State Bank of India and HDFC Ltd are leading in the housing finance segment of the country. Their vast range of home loan products and competitive interest rates can make it difficult for customers to take a pick. This comparison between the home loans provided by the two banks illustrate the distinctions in the home loan offers to help customers make a sound decision.
|Category||SBI Home Loan||HDFC Home Loan|
|Purpose||SBI home loans cater to both salaried and self-employed applicants. The loan can be used to purchase an already-built house or an under-construction property. SBI home loans can also be used for home renovation.||HDFC offers home loans that help people from different walks of life buy or construct a home. They have specific loans that cater to farmers, agriculturists, etc. HDFC offers home loans for both salaried and self-employed individuals.|
|Loan Amount||Rs.5 lakh – Rs.10 crore||Up to Rs 10 crores|
|Rate of Interest||6.95% – 7.50% p.a.||6.95% – 8% p.a.|
|Loan Tenure||Up to 30 years||Up to 30 years|
|Eligibility||Applicant must be at least 18 years of age and not more than 70 years old.||Applicants must be at least 18 years old and less than 65 years old.|
|Processing fee||Minimum of Rs.2,000 and maximum of Rs.10,000 (exclusive of taxes)||Up to 0.50% of the loan amount or Rs.3,000 (whichever is higher)|
|Cons||The maximum loan amount is lower when compared to HDFC bank||Higher interest rates than State Bank of India|
|Application process||Applications for SBI home loans can be made online or by visiting their branch||Application for HDFC home loans can be made online through their website or by visiting their branch.|
When planning to take a home loan, it is crucial to compare between different lenders and their offers. Comparing the loans helps customers to find an offer that fits their budget and requirements. This step also helps customers improve their product knowledge.
State Bank of India’s home loans have helped over 30 lakh families in India afford their dream homes. The bank is deemed as the largest mortgage lender in the country and offers a wide product range with low processing fees, lowest interest rates, no prepayment charges, and without any hidden costs. HDFC Ltd, on the other hand, is also regarded as one of the leading banks in the country. They have provided home loans to 63 lakh applicants since the inception of their housing finance wing in 1977.
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