Women Enjoy Lower Home Loan Rates In India
Most banks and finance companies have identified women as the next target group that they want to reach out to. While each organization has its own strategy, the common idea is to offer a discount on home loan rates to women , where a woman is:
• The sole applicant or co-applicant in the home loan
• Sole home owner or first home owner in case of joint ownership
The discount provided to the borrower with respect to the home loan rates varies with each bank or finance company. Overall though, this trend is on the rise. Female customers keen on lower housing loan interest rates can change a few details in their home ownership and loan application, and then contact organizations that are primarily driving this trend. It is expected that other organizations will be picking it up soon too. Adding to the appeal, many banks and finance companies are also presenting great value-add-ons to their home loan products such as additional discount in the processing charges.
The main cause of concern for borrowers here, though, is that these organizations claim this discount trend as a limited time offer for new home loan applicants. So, you cannot avail this particular offer unless you apply for it in the specific time frame.
Why are these lenders offering discount in home loan interest rates , if others in India are not offering it as a regular practice? It is believed that the last quarter of the financial year might be the reason for this opportunity. Most organizations may have a lower credit growth than expected. Plus, the non-performing assets (NPA) may seem to grow. So, lenders want to strengthen their retail lending by offering this chance to women; who associate high-value to their homes and are consistent in their repayments.
This strategy allows women and their families to avail a home loan at much lower rates and lenders can also tap into the target audience which is dependable when it comes to their repayments.
Overall, this discount can be used well by female customers to expand their real estate portfolio or to buy a home for the family. The time-constraints, however, imply that if you don’t have a seller, required documentation and a good credit history in place, this discount may not be as rewarding. This is because the lenders will check your repayment ability and other documents before considering you for this loan.
