Should I take a home loan from HDFC or SBI?

3 min read

Should I take a housing loan from HDFC or SBI

SBI or State bank of India has online portal where you can get your home loan statement. The same way, you can get a home loan through the HDFC Bank provided you know HDFC Home Loan Rates and HDFC Home Loan eligibility. HDFC Home Loan Calculator lets you know the rate of interest and tenure of the loan, etc.

SBI is one of the oldest financial institutions of India and has wide acceptance and respect among citizens. The SBI offers home loans to people who wish to purchase homes on loan at an affordable interest rate. It also assists in purchasing a plot of land, constructing a house, etc. there is easy EMI system on repayment of the loan and there are other attractive benefits too.

The state bank of India has online portal. You can get your SBI home loan statement or certificate of interest on this portal. It is important for you that once you get the home loan, you should keep track of your EMIs and other pieces of information from its portal. SBI home loan statement and interest certificates can be accessed online.

  • You should visit the link onlinesbi.com/personal to manage the official website. You can log in after giving relevant details.
  • In the second step, you will reach the tab named as enquiries. Here you can select the option “Home Loan Statement”.
  • Now you can select the home loan account attached with the statement.
  • Now, you can print or download the SBI home loan interest certificate.
  • For availing SBI home loan, there is a certain eligibility criterion that needs to be fulfilled by the borrower. Firstly, he should be an Indian resident or NRI. Secondly, he needs to be more than 18 years of age at the time of applying for a loan. Also, the repayment must be completed to a maximum age of 70 years.

Which is a better bank for Home Loan – SBI or HDFC?

The EMI of SBI is lower at around Rs 600 on a loan for 30 yrs whereas HDFC with a minimum EMI of Rs 665 for 30 yrs. Average customer rating of SBI is higher than all other banks. From this perspective, it is better to opt for SBI home loan.

HDFC offers eligible customers HDFC plot loan with interest rates ranging from 7.05% p.a. to 8.10% p.a. The maximum amount of the loan offered can be 80% of the property cost. The loan processing fee is somewhere between 0.50% – 1.50% on the amount of loan. This excludes the applicable taxes. The period for repayment of loan extends up to 15 yrs. The plot loans by HDFC are for both self-employed and salaried individuals. It comes with attractive interest rates.

How does SBI Home Loan compare with HDFC Home Loan?

You should do a comparison of home loan between SBI and HDFC banks. You should look into all loan terms and conditions to know the difference and then you can make a decision. Every bank has its own merits and demerits which have to be evaluated before choosing the bank from which to take the loan. You should go for the best housing loan rates. In any case, SBI is home loan low-interest bank.

  • The lowest interest rate of SBI is lower than that of HDFC bank. SBI offers cheaper loan options. SBI charges a lower processing charge compared to the same charged by other banks. SBI charges a processing fee of 0.20% while HDFC charges @ 0.25%.
  • If you want to go for a higher loan amount, you should go for HDFC because its higher processing fee is lower than that of SBI.
  • SBI being a public sector bank, its home loan rates are benchmarked with RLLR. For HDFC, the home loan rates are benchmarked to PLR.
  • HDFC has customer-rating of 4.4 while SBI rating is 4.1. It shows that HDFC does better customer service compared to SBI.
  • SBI scores over HDFC in one feature and that is its overdraft policy or facility. The customers will be charged interest on the loan amount utilized, not on the whole amount taken as loan. 

State Bank of India vs. HDFC Home Loan

Category

SBI

HDFC

Purpose of Loan

SBI offers home loans to salaried + self-employed applicants.

The loan can be utilized for purchase of a house already built or house under-construction.

SBI offers home loans for renovation of an existing home.

HDFC gives home loan to people both salaried and professionals.

The loan can be to buy an existing house or construct a new home.

HDFC has explicit loans for farmers, agriculturists, etc.

HDFC offers home loans for individuals belonging to various sections of society.

Amount of Loan

Rs.5 L – Rs.10 Cr

Up to Rs 10 Cr

Interest Rate (Annual)

6.95% – 7.50%

6.95% – 8%

Tenure of Loan

Up to 30 yrs

Up to 30 yrs

Eligibility of Applicant (Age)

At least 18 yrs of age and not > 70 yrs.

At least 18 yrs and < 65 yrs.

Prepayment charges Applicable

NIL

  • Nil for a variable rate of interest.
  • For fixed-rate and non-individual borrowers, 2%.

Processing fee charged

Min Rs.2,000

Max Rs.10,000

(exclusive of taxes)

Up to 0.50% of the loan amount or

Rs.3,000 (whichever is higher)

Pros

  • Competitive interest rates
  • No prepayment charges
  • Long tenure for repayment
  • For women applicants special concession on the rate of interest
  • Home loan as overdraft also
  • Lowe rates of interest
  • For women lower EMIs as a special promotional campaign
  • Long tenure for repayment
  • Loan Approval even before property selection
  • No hidden charges

Cons

The max loan amount lower as compared with HDFC bank

Higher rates of interest compared to State Bank of India

Documentation required

  • Proof of residence
  • Proof of identity
  • Property documents like NOC for construction, certificate of occupancy, etc.
  • Last 6 months Bank statement
  • Documents for proof Income like salary slips, copy of Form 16, IT returns, etc.
  • Proof of residence
  • Proof of identity
  • Last 6 months Bank statement
  • Form 16
  • Proof of qualification (educational)
  • Latest IT returns of self and business or salary slips
  • Documents related to the property like a letter of allotment etc.

Process for Applying

Online or Offline Applications for home loans

Online or Offline Applications for home loans


Also read : Home Loan Calculator- Things you should know