At ongoing interest rates, SBI home loan EMI comes at Rs. 645 for a 30-year loan tenure as compared to HDFC bank which offers home loan EMI at Rs. 649 for 30 years. Many customers prefer SBI home loan because of lower interest rate as compared to HDFC bank.

How is an SBI home loan better than HDFC Home Loan?

Before opting for a home loan, customers must do a detailed comparison of both SBI and HDFC home loan options along with various terms and conditions. Understanding the differences between the two will help in making an informed decision. Each bank has different loan schemes with several pros and cons that must be evaluated carefully before choosing the best option. Some of the key differences between the home loans of the two banks are:

  • The interest rate of SBI home loan is 6.70%, lower than the lowest interest rate offered by HDFC at 6.75%. Hence, customers prefer SBI over HDFC bank.
  • When it comes to home loan charges like processing fees, both HDFC Bank and SBI charge the same amount. SBI charges a maximum of 0.35% of the loan amount as processing fees and HDFC bank has higher processing fees of 0.50% of the loan amount or Rs. 3,000, whichever is higher. Hence, customers looking for a higher loan amount can benefit from SBI home loan.
  • Since SBI is a public sector bank, the home loan interest rates are benchmarked to RLLR. In the case of HDFC bank, the home loan interest rates are benchmarked to PLR.
  • HDFC bank has an average customer rating of 4.5. SBI has an average customer rating of 4.2. Thus, HDFC bank enjoys a high customer rating due to better service focus, easy home loan application process and faster loan disbursal.
  • SBI offers an overdraft facility allowing borrowers to reduce the interest obligation by paying interest on the loan amount that is actually withdrawn or used. Therefore, it is preferred by self-employed individuals and businessmen who have a fluctuating income.

Loan borrowers can consider the above-mentioned points before deciding on a home loan offered by SBI and HDFC bank.