My friend told me that if I take home loan in my wife’s name, there is concession for interest rate. I am planning to buy a new flat at Anna Nagar. How it is beneficial in terms of interest rates if I take a home loan in the name of my wife. Both of us are working
Some home finance companies such as State Bank of India, ICICI Bank, Tata Capital Housing Finance and LIC Housing Finance offer rate concessions to attract the woman borrowers. Basically home loans are available to woman at discounted rates so as to offer them ease of purchase. Usually a waiver 0.05% is given to the woman borrower.
Even though there are rate concessions for women borrowers you can sometimes save more if you are an existing customer of the bank or if your company is listed as Cat A or B with the bank. So a good home work before you make the decision is advised. It is ideal to check with the bank where you have salary account first. You can also compare various schemes as well as women oriented schemes online. It is easy to make a comparison now sitting at your home in this web age. There are many good schemes which are not properly advertised. You should carefully read and understand most of the home loan plans before you plunge into the same lest you will repent later on.
Many banks offer concessional interest rates for Home Loans if the primary borrower is a woman. These banks include State Bank of India, ICICI Bank and Axis Bank. The interest rates are about 0.5%-0.75% below the regular rates. The other terms such as the repayment period and the processing fee may also be lower than that of a regular Home Loan. Consider the SBI Her Ghar Loan, for instance. It has the following features.
Affordable Rate Of Interest:
SBI Her Ghar Home Loan for women comes at a concessional interest rate of 9.40% per annum. That means an EMI of only Rs. 834 per lakh when calculated for a period of 30 years.
Flexibility Of Repayment:
The maximum repayment tenure for SBI home loans is 30 years, or until the borrower reaches 70 years of age, whichever is earlier.
High Quantum of Finance:
After taking several factors into consideration, like the applicant’s income, assets and liabilities, property value, repaying capacity etc., SBI offers a high quantum of financing for Home Loans.
Hassle-Free Application Process:
With minimal documentation requirements, low processing charges and an online portal for application management, applicants can be assured of a hassle-free Home Loan application process.
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