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28 March, 2024 18:57 IST
Financial Planning
   
Women oriented financial products
Source: IRIS (26-MAR-14)

Women have always matched pace with their male counterparts in all walks of life and perhaps many a times have done better. Women’s success is not new if we go back to history with Jhansi Rani, Joan of Arc, Madam Currie, etc. to name a few.  Now today’s women rule every facets of life. Having said that it will be unfair to only pay respect to the professionally successful women; we pay respect to the womanhood because it is woman who brings life on earth, it is the mother who loves their child selflessly and sacrifices their roaring career for family and also stand to the occasion to take the baton, if the need arises.

Today's women have a mind of their own and they like to manage their own finances. Banks & Financial Institutions have lined up women-oriented products to the new increasing women working & non-working women. 

Let us evaluate these women-oriented financial products if they really offer value or are mere packing story.

1.  Savings Bank Accounts & Debit Cards-Marginally better than normal bank accounts. 

It is hard to differentiate in a commoditized product such as savings bank account & debit cards, most have similar features such as lower minimum balance, increased cash withdrawal limits, cash-backs on debit cards and reward points on use-age. Some banks offer add-on personal accident insurance cover ranging between Rs 1 lakhs - 5 lakhs.

Some banks have some tangible benefits features packed for the women account holders:

HDFC Bank has one additional features covering hospitalization expense arising due to accidents upto Rs 1 lakh for women account holders.

Kotak Mahindra Bank - Silk Account offers discount on lockers upto 35%

BOI Mahila Saving offers discounted health check-ups through partnerships.

ICICI Bank offers 25% discount on 'A' lockers rental for first year. Free Jewellery Insurance of Rs 0.50 lakhs to the Rajbank Stree Shakti.

Life Insurance - Added features at lower price for women:

Online term insurance for women costs less. Working women who contribute financially must have their own term insurance. 

Generally the Insurance premium for women is lower than men.

Aegon Religare offers most competitive premium.

It also packs some waiver of premium on Critical Illness and has riders especially on women related critical illnesses.                              

The above premium is before adding service for 30 year old non-smoker female for a tenure of 35 years with critical illness riders.

Does House-wife need Term Insurance? 

Life Insurance is nothing but Income Replacement. Generally thumb-rule states that if a house-wife is not the primary bread-earner and no one depends on her financially she may not buy a life insurance product (term insurance). However, I would like to sow a seed to ponder upon because "Life is uncertain and no longer marriages are made in heaven".  The annual premium for a fifty lakh cover may cost lower than buying a dress and in an unfortunate event of divorce or widowhood when fate forces to take on the responsibility.

Loans - Empowering women Entrepreneurship 

A lot of public sector bank offer women friendly schemes are aimed at empowering them. Some of them even offer loans without collaterals security, at concessional rates and for women-oriented profession such as setting up Creches, Beauty Parlour, and Private Catering Services. Few with differentiating features are:-

Bhartiya Mahila Bank has some exclusive products:

>Loans upto Rs 10 million for SME provided without collaterals.

>Loans exclusively for pursuing CA in association with ICAI and concessional on loan of 1% for setting up CA practice.

Central Bank sets up women entrepreneurship cell. Offers loan at concessional rate for business.
 
PNB
has five different schemes - Mahila Udyam Nidhi, Mahila Samriddhi, Financing Creches, Kalyani Cash schemes & Sashaktikaran Abhiyan for empowering various segments of women.

OBC has upto 2% concessions and no collateral security for loans upto Rs.1 million and in case of SSI no collateral security required up to Rs.2.5 million.

(Contributed by Tanwir Alam, Founder & CEO of Fincart)  


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