SBI vs Canara Bank Home Loan
Choosing between SBI vs Canara Bank home loans in 2025 means looking beyond interest rates. SBI offers rates from 8.00% and various loan products, while Canara Bank starts slightly lower at 7.95% with perks like free credit cards and lower fees. Both provide loans up to ₹5 crore with 30-year tenures.
SBI vs Canara Bank Home Loan: Which Offers Better Rates in 2025?
The right choice between an SBI vs Canara Bank home loan in 2025 can help you save thousands in interest payments. A look at these popular lenders shows some vital differences in their interest rates. SBI’s interest rates start at 8.00% and go up to 8.95%, while Canara Bank’s interest rates start from 7.95% to 8.95%.
SBI vs Canara Bank: Key Comparison Factors for 2025
Comparing SBI vs Canara Bank home loan options in 2025 requires looking beyond simple rates. Let’s get into the key factors that affect your long-term financial commitment.
| Feature | SBI Home Loan | Canara Home Loan |
| Interest Rates | 8.00% p.a. to 8.95% p.a. | 7.90% p.a. to 8.95% p.a. |
| Indicative EMI (₹) | Varies based on rate and loan amount | Varies based on rate and loan amount |
| Maximum Loan Amount | Up to ₹5 crores | Based on eligibility & property cost |
| Repayment Tenure | Up to 30 years | Up to 30 years |
| Processing Fees | Up to 0.35% of loan amount + GST (Min ₹2,000, Max ₹10,000) | 0.50% of loan amount + GST (Max ₹15,000) |
| Loan-to-Value (LTV) | Up to 90% | Up to 90% |
| Women Borrower Concession | 0.05% reduction | 0.05% concession in interest rate |
| Special Features | FlexiPay, Pre-approved options, Lower rates for women | Canara Home Loan Advantage, Top-Up Loan facility, Balance Transfer facility |
The Loan-to-Value (LTV) ratio shows these differences in the SBI vs Canara Bank home loan comparison:
- SBI offers up to 90% financing for loans up to ₹30 lakhs, 80% for ₹30-75 lakhs, and 75% for loans above ₹75 lakhs
- Canara Bank provides up to 90% for new properties (less than 10 years old) and 75% for older properties
In, SBI vs Canara Bank both banks’ special concessions could benefit you:
- SBI provides preferential rates based on CIBIL scores, with scores above 800 receiving the best rates
- Canara Bank offers women borrowers an interest rate that’s 0.25% lower than standard rates
Your effective rate in the Canara Bank vs SBI home loan comparison depends on your credit profile, loan amount, and relationship with the bank.
Product Offerings and Special Schemes
SBI vs Canara Bank home loan comparison shows that both banks provide a wide range of home loan products catering to different customer segments in 2025. You can pick the right financial partner by learning about their loan options that match your housing needs.
SBI’s Product Portfolio shines with its wide range of specialized home loan schemes. The bank’s Traditional Home Loans help with purchase/construction, and their SBI Flexipay Home Loan gives higher eligibility with step-up moratorium periods. The bank’s Tribal Plus scheme helps people living in tribal or hilly areas with repayment periods of up to 15 years.
Military personnel can get SBI’s Shaurya Home Loan, while senior citizens benefit from the Reverse Mortgage Loan scheme. SBI’s Pre-Approved Home Loan gives buyers better negotiating power with sellers.
In SBI vs Canara Bank home loan, Canara Bank’s Product Range features several distinct offerings. Their standard Housing Loan doesn’t have an upper limit on loan quantum and lets salaried applicants borrow up to 72 times their last drawn monthly gross salary. The bank’s Canara Kuteer scheme supports households with annual incomes up to ₹3 lakhs.
Notable specialized products include:
- Housing Cum Solar Loan – only Canara Bank offers this
- Home Loan for NRIs – with loan amounts up to 4-5 times annual gross income
- Canara Home Loan Plus – lets existing borrowers finance domestic needs and emergencies
Unique Features Worth Considering: SBI gives home loans as overdraft facilities to help you make the most of surplus funds. Canara Bank provides free credit cards for borrowers, and all home loan customers receive life insurance coverage. Canara Bank also has a 50% processing fee waiver up to June 30, 2025, as part of their Retail Loan Festival.
Your choice between SBI vs Canara Bank home loan depends on which specialized scheme better fits by analyzing through the home loan eligibility calculator your needs rather than just the interest rates and fees can be calculated.
Which Bank Gives You Better Value with Home Loans in 2025?
| Feature | SBI Home Loan | Canara Bank Home Loan |
| Interest Rate (Starting) | 8.00% p.a | 7.95% p.a |
| Loan Amount Benefit | Standard rates | Lower rates for loans above ₹75 lakhs |
| Processing Fees | Standard | 50% discount under Retail Loan Festival (till June 30, 2025) |
| Loan Tenure | Up to 30 years | Up to 30 years |
| Maximum Age at Loan Maturity | Up to 70 years | Up to 75 years |
| Customer Experience | Thorough but lengthy process | Faster with additional perks (e.g., free credit card) |
| Loan Security | Trusted and detailed documentation | Attractive offers but slightly less rigorous |
| Extra Perks | Reputation and reliability | Promotional benefits and no upper loan cap (income-based) |
| Best For | Buyers seeking long-term reliability | Value-seekers want lower costs and faster processing |
Conclusion
The comparison between SBI vs Canara Bank home loans in 2025 reveals some clear differences to help you choose better. Canara Bank has a lower starting interest rate of 7.95% compared to SBI’s 8.00%. This difference can save you money over a 30-year loan period. The bank also offers a 50% processing fee waiver until June 30, 2025, which means upfront savings even though their standard fee is higher than SBI’s.
In SBI vs Canara Bank home loans both banks let you borrow up to ₹5 crore with 30-year repayment terms. Canara Bank allows loans until borrowers turn 75, while SBI caps it at 70 years. This age limit difference matters a lot for older borrowers and people planning to invest later in their careers.
Your choice should depend on what matters most to you. Canara Bank might work better if you want the lowest interest rates and extras like free credit cards. SBI would be your choice if you appreciate the credibility of the bank and complete documentation despite marginally higher interest rates.
Take time to view your finances and align these characteristics with what you require. The home loan market continues to evolve up to 2025, so keep an eye out for new deals from both banks. In the SBI vs Canara Bank home loan comparison, both banks have their advantages depending on your needs, whether it’s interest rates, fees, or customer experience. The Canara Bank vs SBI home loan decision ultimately comes down to which factors—such as loan tenure, interest rate, or additional benefits—are most important to you.
