Planning To Buy A Car? See How Women Are Getting Cheaper Loan Rates

Banks now give women slightly better rates on car loans. Not just interest cuts, but easier terms too. Here’s what’s really going on.

Ever noticed how some women get cheaper loans just because the car’s in their name? Strange, but true. A Business Standard report in October 2025 showed loan rates for female car buyers are up to 0.8% lower than usual. Also, up to 90% of the car’s on-road price gets financed if the applicant is a woman.

This isn’t some one-off trend. The Open Government Data portal (May 2024) shared steady growth in vehicle loans under personal finance, most of it linked to female borrowers rising fast.

Banks are slowly changing how they look at credit.

Why Are Banks Offering Women Lower Car Loan Rates?

This part is simple. Some banks offer small interest cuts for women. But they usually want the vehicle to be registered in her name.

According to SBI’s interest rate document (2025), women get a 0.05% reduction on some retail loans. It may not sound like much, but over five years, it adds up.

Many banks now treat female borrowers as less risky. They look at repayment habits. Credit behaviour. Stuff that builds trust over time.
 

So, this didn’t happen overnight. It’s been growing year by year.

What’s Behind This Sudden Focus on Women Borrowers?

Some articles only talk about interest cuts. But that’s not the full picture. Many women now get up to 90% of the car cost funded by banks.

Less money needed upfront. Easier entry. That part rarely gets a mention.

As per TransUnion CIBIL data (2025), 57% of women borrowers fall into Prime 3+ credit scores. For men, it’s 51%. That tells you why banks trust women with better terms.
 

These bits matter if you're thinking long-term. Lower rates. Less EMI. Slightly easier paperwork. That’s how women are getting better car loan offers.

How This Shift Shows Up in Past Reports

In an earlier report, small towns showed the biggest jump in credit use by women. That was just the start. Now, lenders are chasing that market with special schemes and, in some cases, zero processing fees. 

Even LoansJagat’s September 2025 coverage shows car-loan rates dropping (as low as 7.60% during the festive window) and some banks waiving fees, trends that help women borrowers secure slightly better deals when they know where to look. 

Conclusion 

Banks didn’t always offer this. But with Her Ghar Scheme (2022) for home loans, SBI gave interest cuts to women. The National Strategy for Financial Inclusion (2019–2024) also asked banks to build women-focused products.

What started with homes is now in cars. Quietly. Slowly. Still not perfect. But the shift is visible.
 

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LoansJagat Team

‘Simplify Finance for Everyone.’ This is the common goal of our team, as we try to explain any topic with relatable examples. From personal to business finance, managing EMIs to becoming debt-free, we do extensive research on each and every parameter, so you don’t have to. Scroll up and have a look at what 15+ years of experience in the BFSI sector looks like.