Best Home Loans for Women

To encourage more women to apply for a housing loan as a sole applicant or joint applicant, many banks and lenders offer home loan benefits to ladies. Below, we've picked the best home loans for women based on the lowest interest rates and processing fees in the market, as well as the most generous eligibility criteria and EMI repayment plans.

Table of Contents

Our Picks for Best Home Loan for Women

Home loan interest rates determine the total cost of your housing loan, therefore it's important to compare rates of all banks before deciding on a lender. Below, we've showcased the top home loan lenders that offer the cheapest home loans for women.

Lowest Home Loan Interest Rates for Women

Lowest home loan interest rates for women from Union Bank, Bank of India, SBI, HDFC, and J&K Bank

Lowest Home Loan Interest Rates for Women

Lowest home loan interest rates for women from Union Bank, Bank of India, SBI, HDFC, and J&K Bank

Best Home Loan for Self-Employed Women

Consider this if you are a self-employed woman seeking the best rates

Maximum Loan Tenure 30 years
Processing Fee 0.50%, max Rs. 15,000

Union Bank of India offers one of the best home loans for women, specifically for self-employed or non-salaried female borrowers. Between offering the lowest interest rates in the market and generous home loan eligibility, the Union Bank Home Loan is the cheapest option for ladies, regardless of job position and CIBIL score.

Union Home Loan Interest Rates start at 6.85% for women with CIBIL scores above 700. This concessional rate of 0.05% can go a long way, especially if you take advantage of the bank's 30 year loan tenure.

Non-salaried women with lower CIBIL scores can also avail competitive rates between 6.95% and 7.35%. Though, your final interest rate will depend on the margin you wish to fund. For example, 75% funding of your property value will result in a lower interest rate than a 90% margin. There is no limit on your home loan eligibility as long as your home financing needs justify the amount you seek from Union Bank.

In addition to low interest rates, Union Bank of India has generous eligibility criteria. Unlike many banks, the Union Bank Home Loan is open to both resident Indians and non-resident Indians (NRI). Further, the bank's age requirements allow women from 18 to 75 years old to apply for a home loan. Considering many banks' age cut off is 65 years old, the Union Bank Home Loan stands out as an especially inclusive option for borrowers of all ages and backgrounds.

Another advantage is the flexibility in repayment. The Union Bank Home Loan has a moratorium period of 36 months for home purchases and construction loans. This is important for women who may face financial difficulties during their home loan process, and would need to take a break from equated monthly instalment (EMI) payments. Further, Union Bank offers multiple EMI repayment plan types, including a Smart Save option that allows you to pay your EMIs ahead of time to reduce your total payable interest amount.

Single women do not need a guarantor unless they are a non-resident Indian, in which case they would require at least one person to guarantee their home loan. If you are a woman seeking to apply for a home loan with a co-applicant, you must follow the requirements of Union Bank. Unmarried female applicants can have their mother or father apply as a joint applicant, while married female applicants can opt for their husband, son, daughter-in-law, unmarried daughter, father-in-law, or mother-in-law.

Though Union Bank of India has a slightly higher processing fee than its competitors — 0.50% of the total amount — the bank's low interest rates, inclusive eligibility criteria, and multiple repayment options make the Union Home Loan the best option for self-employed women.

Duration (Years)Processing FeeEffective Interest RateEMITotal Cost
10.50%6.85%₹32,763₹ 4,18,156
50.50%6.85%₹32,763₹ 19,90,780
100.50%6.85%₹32,763₹ 39,46,560
200.50%6.85%₹32,763₹ 78,88,120
300.50%6.85%₹32,763₹ 1,18,19,680

Based on an Rs. 50 lakh home loan over a 30 year tenure. Total cost includes processing fee, interest payable, and principal loan amount. Processing fee does not include GST or state tax.

Best Home Loan for Salaried Women

Consider this if you are a salaried woman seeking the lowest interest rates

Maximum Loan Tenure 30 years
Processing Fee 0.40% of loan amount (min of Rs. 10,000 and max of Rs. 30,000) + GST

SBI is one of the most popular home loan lenders for good reason. Between its low processing fees and interest concessions for women borrowers, the SBI Regular Home Loan is one of the cheapest housing loan options available to ladies.

The SBI loan charges the lowest interest rates to salaried women, from 6.95% to 7.15%. Your final interest rate will be determined by both the funding amount you are seeking, as well as your risk group. If you are considered high-risk, meaning you have a low CIBIL score, you will be charged an additional 0.10% rate. Even if you fall into a higher-risk category, SBI rates are still in the top 3 lowest interest rates of the banks we researched.

Like most banks, SBI allows a loan tenure up to a 30 year maximum. Additionally, the SBI age requirement is between 18 to 70 years old, making the SBI home loan a good option for all ages.

The SBI home loan for women also charges a relatively low processing fee at 0.40% of the total loan amount, with a minimum of Rs. 10,000 and maximum of Rs. 30,000. Processing fees are important to consider as they can significantly impact your total cost of borrowing.

Read More: SBI Home Loan Review

Below, you can find an illustration of your EMI payments and total cost of borrowing for an SBI home loan.

Duration (Years)Processing FeeEffective Interest RateEMITotal Cost
10.40%6.95%₹33,097₹ 4,17,169
50.40%6.95%₹33,097₹ 20,05,845
100.40%6.95%₹33,097₹ 39,91,690
200.40%6.95%₹33,097₹ 79,63,380
300.40%6.95%₹33,097₹ 1,19,35,070

Based on an Rs. 50 lakh personal loan over a 30 year tenure. Total cost includes processing fee, interest payable, and principal loan amount. Processing fee does not include GST or state tax.

Best Home Loan Fixed Rate for Women

Consider this if you are a woman seeking a fixed rate home loan

Maximum Loan Tenure 30 years
Processing Fee 0.50% of the loan amount or Rs. 3,000, whichever is higher

HDFC Home Loans with floating rates are comparable to SBI and Union Bank home loans, but HDFC Ltd. offers a unique fixed loan option to women who do not want to risk the fluctuations of a floating interest rate. Since most banks do not advertise their fixed rate home loan options or simply do not offer fixed rates, HDFC is the best choice for women interested in a consistent EMI payment.

HDFC TruFixed home loan interest rates range from 7.40% to 8.15%, making the HDFC home loan for women the cheapest fixed rate option amongst the loans we analysed. In addition to these low interest rates, HDFC processing fees are charged up to 0.50% of the total loan amount, which is standard compared to other lenders.

A potential drawback to this home loan option is the restrictive age requirements: HDFC home loans for women only cater to applicants between the ages 21 to 65. Further, HDFC home loans are meant for resident Indians — NRIs would have to apply under a different loan scheme.

It's important to note that the HDFC TruFixed home loan for women fixes the rate of interest for up to 2 years, in which the interest rate is then open to a possible increase or decrease.

Read More: HDFC Home Loan Review

Duration (Years)Processing FeeEffective Interest RateEMITotal Cost
10.50%7.40%₹ 34,619₹ 4,40,428
50.50%7.40%₹ 34,619₹ 21,02,140
100.50%7.40%₹ 34,619₹ 41,79,280
200.50%7.40%₹ 34,619₹ 83,33,560
300.50%7.40%₹ 34,619₹ 1,24,87,840

Based on an Rs. 50 lakh personal loan over a 30 year tenure. Total cost includes processing fee, interest payable, and principal loan amount. Processing fee does not include GST or state tax.

Best Home Loan for Women with Low Income

Consider this if you are woman with a low income

Maximum Loan Tenure 15
Processing Fee Waived

As per the Pradhan Mantri Awas Yojana government initiative, PMAY seeks to encourage low income borrowers and women to apply for housing loans. In fact, a woman applicant is mandatory to avail a PMAY interest subsidy.

All banks implement the PMAY scheme with the same interest subsidy and eligibility criteria, so you will have to compare home loan lenders by lowest interest rates and processing fees. Since Bank of India offers the lowest rate of 6.85% to ladies, a woman and her family will avail the cheapest PMAY-linked home loan at BOI.

It's important to note that PMAY benefits vary per income group, and that all groups are eligible for up to a 20 year tenure under this scheme. Below, you will find an illustration of the PMAY scheme for the Economically Weaker Section (EWS), or low income borrowers.

Subsidy Tenor20 years
Processing FeeWaived
BOI Interest Rate6.85%
PMAY Subsidy (%)6.50%
Total Cost Without PMAY₹11,03,502
Total Cost With PMAY₹ 6,11,929
You Save:₹ 49,15,73

How to Find the Best Home Loan

In order to find the best home loan, you will have to compare interest rates, processing fees, loan tenure lengths, and eligibility criteria of multiple banks. With that in mind, we've prepared a brief guide to help you along the process of finding the best home loan.

Choosing a Home Loan: Interest Rates, Fees and EMIs

Home loan interest rates determine your total cost of borrowing from the lender of your choice, therefore you will want to avail the lowest interest rate possible.

Most banks offer concessional interest rates to women and salaried individuals. Some also offer lower interest rates to government employees and borrowers with a high CIBIL score. If any of these qualifications apply to you, it's important to find a lender that provides you with benefits per your applicant type.

In addition to comparing interest rates, you also should carefully review the processing fees and other charges associated with your home loan. These fees can add up and significantly impact the total cost of borrowing. For example, most banks charge a processing fee of 2.00% of your total loan amount. Other banks may charge high fees for late payments and prepayments.

Finally, you should plan your EMIs by considering your interest rate type and loan tenure. Longer loan tenures allow you to pay smaller EMIs, as well as avail larger loan amounts. However, you will pay more interest over time with a long loan term.

Read more: How to Find the Best Loan

How to Choose Between a Fixed and Floating Interest Rate

Another way to plan your EMIs is by choosing a fixed interest rate on your home loan. Fixed interest rates remain the same throughout your loan tenure, which means you will pay the same EMI amount per month. This is a great option for borrowers who do not want to risk the market fluctuations of floating interest rates, which can rise and fall without any warning.

Generally, floating interest rates are lower than fixed rates, but there is always the chance that you will end up paying a higher rate after a market fluctuation. Therefore, your choice of interest rate type depends on the amount of risk you are willing to take.

Read more: Home Loan Interest Rate Guide

FAQ

Yes, single women can avail a home loan. Whether you are a single mom, a widowed woman, or a young professional, there are many home loan options for you. In some cases, a co-applicant is recommended to avail the lowest interest rate. You will have to check with your home loan lender to see who in your family is eligible to be your joint applicant.

Some banks like HDFC, SBI, and Union Bank offer 0.05% concessional interest rates to women. In addition, ladies who avail a home loan are eligible for women-only tax deductions and lower fees, like stamp duty charges. Finally, the PMAY scheme is designed to benefit women by making a female applicant mandatory to qualify.

Home loan interest rates for women start as low as 6.85% at lenders like Bank of India, though most banks begin charging at 6.95%. Depending on their job position and CIBIL score, women can avail rates up to 8.15% from major lenders like HDFC.

PMAY is a housing for all government scheme that requires a female applicant. Under this scheme, eligible families can avail an interest subsidy which is received as a deduction from the principal outstanding loan. Your home loan eligibility will be determined by your income group.

Methodology

We conducted our review based on information home loan data available online. We reviewed home loan products from more than 50 lenders which are listed below. We analysed data that we believed would be most relevant to potential borrowers including interest rates, tenures, fees, and eligibility requirements.

Lenders Reviewed by ValueChampion
Aavas Finaciers LimitedAditya Birla CapitalAllahabad BankAndhra Bank

Axis Bank

Bajaj FinservBank of BarodaBank of India (BOI)
Bank of MaharashtraCanara BankCentral Bank of IndiaCitibank
Corporation BankDBSDCB BankDena Bank
Deutsche BankDhanlaxmi BankDHFLEdelweiss
Federal BankGIC Housing FinanceHDFCHSBC
ICICI BankIDBI BankIDFC BankIIFL
India Overseas Bank (IOB)India Shelter Finance CorporationIndiaBullsIndusInd Bank
J&K BankKarnataka BankKarur Vysya BankKotak Bank
Lakshmi Vilas BankLIC Housing FinanceOriental Bank of CommercePNB Housing Finance
Punjab and Sind BankRBL BankReliance Home FinanceSBI
SIBStandard CharteredSundaram BNP Paribas Home FinanceTamilnad Mercantile Bank
Tata CapitalUCO BankUnion Bank of IndiaYES Bank
Natalia Sanchez-Kumar

Natalia Sanchez-Kumar is a Junior Research Analyst at ValueChampion, specialising in home loans in India. She is a History graduate of New York University and has worked in the area of social impact, Future of Work and socio-technological research in the US and India. She has co-authored policy proposals alongside the International Labour Organisation in Sri Lanka and the Maldives, as well as hosted a data privacy conference with Facebook in New Delhi.