HDFC Bank vs PNB Home Loan: A Side-by-Side Comparison of Eligibility, Rates, and Repayment Terms

HDFC Bank and PNB bank are renowned private financial institutions in the country aiming to provide some of the best home loan offers. However, regarding home loans, certain differences make one preferable to the other, depending on your need. Some common home loans are HDFC home loan and PNB home loan. Both banks provide a wide range of home loan schemes for their borrowers, but there are some key differences between them that you should be familiar with before making a decision.  

Comparison between HDFC Bank Home Loan and PNB Bank Home Loan

Here is a quick comparison between both loans.

Interest Rate & Charges for Home Loan

HDFC home loan interest rates start at 8.95% to 9.90% per annum for women borrowers and 9.00% to 9.95% for others. On the other hand, PNB home loan interest rates start at 8.80% to 9.45% per annum. However, these rates can vary based on the loan amount, loan tenure, and the applicant’s credit score and income. Borrowers are always advised to confirm with the preferred bank for the most recent rates and understand the loan terms and conditions.

Processing Fees

HDFC home loan processing charges up to 0.50% of the loan amount or ₹3,000, whichever is higher, plus applicable taxes. Minimum Retention Amount: 50% of applicable fees or ₹3,000 + applicable taxes, whichever is higher. 

The variety of post-loan disbursement charges involved in HDFC home loan include: 

  • Legal or incidental charges
  • Repayment schedule charges 
  • Overdue EMI interest
  • Repayment mode change charges of Rs. 500
  • Payment return charges of Rs. 450 
  • Rebooking charges of Rs. 100
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The processing fee charged by the PNB home loan is currently up to 0.35% of the loan amount plus GST. It is a one-time, non-refundable cost that the lender levies to process the borrower’s application for a house loan. 

The variety of post-loan disbursement charges involved in PNB home loans are: 

  • Charges for legal or documentation fees 
  • Late payment fees 
  • Pre-payment penalties 
  • Other miscellaneous charges 

Eligibility Criteria

The borrowers must meet all the eligibility requirements to get their loan application process approved by the preferred bank. 

HDFC Home Loan

The eligibility criteria for an HDFC home loan involve the following: 

  • You should be between the age of 21 and 60 at the time of loan maturity. 
  • You should have a stable income and a good credit score. 
  • You should have a minimum of 3 years of work experience. 
  • You should have a good record of repaying loans and credit card bills. 
  • You should have a stable source of income, such as a job or business, to repay the loan. 
  • You should have a clear and marketable title to the property you wish to purchase. 
  • You should have all the required documents to apply for the loan.

PNB Home Loan

The eligibility criteria for a PNB home loan involve the following: 

  • The applicant should be between 18 and 70.
  • The applicant should have a regular income source. 
  • The applicant should have a good credit score. 
  • The applicant should have a stable work history. 
  • The applicant should have a good repayment track record for existing loans.

In addition to these general criteria, PNB may have specific requirements for the type of property being purchased, the location of the property, and the applicant’s income level. It is recommended to check the bank’s website or visit a branch for the specific details and documents required. 

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Submit All Necessary Documentation

Along with the above factors, borrowers must provide all required paperwork to the banking authority to complete their loan application process. 

HDFC Home Loan

The documents required for an HDFC home loan include the following: 

  • Identity proof (Passport, PAN card, voter ID, driving license, or Aadhaar card.) 
  • Residence proof (Utility bill, passport, or voter ID.)
  • Income proof (Latest salary slip, Form 16, or ITR.)
  • Bank statement (The latest six months’ statement of the applicant’s current account.) 
  • Property documents (All original property-related documents including, the sale agreement, NOC from society, and approved building plan.)

PNB Home Loan

The documents required for a PNB bank home loan include the following: 

Completed loan application form. 

  • Proof of identity (such as PAN card, voter ID, passport, etc.) 
  • Proof of residence (such as utility bill, voter ID, passport, etc.) 
  • Proof of income (such as salary slips, Form 16, bank statements, etc.) 
  • Processing fee cheque 
  • Property documents (such as sale deed, NOC from a builder, etc.)

Benefits of Availing of HDFC home loan

There are several benefits of availing of an HDFC home loan, some of which include: 

  • Competitive Interest Rates 
  • Flexible Repayment Options 
  • Quick Disbursal
  • Doorstep Service 
  • Customized Solutions
  • Balance Transfer Facility 
  • Home Loan Insurance 
  • Online Application

Benefits of Availing of a PNB home loan

Like HDFC bank, PND bank provides numerous benefits to its borrowers. Some of these are: 

  • Get finance for projects like building a house or buying a flat, buying a home that is still being built, buying a building lot, fixing up or renovating a house, and more. 
  • Subject to a few restrictions, women applicants receive an interest rate discount. 
  • Different societal groups have specific programs created for them, including government workers, economically disadvantaged groups, Gen-Next salaried individuals, and more. 
  • Get a repayment tenure of up to 30 years on home loans. 
  • The home loan schemes encourage the concept of ‘housing for all.’ 
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In conclusion, both HDFC Bank and PNB have a wide range of home loan products, but there are some key differences between them. Every borrower needs to compare both banks’ interest rates, fees, customer service, loan amount, and loan tenure before making a decision. Remember that the best option for you, whether an HDFC home loan or a PNB home loan, depends on your circumstances and financial goals. It is always recommended to consult with a financial advisor before making any big financial decision.

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  • Home Loan Interest Rates September 2023
    Axis Bank8.75% - 9.15%
    Bank of Baroda8.50% - 10.60%
    Citibank8.75% - 9.15%
    HDFC8.50% - 9.40%
    ICICI Bank9.00% - 9.85%
    Indiabulls Housing Finance Limited8.65%
    Kotak Bank8.85% - 9.40%
    LIC Housing8.50% - 10.50%
    Piramal Capital & Housing Finance10.50%
    PNB Housing Finance8.50% - 10.95%
    Reliance Home Finance8.75% - 14.00%
    State Bank of India/SBI9.10% - 9.65%
    Tata Capital8.95% - 12.00%
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