HDFC vs ICICI Home Loans: A Comprehensive Comparison of Fees, Repayment Options, and Customer Service

Last Updated : March 3, 2023, 3:32 p.m.

Obtaining the best home loan at an affordable slab can take time and effort among borrowers. However, two popular options among borrowers in India are HDFC and ICICI. HDFC home loan and ICICI home loan offer a range of features and benefits, but which one is better will depend on your specific needs and financial situation. In this article, we’ll take a closer look at HDFC and ICICI home loans to help you make an informed decision.

Comparison between ICICI Bank Home Loan and HDFC Home Loan

Here are certain parameters that a borrower must consider before applying for a home loan in any of the two stated banks. These are:

Loan Amount

The loan amount is considered the most important parameter when applying for a home loan application. Each bank has its eligibility criteria for the loan amount. HDFC offers a maximum loan amount of up to 90% of the property value, while ICICI offers a maximum loan amount of up to 80%.

If you’re looking to borrow a large sum of money, an HDFC home loan may be a better option. However, an ICICI home loan may be a more suitable choice if you’re looking to borrow a smaller amount. ICICI and HDFC home loans offer similar maximum loan amounts, up to Rs. 3.5 crore. However, HDFC home loan offers a higher maximum loan-to-value (LTV) ratio of up to 90% compared to ICICI home loan , which is up to 80%. It means that with an HDFC home loan , you can borrow up to 90% of the property value, while with an ICICI home loan , you can borrow up to 80% of the property value.

Repayment Options

HDFC home loan and ICICI home loan offer a range of options. HDFC allows borrowers to choose from various repayment plans, including fixed, floating, and flexible interest rates.

ICICI also offers a range of repayment options, including fixed and floating interest rates and a step-up repayment plan. This plan allows borrowers to start with a lower EMI and gradually increase it as their income increases.

Both ICICI and HDFC home loans offer a range of flexible repayment options. However, HDFC home loan offers a slightly wider range of repayment options, including making part payments or prepaying the loan without any charges. ICICI home loan also offers similar options but with some charges.

Processing Fee

Another important consideration when choosing a home loan is the processing fee. HDFC charges a processing fee of up to 1% of the loan amount. At the same time, ICICI charges a fee of up to 0.5%. If you choose an HDFC home loan , you’ll likely pay more processing fees than an ICICI home loan . The processing fee for an ICICI home loan is generally higher than that for an HDFC home loan .

For example, as of 2021, the processing fee for an ICICI home loan is 0.50% of the loan amount, while the processing fee for an HDFC home loan is 0.25%. If you were to take an Rs. 30 Lakhs loan, the processing fee for an ICICI home loan would be Rs. 15,000, while the processing fee for an HDFC home loan would be Rs. 7,500.

Interest Rates

Another important parameter to consider when applying for a home loan is the interest rate. ICICI home loan interest rates are generally lower than HDFC home loan interest rates. For example, as of 2021, the interest rate for an ICICI home loan for a woman borrower with a loan amount of up to Rs. 30 lakh is 9.00%, while the interest rate for a similar HDFC home loan is 8.65%. This difference may seem insignificant, but a 20-year loan can add up to a significant amount.

Thus, when comparing the interest rates of these two banks, HDFC offers competitive interest rates generally lower than those offered by ICICI. If you choose an HDFC home loan , you’ll likely pay less in interest over the life of your loan. However, it’s important to note that interest rates can change over time, so it’s always a good idea to check with both banks before making a final decision.

Customer Service

In terms of customer service, HDFC and ICICI have a reputation for providing good customer service. Both banks have a wide network of branches and ATMs across the country, making it easy for customers to access banking services. They also offer a variety of digital channels, such as mobile banking and internet banking, for customers to manage their accounts and make payments.

However, HDFC home loans may have a slight edge in this area, as they have a larger number of branches and ATMs across the country. It means that it may be more convenient for you to visit an HDFC branch or ATM if you need to pay or have a question about your loan.

Conclusions

In conclusion, ICICI and HDFC loans offer a range of features and benefits, making it difficult to decide which is better. However, regarding interest rates, HDFC home loan rates are slightly higher than ICICI home loan rates. On the other hand, ICICI bank charges a higher processing fee compared to HDFC charge sheet. HDFC home loan offers a higher maximum loan-to-value ratio and a wider range of repayment options. Choosing between an ICICI home loan and an HDFC home loan will depend on your financial situation and priorities. It is recommended that you compare the terms and conditions. Ultimately, the best home loan for you will depend on your specific needs and financial situation. It’s important to compare the terms and conditions of both HDFC home loan and ICICI home loan to find the one that best suits you.