Best banks for home loans for women


Which are the banks from which borrowing would make better sense, as far as women home loan borrowers are concerned? We examine

If 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.

 

Hidden charges in home loans

Processing fee

Application fee

Legal fee

Conversion fee

Evaluation fee

Physical visit fee

Late payment fee

Prepayment fee

Part payment fee

Cheque bounce fee

Annual Statement fee

Document retrieval charges

 

Documents to be provided to get a home loan

Duly filled home loan application

3 passport-sized photographs

Photocopies of any proof of identity, namely, voter’s ID card, passport, or driving licence

Photo copies of any residence proof, namely, utility bills, passport, driving licence, etc.

Business address proof for non-salaried individuals

Bank statement of the past six months

Signature identification

Personal assets and financial liabilities statement

Details of other running loans

See also: Hidden charges associated with home loans

 

Factors that affect Home Loan EMI outgo

 

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 a 100 basis points make up for one percentage point.

SBI home loan interest rate

Rate of interest on home loanBest rate*Highest rate*
For salaried women6.65%7.05%
For self-employed women6.95%7.25%

*Rate applicability from May 1, 2021

Longest tenure: 30 years

Processing fees: 0.40% of the loan amount, subject to a minimum of Rs 10,000 and a maximum of Rs 30,000 with GST. For projects where the bank has a tie-up with the builder, the rate will be 0.40% subject to a maximum of Rs 10,000 plus taxes.

 

ICICI Bank

Apart from getting a lower rate of interest from this private lender, a female borrower will also enjoy ease of doing business at ICICI Bank.

ICICI Bank home loan interest rate

Rate of interest on home loanBest rate*Highest rate*
For salaried women6.70%7.95%
For self-employed women6.95%8.05%

*Rate applicability valid from March 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 home loanBest rate*Highest rate*
For salaried women6.75%7.80%
For self-employed women6.75%7.85%

*Rate applicability from March 4, 2021

Maximum tenure: 30 years

Processing fees: Up to 0.50% of the loan amount or Rs 3,000, whichever is higher.

See also: Home loan interest rates and EMI in top 15 banks

 

Union Bank of India

The difference between home loans 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 home loanBest rate*Highest rate*
For salaried women6.80%7.30%
For non-salaried women6.85%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 home loanBest rateHighest rate
For salaried women6.75%8.30%
For non-salaried women6.85%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 favourably 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 home loanBest rateHighest rate
For salaried women6.90%8.40%
For non-salaried women7.00%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 of up to 70 years of age.

Punjab National Bank home loan interest rate

Rate of interest on home loanBest rateHighest rate
For salaried individuals6.80%7.40%
For self-employed individuals6.80%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.

See also: Best banks to get your home loan in 2021

 

Citi Bank

Women looking for big-ticket loans to secure a luxury unit, will find this bank willing to lend to their requirement, with Citi Bank offering up to Rs 10 crores as 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 home loanBest rate
For salaried individuals6.75%

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 home loanBest rateHighest rate
For salaried women6.75%9%
For self-employed women7%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.

 

FAQs

What is the difference in home loan rates for men and women?

Most banks offer women a rebate of five to 10 basis points on interest rates. This means that if the lowest rate at a bank is 6.90%, it would offer women the loan at 6.85% annual interest.

What are the best public banks for women to secure home loans in 2021?

Going by the interest rates, SBI, HDFC, ICICI Bank and PNB are currently the best banks for women home loan borrowers.

Do banks give 100 percent home loans?

Banks and housing finance companies never finance 100% of the cost of the property as loan. Generally, financers ask the borrower to arrange 10%-30% of the cost from their own funds.

 

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