Which Home Loan is Best SBI or HDFC? At current interest rates, SBI EMI mortgage for a 30-year loan mandate comes out to Rs 645 compared to HDFC Bank, which offers an EMI mortgage for 30 years at Rs 649. Many customers prefer SBI Real Estate Loans because of the lower interest rate than HDFC Bank.
How is an SBI home loan better than HDFC Home Loan?
Before choosing a mortgage, customers should compare SBI and HDFC mortgage loan options with different terms and conditions. Understanding the differences between the two will help in making an informed decision.
Each bank has other loan schemes with various advantages and disadvantages that should be carefully evaluated before choosing the best option. The significant differences between real estate loans from the two banks are:
SBI Mortgage has an interest rate of 6.70%, representing less than 6.75% of the minimum interest rate offered by HDFC. Hence, customers like SBI on HDFC Bank.
Regarding processing costs such as mortgage costs, HDFC Bank and SBI charge the same amount. SBI charges a maximum of 0.35% of loan treatment cost and 0.50% of the loan amount in HDFC Bank or more, depending on the loan amount. Hence, customers looking for higher volumes can benefit from SBI Mortgage.
Given that SBI is a public sector bank, the interest rates for real estate loans are the benchmark for RLRR. In the case of HDFC Bank, real estate loan interest rates are the benchmark for PLR.
The middle SBI customer note is 4.2. Thus, HDFC Bank has a high customer note due to better orientation of services, a more straightforward mortgage request process and faster loans.
SBI offers ease of overdraft which allows borrowers to reduce the interest liability by paying interest on the amount of loan used or reduced. Hence, it is preferred by self-employed workers and business people whose income fluctuates.
With the loans SBI and HDFC have shown, one can consider the points mentioned above before deciding on the mortgage the bank offers.
SBI, the largest public sector bank in India, is one of the main options for real estate loans. SBI now offers concessions for real estate loans to attract more real estate loan buyers. State Bank of India (SBI) announced a maximum interest rate of 30 bps and 100% rebate on processing costs in early 2021.
The bank is known as the market leader in the domestic finance segment. It continues to take measures to revive consumers’ sentiments by announcing various offers on real estate loans on several occasions.
Does SBI offer concession on home loan interest rates?
SBI now offers a higher interest rate concession depending on the amount of mortgage, the loan amount of the borrower and the property’s location. SBI mainly focuses on providing better interest rates to customers with reasonable reimbursements.
SBI real estate loan interest rates are based on credit rating. Prices generally start at 6.8%, capping the maximum of Rs. 30 lakhs and 6.95% for loans above Rs.30 lakhs. The bank offers interest rate concession of up to 30 bps in 8 metropolitan cities for loans up to a maximum of Rs. 50 million.
SBI facilitates mortgage loan requests through its YONO application. Customers can also apply using the bank’s website and benefit from an additional 5 bps concession. There is a 5 bp discount on the interest rates of real estate loans for women borrowers. Apart from this, a benefit of 5 bps is also available on the balance transfer.
What are the benefits of an SBI home loan?
Some of the main benefits offered by SBI Mortgage are:
- SBI Mortgage is available to employees and self-employed.
- Special prices are shown to female customers.
- The purchase will take the ownership hostage.
- The loan/value ratio can reach up to 90%.
- The tenure of the loan can vary from 5 to 30 years.
- Interest rates vary from 6.80% per annum. 7.50% per annum
Before requesting a mortgage, customers should check current interest rates and discount offers to guarantee maximum benefits.
Millions of home buyers across India prefer state Bank of India mortgages because of their attractive interest rate of 6.80% per annum. SBI also introduced a concession of 70 bps on interest rates on loans contracted at zero processing costs till March 31, 2021 and 70 bps.
The bank allows extension of the loan tenure to a maximum of 30 years so that the customers can benefit from a comfortable reimbursement period.
The cost of treatment on SBI Mortgage is 0.35%. It is calculated on the loan amount and applicable taxes. For borrowers, the bank offers an interest concession of 0.05% on the home loan. There are no hidden fees, and customers can benefit from full delivery of pre-paid costs.
SBI Home Loan Features & Benefits:
Here are some notable features of SBI-
- Interest rate 6.70% p.a.
- Flexible repayment tenure of up to 30 years
- Interest concession for borrower women
- Minimum processing fee of 0.40% on loan amount
- No prepayment fee on floating mortgage
- Multiple real estate loan plans to choose from
- The bank provides balance, recharge, and overdraft transfer facilities.
SBI Home Loan Eligibility:
SBI currently offers several real estate loan schemes with unique eligibility criteria. Customers who wish to request for SBI Mortgage must check the eligibility criteria to avoid rejecting the loan.
Customers can benefit from the maximum benefits of low-interest rates on SBI Real Estate Loans and realize their dreams of buying affordable homes. It also provides the facility for repayment of the loan.
HomeFirst is a tech housing financing company that provides affordable real estate loans to low and intermediate-income groups. The company gives loans to people who build or buy their first home.
Is Home Financing Company an NBFC?
Mumbai head office, Home First Finance Company (HFFC) Limited (MFL) is a non-banking financial institution registered with the Bank of India (RBI).
The company started its operations in 2010 and is currently valued at Rs 850 crore. The company has grown with a significant presence in various urbanized areas like Gujarat, Maharashtra, Karnataka, and Tamil Nadu.