Home loans rate cut: Banks offer 'best' home loans rate for women but what you save is nothing really
Banks always offer a slightly cheaper interest rate for home loans for women borrowers.
With banks like State Bank of India (SBI), ICICI Bank and HDFC Bank reducing their home loan interest rates for loans up to Rs 30 lakh, offers for women borrowers have been sweetened further.
Since last week, the banks have been reducing home loan rates to give a push to Prime Minister Narendra Modi's vision "Affordable Housing to all by 2022".
Now, the home loan rates for women is at 8.35% for loan up to Rs 30 lakh and for others it is 8.40% on the same amount.
So, if you a woman and are planning to buy a house, is this the right time?
To answer this, let's look at its benefits: Low interest rate which means lower EMIs, lesser interest outgo and hence more savings.
Rishi Mehra CEO of Wishfin.com, gives an example:
Let’s have a better understanding with a comparative chart showing the difference between women borrowers and others. The below calculation is on the home loan of Rs 30 Lakh for a tenure of 20 years.
From the above example, though the EMI difference is not that high, but if you look at the interest outgo, you can save an amount of Rs. 22,691 for the entire duration of two decades of the home loan.
Clearly, Rs 22,691 saving over 20 years of a home loan of Rs 30 lakh doesn't convert into much of a saving, does it?