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Women homebuyers get preference under PMAY, interest concession by banks

Data indicates that the number of women applicants under PMAY have increased by 6 per cent over the last two years

March 08, 2018 / 01:15 PM IST
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On Women’s Day, let’s take a look at some of the gender-specific interventions by the government and banks to encourage women homebuyers to invest in property under their name. Under the Pradhan Mantri Awas Yojana (PMAY), the ownership of a house should mandatorily be in the name of the female member of the family. Many banks also offer special rates of interest to encourage women buyers. Besides, several state governments also offer an additional stamp duty waiver if the house is registered in a woman’s name.

  1. Concession in interest rate by banks

Most banks offer concessional rate of interest for women homebuyers to invest in property. Some prominent banks offer the following interest rates (the rates are only indicative) for women borrowers.

There are quite a few banks that provide special housing loan rates to women borrowers. The rates vary according to the profession and amount of finance applied by these borrowers.

“On an average, the women borrowers can get an interest rate concession of 0.05 per cent over their male counterparts,” said Rishi Mehra of

State Bank of India (SBI) offers home loans of up to Rs 30 lakh to salaried and non-salaried women borrowers at 8.35 per cent and 8.45 per cent, respectively. On the other hand, loans from Rs 30-75 lakh are priced at 8.50 per cent to 8.55 per cent and 8.65 per cent to 8.70 per cent for salaried and non-salaried borrowers, respectively. Whereas, salaried and non-salaried women borrowers can get loans above Rs 75 lakhs at 8.60 per cent to 8.65 per cent and 8.70 per cent to 8.75 per cent per annum, respectively.

Like SBI, HDFC Limited also provides special home loan rates to women borrowers. Loans of up to Rs 75 lakhs and above Rs 75 lakh can be availed by women borrowers at 8.35 per cent to 8.85 per cent and 8.40 per cent to 8.90 per cent per annum, respectively.

ICICI Bank also offers special rates to women borrowers. Salaried and self-employed women borrowers can get home loans at 8.45 per cent and 8.60 per cent, respectively, for loans up to Rs 30 lakh. Women borrowers seeking a loan of Rs 30 to Rs 75 lakh, Rs 75 lakh to Rs 5 crore and above Rs 5 crore would need to service at 8.75 per cent, 8.80 per cent and 8.90 per cent per annum, respectively.


State/UTFor WomenFor Men
Haryana4% in rural areas and 6% in urban areas6% in rural areas and 8% in urban areas
Source: KPMG. Data as on February 2018

  1. Tax benefits

There are some tax benefits of buying a home in the name of a woman that include a deduction of interest up to Rs 2 lakh every financial year, if the house is self-occupied. If a husband and wife are the joint owners of a property and if the wife has a separate source of income, then they can both can claim tax deductions individually. The tax benefit will depend on the ownership share of each co-owner, explains Singh.

Interest Subsidy Amount for Different Categories of Borrowers

Type of BorrowersInterest Subsidy Amount (In ₹)
Data as on December 2017