% of the home loan amount
HDFC –
Similar to SBI, HDFC also offers women borrowers a 5-basis-point discount on home loans. However, it does not currently offer any waiver on the processing fee.
HDFC home loan interest rate
| Rate of interest on a home loan | Best rate* | Highest rate* |
| For salaried women | 6.95% | 7.80% |
| For self-employed women | 6.95% | 7.85% |
*Rate applicability valid till March 31, 2021
Maximum tenure: 30 years
Processing fees: Up to 0.50% of the loan amount or Rs 3,000, whichever is higher.
Union Bank of India –
The difference between home loan rates for men and women at this public bank is also five basis points. However, your credit score will play a crucial role in fetching you the best rates. Union Bank of India offers home loans at the lowest rate to women borrowers whose credit score is above 800.
Union Bank of India home loan interest rate
| Rate of interest on a home loan | Best rate* | Highest rate* |
| For salaried women | 6.80% | 7.30% |
| For non-salaried women | 6.85% | 7.35% |
*Rate applicable from November 1, 2021
Maximum tenure: 30 years
Processing fees: Valuation/ legal / stamp duty / CERSAI / memorandum registration charges, as per actuals.
Kotak Mahindra Bank –
Apart from getting a personal relationship manager to deal with your home loan queries, you would also enjoy a high level of ease of doing business with this private lender.
Kotak Mahindra Bank home loan interest rate
| Rate of interest on a home loan | Best rate | Highest rate |
| For salaried women | 6.75% | 8.30% |
| For non-salaried women | 6.85% | 8.45% |
Maximum tenure: 30 years
Processing fees: None currently; from 0.25 to 0.50% of the loan amount in general.
Axis Bank –
If you are looking only for a small sum to make the purchase, eying tax benefits, this is the bank for you, as it offers loans starting at Rs 3 lakhs. Those who already have a good credit history can reap other benefits, as the bank will look favorably at customers with good repayment records and high credit scores and may offer faster approval and disbursal or flexible repayment schedules or lower processing charges. In some cases, the bank may offer a lower interest rate, too.
Axis Bank home loan interest rate
| Rate of interest on a home loan | Best rate | Highest rate |
| For salaried women | 6.90% | 8.40% |
| For non-salaried women | 7.00% | 8.55% |
Maximum tenure: 30 years
Processing fees: Up to 1% of the loan amount, subject to a minimum of Rs 10,000. An upfront processing fee of Rs 5,000 plus GST, at the time of application login.
Punjab National Bank (PNB) –
This is another public lender that has significantly reduced its home loan interest rates for borrowers. If you have already retired, you could still get a loan from PNB, as it offers loans to individuals up to 70 years of age.
Punjab National Bank home loan interest rate
| Rate of interest on a home loan | Best rate | Highest rate |
| For salaried individuals | 6.80% | 7.40% |
| For self-employed individuals | 6.80% | 7.40% |
Maximum tenure: 30 years
Processing fees: None, from January 1, 2021, to March 31, 2021. Typically, it is 0.35% of the loan amount with the lower and upper limit capped at Rs 2,500 and Rs 15,000, respectively.
Citi Bank –
Women looking for big-ticket loans to secure a luxury unit will find this bank willing to lend to their requirements, with Citi Bank offering up to Rs 10 crores as a home loan. Unlike most banks which now offer home loans linked with the RBI’s repo rate, Citi Bank’s home loan is linked with the treasury bill benchmark-linked lending rate (TBLR).
Citi Bank home loan interest rate
| Rate of interest on a home loan | Best rate |
| For salaried individuals | 6.75% |
Maximum tenure: 25 years
Bank of Baroda (BoB) –
While the slow processing of the application at this public lender might irk you, it is only for your benefit – and obviously for their own – that banks thoroughly scan all the documents carefully. If low-interest rates are a driver, this might be a good option for you. If your loan requirement is low, you could get a home loan worth only Rs 2 lakhs at BoB, something not many banks offer.
Bank of Baroda home loan interest rate
| Rate of interest on a home loan | Best rate | Highest rate |
| For salaried women | 6.85% | 9% |
| For self-employed women | 7% | 9% |
Maximum tenure: 30 years
Processing fees: None currently; 0.50% of the loan amount generally, with the minimum amount capped at Rs 8,500 and the maximum at Rs 15,000.
Source – https://housing.com/news/home-loans-for-women-in-india/
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