In today’s time and age, women are excelling at each and every area of life. They manage their homes while thriving at their career simultaneously. Today’s woman also has much higher purchasing power than ever before. She is also emerging as a decision maker in the economic and financial matters. In order to fully capture this emerging market’s potential, various private and public sector banks have designed special loan products for women. These loans meet specific needs of women folk. Let’s have a look at some of these financial products.
Auto Loan:
Most of the banks offer auto loans at attractive terms for various stratas of the society. However, India’s first bank exclusively for women, Bharatiya Mahila Bank, is negotiating with Tata Motors to offer cheaper auto loans to its women customers. While BMB is still in the talks, Axis Bank is already running a full campaign to lure women customers, who currently constitute a fifth of its auto loan portfolio. The bank plans to cut women special deals on major occasions.
Andhra Bank also runs AB Vanitha Vahan scheme for permanently employed or professional and self employed women. The loan is applicable for both the four wheelers as well as two wheelers. The minimum income criterion for a four wheeler is Rs. 100,000 per annum while for two wheelers, it is Rs. 60,000 per annum. The loan finances up to 90% of the road price of the vehicle.
Repayment schedule ranges from 12 months to 72 months for four wheelers and 12 months to 60 months for two wheelers. The newly purchased vehicle remains hypothecated to the bank during the tenure of the loan, as collateral. The bank also require some documents like driving license and salary slip to be submitted for receiving the loan.
Gold Loan Scheme:
Gold is every Indian woman’s weakness. However, gold also makes an interesting and attractive investment asset. Various banks have devised a number of loans around this precious metal. Bank of India runs Star Mahila Gold Loan Scheme. Under this scheme, women are given the loan for the purpose of buying gold and gold ornaments. There are certain stipulations such as the requirement of gold being hallmarked. The loan can also be used for purchasing gold coins or bars. It is open to working as well as non working women.
While working women, upon passing the income criterion can avail the loan individually, non working women without any income are required to get their spouse or any other close relative as a co-borrower. The maximum tenure of this loan is 60 months and the gold ornaments bought with the loan money are hypothecated as the security for the loan. Various documents which need to be submitted for availing this loan includes stamped invoice for the purchase of the gold. The bank also charges Rs. 500 as processing charges for the loans up to Rs. 50000. Loans above this amount attract 1.10 percent processing fee. The loan also attracts loan charges.
Karur Vysya Bank also runs the similar scheme under the name of KVB Mahila Swarna Loan. However, this scheme is only applicable to women with their own income through employment or business. The loan amount varies between Rs. 10,000 and Rs. 100,000. Loan needs to be repaid in 36 EMIs.
Professional Loans:
The banks are not promoting only consumer loans. Various banks have also floated loans for productive purposes such as setting up the business or promoting professional services. Central Bank of India has such scheme running under the moniker of Cent Kalyani. The loan is targeted at women professionals and entrepreneurs. The loan can be used for any business purpose including agriculture ventures.
The loan is available for small business as well as for professional services such as accountancy, doctors or engineers. Retail businesses are also eligible for these loans. Cottage industries running in the villages with population not exceeding 50,000 are also covered under this loan.
Women, who are interested in becoming independent, can use this loan to start their own business venture.
Personal Loan:
The banks have also launched specific personal loan schemes targeted at working women. UCO Bank runs Nari Sakthi loan scheme which aims to provide loans to salaried females. The bank offers discounted interest rate and the tenure of the loan is 5 years. The loan is available to women who are in permanent employment or have completed three years of service. The loan amount is limited to the lower of 90 percent of the total expenditure to be incurred or Rs. 200,000. The loan amount is generally determined on the basis of salary. However, any other regular income source for the borrower may also be taken into account.
The loan is mainly designed to meet irregular and emergency requirement of cash. The loan needs to be paid in 60 monthly instalments but minimum one year before the retirement of the borrower.
