In the world of real estate finance, today’s choices shape your financial tomorrow. The decision between SBI vs HDFC home loans is pivotal, influencing your ability to buy your dream home, refinance, or optimise real estate investments. In the next few minutes, we’ll simplify this complex decision-making process, offering clarity and tailored guidance for first-time homebuyers, refinancers, and real estate investors. Read on to simplify your ideal home loan journey.
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A home loan comparison between SBI and HDFC can help you decide which lender offers the best interest rates and features for your needs. Here’s a breakdown of key features and differences between SBI and HDFC home loans to help you make a well-informed decision. Here’s a breakdown of key features and differences between SBI and HDFC home loans to help you make a well-informed decision.
| Feature | SBI Home Loan | HDFC Home Loan |
| Purpose | Purchase of existing or under-construction homes, renovation, extension. | Purchase of homes, construction, renovation, with specific loans for various profiles. |
| Eligible Profiles | Resident and Non-Resident Salaried and Self-Employed Individuals | Resident and Non-Resident Salaried and Self-Employed Individuals |
| Age Criteria | Min: 18 years, Max: 75 years | Min: 18 years, Max: 65 years |
| Loan Amount | Up to Rs.10 crore or up to 90% of the property value | Up to Rs.10 crore or up to 90% of the property value |
| Loan Tenure | Up to 30 years | Up to 30 years |
| Rate of Interest | Starting at 7.90% onwards | Starting at 8.00% onwards |
| Processing Fee | 0.35% – 0.50% of the loan amount, minimum Rs. 2,000, maximum Rs. 10,000 + applicable taxes | Up to 0.50% of the loan amount or Rs. 3,000 (whichever is higher) |
| Prepayment Charges | No fees for prepayment on floating rates. | No prepayment charges for floating rates |
| Pros | Competitive interest ratesNo prepayment charges for floating ratesLong repayment tenureSpecial interest concession for women applicants (5 basis point concession for women borrowers)Availability of overdraftNo hidden chargesTop-up, overdraft, and balance transfer optionsAttractive Tax benefitsInterest charges on daily reducing balance | Competitive interest ratesLower EMIs for women under promotional campaigns (Interest rate concession for women borrowers)Long repayment tenureLoan approval before property selectionNo hidden chargesMultiple loan repayment optionsQuick documentation processAttractive Tax benefitsTop-up, overdraft, and balance transfer facilities |
| Cons | – Maximum loan amount may be lower compared to HDFC – Documentation requirements | – Higher interest rates compared to SBI |
| Documents Required | Completed application formPassport size photographsEmployer Identity Card (for salaried applicants)Proof of IdentityProof of ResidenceProperty DocumentsAccount Statement: Last 6 months’ bank account statements and loan account statement of the last year (if applicable)Proof of Income (For Salaried):Salary Slip/Salary Certificate of the last 3 monthsForm 16 for the last 2 years Returns for the last 2 financial yearsProof of Income (For Non-Salaried):Business address proofIT returns for the last 3 yearsBalance Sheet & Profit & Loss A/c for the last 3 yearsBusiness License Details (or equivalent)TDS Certificate (Form 16A, if applicable)Certificate of qualification (for C.A./Doctor and other professionals) | Completed application formPassport size photographsEmployer Identity Card (for salaried applicants)Proof of IdentityProof of ResidenceProperty DocumentsAccount Statement: Last 6 months’ bank account statements and loan account statement of the last year (if applicable)Proof of Income (For Salaried): Salary Slip/Salary Certificate of the last 3 monthsForm 16 for the last 2 years Returns for the last 2 financial yearsProof of Income (For Non-Salaried):Business address proofIT returns for the last 3 yearsBalance Sheet & Profit & Loss A/c for the last 3 yearsBusiness License Details (or equivalent)TDS Certificate (Form 16A, if applicable)Certificate of qualification (for C.A./Doctor and other professionals) |
| Home Loan Schemes | SBI Home Loan to Non-SalariedSBI Balance Transfer Home LoanSBI Pre-approved Home LoanSBI Flexipay Home LoanSBI Shaurya Home LoanSBI Corporate Home LoanSBI Tribal PlusSBI Privilege Home LoanSBI Home Top Up LoanSBI Bridge Home LoanSBI Regular Home LoanSBI NRI Home LoanSBI Smart Home Top Up LoanSBI YONO Insta Home Top Up Loan | HDFC Home LoanHome Extension LoanRural Housing LoansPradhan Mantri Awas YojanaThe HDFC AdvantageHDFC Plot LoansHDFC Reach LoanHome Improvement LoanSpecial Home Loan for AgriculturistsHDFC Home Loan for NRI/PIO |
| Application Process | Completed application formPassport size photographsEmployer Identity Card (for salaried applicants)Proof of IdentityProof of ResidenceBank account statement for the last 6 monthsProof of Income (For Salaried):Last 3 months’ Salary SlipsLast 6 months’ Bank Statements showing salary creditsLatest Form-16IT returns proof of Income (For Non-Salaried):CA-attested Income Tax Returns (ITR) for the last 3 Assessment YearsCA-attested Balance Sheet and Profit & Loss Account Statements for the last 3 yearsLast 6 months’ Current Account Statements of the business entitySavings Account Statements of the individualProperty-related documents like allotment paper | Online or by visiting an HDFC branch. Follow this link. |
| Customer Service | Toll-Free Number: 1800 112 211/1800 425 3800 Email ID: homeloan.complaints@sbi.co.in | Missed Call Service: +91-9289200017 SMS: HDFCHOME to 56767 |
The major difference between the SBI home loan interest rate vs HDFC is that SBI home loan interest rates are typically slightly higher than HDFC, but both offer competitive rates in the market.
When exploring the options for home loans, such as SBI Home Loan Interest Rates and HDFC Home Loan Interest Rates, it’s essential to consider your financial goals, eligibility, and the impact these rates can have on the overall cost of your home loan.
However, one disadvantage of HDFC home loans can be their interest rates, which may be higher compared to other lenders.
Home loan balance transfer between these two options can also be a smart financial move to reduce your interest rates and save on your mortgage.
Read: Home Loan Top-Up: Interest Rate, Eligibility and Process
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The choice between SBI vs HDFC home loans holds immense importance in your real estate journey. Evaluate your specific needs, keep in mind the pros and cons, and make an informed decision. If you’re troubled about how to figure these out, feel free to reach out to NoBroker Home Loan services today. We can help ensure your home loan journey is smooth and efficient.
Frequently Asked Questions
Q. What is the key difference between SBI Home loan vs. HDFC home loan?
Answer: The primary difference between SBI and HDFC home loans lies in their offerings, such as interest rates, eligibility, and features.
Q. Why SBI home loan is better than other banks?
Answer: SBI is known for competitive interest rates on home loans. They offer various home loan options to suit different needs and budgets. SBI has an extensive branch network, making it easier for loan processing and interaction. And it is a trusted and well-established bank, offering peace of mind to borrowers.
Q. Why my SBI home loan interest rate is high?
Answer: A major factor influencing your interest rate is your credit score. Lower credit scores indicate a higher risk for the bank, so they typically charge a higher interest rate to compensate. The loan amount and tenure can affect the rate. Bigger loans and longer repayment periods might come with slightly higher interest rates.
Q. Which bank is best for a home loan?
Answer: Research and compare current interest rates offered by various banks and housing finance companies (HFCs). SBI, HDFC, Axis Bank, LIC Housing Finance, and Kotak Mahindra Bank are some prominent players known for competitive rates.
Q. Are there specific home loan schemes offered for home loan comparison between SBI vs HDFC?
Answer: Both SBI and HDFC offer various home loan schemes designed to cater to different needs. It’s essential to explore their options to find the one that fits your requirements.
Q. How do HDFC home loan vs SBI home loan differ when it comes to the maximum loan amount available?
Answer: HDFC and SBI both offer a maximum loan amount, but these limits may differ. For precise details on the maximum loan amount available, it’s advisable to visit their official websites or contact their respective customer service teams to ensure you have the most current and accurate information.
Read: BOB Home Loan Calculator – Understand your Home Loan Better
