Women car buyers get better loan deals: Up to 0.8% lower rates, 90% funding

Banks offer women exclusive car loan perks: lower rates, higher funding

Indian banks are increasingly offering women car buyers exclusive benefits on vehicle loans, including lower interest rates, reduced processing fees, and higher loan-to-value (LTV) ratios. These concessions are part of a wider industry effort to make vehicle ownership more affordable for women and encourage their financial participation.

 

What benefits do women borrowers get?

According to Amit Setia, chief business officer, car loans at Capri Loans, women car loan applicants are offered “an interest rate concession of around 5-10 basis points compared to standard rates, lower processing fees, and flexible repayment options that provide greater financial comfort.”

 

He adds that funding can even be extended up to the on-road price of the vehicle, minimising the upfront cost for buyers. The application process is often simplified with minimal documentation and faster approvals.

 

 

Data from public sector banks backs this trend. For instance, Canara Bank offers up to 0.50 per cent lower rates and 90 per cent on-road price funding.

 

Eligibility and how to apply

To avail of these benefits, the loan must be applied for with the woman as the primary applicant, and the vehicle should be registered in her name, Setia explains. These conditions ensure that both the financial advantage and ownership remain with the woman borrower.

 

Eligibility criteria remain standard. Valid KYC documents, proof of income, credit score (preferably above 750), and repayment track record. Salaried and self-employed women between 21 and 65 years of age can apply.

 

Why are banks offering these schemes?

“These special car loan schemes are designed to foster financial independence, increase participation in the automotive market, and recognise women’s credibility as responsible borrowers,” Setia says.

 

He adds that beyond cost benefits, such initiatives empower women as asset owners and enhance their financial inclusion. With the RBI’s repo rate stable at 5.5 per cent, lenders are using these gender-specific offers and festive waivers to expand credit reach while supporting women’s economic mobility.