Many banks and non-banking financial companies (NBFCs) in India offer special schemes for women with the aim of promoting empowerment. These schemes provide a range of benefits and incentives to women borrowers, enabling them to achieve their goals and aspirations. However, despite the availability of these schemes, a 2020 report by the World Bank’s International Finance Corporation revealed that only 17% of women entrepreneurs in India were aware of these financial benefits.
In this context, it becomes very important for women to know what financial benefits they can avail. Take a look at some of the schemes offered by banks and NBFCs to women.
Major banks like State Bank of India and Canara Bank offer lower interest rates on loans to women borrowers under their special schemes. For example, Canara Bank offers home loans at 8.85% interest to women borrowers as compared to 9.25% interest for other borrowers.
Similarly, women taking home loans from SBI can avail a concession of 5 basis points on their interest rates. By providing such incentives, these banks aim to support and encourage women to pursue their financial goals and aspirations.
HDFC also offers a discount of 5 basis points on home loans to women. The interest is dependent on factors such as the loan amount and credit score. People who have a higher credit score are more likely to get a lower interest rate.
Many NBFCs also offer concessional home loan rates to women. Take the example of Bajaj Finserv, which offers a substantial amount of Rs 40 lakh to women. No collateral required.
The interest rates offered by NBFCs may vary depending on the loan tenure, income level, credit score, loan amount and other criteria. Some NBFCs also offer special schemes for single women borrowers or entrepreneurs, such as lower interest rates on business loans. Borrowers should have a detailed look at the terms and conditions offered by different banks and NBFCs before deciding to avail the loan.
Apart from banks and NBFCs, the government also gives some relief to women in terms of tax exemption. In some states, for example, in Uttar Pradesh, women have to pay less stamp duty on property registration. This concession can be from 1 to 2 percent.
There are many special schemes for women to achieve their financial independence. But, before availing any loan, borrowers must read the fine print and understand the full range of concessions that they can avail.