Compare SBI and HDFC Home Loan
Home loan is a mandate option for anybody in India with decent income because the prices in the real estate sector are on rising where the income levels of the people remained flat. There are many nationalised and private banks offering the home loans to customers. A wide range of offers will put into confusion. None other than comparison is the only solution to pick the best among the top leading banks in the country to avail a home loan. The comparison here is made based on the eligibility interest rate, processing fee loan tenure and prepayment charges. SBI holds 25% of market share whereas HDFC home loans hold 24.13% of market share. There is a minute difference between two in the terms of the market share. If you are looking to make a choice between two, the article may serve you as a guide to take an informed decision.
You will stand eligible to apply for SBI home loan when your age is between 18-70 years. The bank demands minimum 2 years of experience for salaried and 3 years of experience for self- employed to avail a home loan.
You can apply for HDFC home loan either individually or jointly and other requirements remain same as SBI.
Interest rate and loan tenure
Women will get low-interest rates on SBI home loans which is 8.60%-8.65% and others will be liable to bear 8.65%-9.00% depending on the loan amount taken. The loan tenure will be maximum of 30 years.
Interest rates for women will be from 8.65%-8.70%., for others, it is 8.70%-8.75%. repayment tenure is a maximum of 30 years.
Processing fee& prepayment charges
NIL processing fee till 31st march 2017(changes subject to bank discretion), no prepayment charges.
A processing fee will be 1.25%of the loan amount or 3000 whichever is higher. There are no prepayment charges if the loan is paid in full below 6 months. From 6 months to 5 years-1.25% of total loan amount, 5years- 10 years, 0.75% of loan amount, above 10 years no prepayment charges.
SBI home loan
As this is largest PSU run by the government in Indi, a line of trust is the major reason. You can fetch the loan at the low-interest rate when compared to any other banks in India. SBI home loans have strict legal verification in place, once the loan is approved by the bank, the borrower can be assured about the absence of legal issue in the project.
HDFC home loan
HDFC stands next to SBI when it comes to low-interest rate and it is calculated on diminishing balance. The bank has large loan tenure which is maximum of 30 years. HDFC home loan is available as the overdraft. The best part is there are no prepayment charges.
If you are looking for lowest interest rate and can bear with strict regulations, SBI home loan could be your option. HDFC home loan could be your choice if you want to get the home loan with flexible regulations.