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Home Loan Interest Rates: A Comparison between SBI Vs Kotak Mahindra Vs PNB Vs HDFC Bank

 

Whenever people think of home loans, they want to get them from the leading banks so that they can get the best terms for their loans. The most popular banks in the home loan category are SBI, HDFC Bank, PNB and Kotak Mahindra Bank.

Are you looking to buy a new home? This might be the right time as interest rates are at an all-time low; Banks are offering home loan interest rates starting at just 6.5% and if you have a good credit score, you could get such low-interest rates. 

India has around 35 banks, both public sector and private sectors, that offer home loans to borrowers to purchase or construct a new house, to buy a plot of land, for home furnishing, or home renovation. Home loans also come with long repayment tenure so that you can repay them at your pace. 

A Snapshot of Home Loans: SBI Vs Kotak Mahindra Vs PNB Vs HDFC Bank

SBI HDFC Bank PNB Kotak Mahindra
Loan Amount Generally, no upper limit on the loan amount. You can avail of up to 90% of the property value as the loan amount. 
Interest Rates 6.80% – 7.50% 6.60% – 7.65%  RLLR + BSP+ 0.15% – RLLR + BSP+ 1.05%

(around 6.95% – 7.85%) 

Salaried –

6.50% onwards

Self Employed – 6.60% onwards

Processing Fees 0.35% + Service Tax (Min Rs.2,000 up to a Max of Rs.10,000) Up to 0.50% of the loan amount (Max of Rs.3,000 + applicable taxes) 0.35% of the loan amount

(Min. Rs. 2,500 – 

Max. Rs. 15,000)

0.5% – 1% of loan amount
Repayment Tenure Up to 30 years Up to 30 years Up to 30 years Up to 30 years

 

Is SBI Good For Home Loan?

SBI is the leader in home loan disbursal. It has more than 30 lakh home loan subscribers who have achieved their dream of owning a home through SBI. Here are some reasons to choose SBI home loan

  • Offers the lowest interest rate for all customer segments.
  • Also has one of the lowest processing fees compared to any bank.
  • Thorough scrutiny of property documents to ensure that the property is free of any legal issues.
  • Different home loan products to suit different customer categories.
  • Home loans are also available as an overdraft product that allows flexible repayments.

Some of the home loan products from SBI are: 

  • SBI Regular Home Loan
  • SBI Flexipay Home Loan
  • SBI Balance Transfer Home Loan
  • SBI NRI Home Loan
  • SBI Privilege Home Loan
  • SBI Shaurya Home Loan
  • SBI Realty Home Loan
  • SBI Home Top-up Loan
  • SBI Tribal Plus

Is HDFC Home Loan better than Kotak Mahindra Home Loan?

HDFC is a renowned name in home loan lending. Home loans have been their primary product in lending and hence the bank has evolved with numerous features and benefits for the customers. Their Home Loan customer base is around 8.5 million and they have constantly offered innovative and customized home loan solutions to their customers. 

Kotak Mahindra Bank boasts of a digitally supported loan process that requires less documentation and lesser turnaround time. Their key focus is on customer engagement and to achieve this, they have features like ‘Search a Home’, ‘Talk to an Expert’ and ‘Doorstep document collection’ services. Kotak Mahindra bank too offers similar interest rates but capitalizes on the younger generation through their digital-friendly application process. 

What are the advantages of getting a home loan from PNB?

Punjab National Bank (PNB) has one of the largest networks in India with more than 36,000 delivery channels to cater to their customers. The home loans are an important offering by PNB to its lakhs of customers, helping them achieve their dream home project. 

Here are some advantages of getting a home loan from PNB:

  • You can choose your option of fixed or variable interest rates.
  • Processing fees are low.
  • They offer loans with less paperwork.
  • No pre-closure charges.
  • Convenient repayment options via both online and offline channels.
  • Application procedure that is open and transparent.

Being able to own a home is a source of great pride, so owning a home is high on the list of aspirations for the majority of Indians. When it comes to real estate, your home is the most expensive asset you own. As a result, fulfilling the decision to buy may be impossible without the assistance of a home loan.

A home loan is a large investment with a long-term commitment. To make matters worse, the terms of a home loan are perplexing. Finding the ideal home is important, but so is finding the ideal mortgage. The home loan you choose will be your commitment for a long time, so make sure you weigh all of the pros and cons of the home loan product before you get it.

 

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