SBI or Axis Bank Home Loan: Which One Offers the Best Interest Rates and Features?

Home buying is a big decision, and choosing the right home loan can be challenging. Two of the most popular options in India are the State Bank of India (SBI) and Axis Bank. Both banks offer a wide range of home loan schemes and competitive interest rates.

In this article, we will compare India’s most renowned home loan options – the SBI home loan (State bank of India) and the Axis Bank home loan.

Difference Between SBI and Axis Bank Home Loan

SBI is the largest public sector bank in India and has a strong reputation for providing excellent customer service. They offer many home loan options, including fixed-rate, floating-rate, and adjustable-rate loans. On the other hand, Axis Bank is another major player in the Indian home loan market.

We’ll compare the interest rates, processing fees, and other terms and conditions of the SBI home loan and Axis Bank home loan:

Interest Rates

SBI home loans have interest rates starting at 8.80% for women borrowers and 8.85% for others. These rates are among the lowest in the market and can help you save a significant amount of money over the life of the loan. On the other hand, Axis Bank home loan offers loans at an interest rate of 8.75% to 9.15%.

It is important to note that the interest rates offered by these banks are subject to change and may vary based on the loan amount and the borrower’s credit score. Additionally, both banks offer special offers and discounts on their home loans interest rates, such as a reduced rate for women borrowers or those who apply for a loan online.

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Processing Fees

Another essential factor to consider when choosing a home loan is the processing fee, also called the administrative fee. You must pay banks a fee to deal with your home loan application. It is a one-time fee usually paid to the bank instead of being deducted from your loan amount. Banks charge the processing fee after your application is approved.

SBI home loan charges a processing fee of up to 0.35% of the loan amount, which is one of the lowest in the market. It means that if you’re taking out a loan of Rs. 50 lakhs, the processing fee would be just Rs. 17,500.

Axis Bank home loan charges a fee of 0.50% to 1% of the loan amount. It means that if you apply for a home loan of Rs. 50 Lakh, Axis Bank would charge anywhere between Rs. 25,000 to Rs. 50,000

It’s essential to consider the processing fees when comparing home loans, as they can add up to a significant amount in the long run.

Loan Amount

The loan amount can be very important when considering a home loan, as a higher loan will give you more buying power, allowing you to purchase a more luxurious property.

SBI home loan offers up to 90% of the property value for salaried individuals and up to 85% for self-employed individuals. SBI currently offers home loans up to Rs. 10 crores. On the other hand, Axis Bank home loan offers loan amounts up to Rs. 5 crores.

SBI may be a better choice for borrowers purchasing a more expensive property. However, it’s important to note that the maximum loan amount will also depend on your financial situation and creditworthiness.

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Loan Scheme

When it comes to loan schemes, both SBI and Axis Bank, have a variety of options available for borrowers. SBI offers the SBI Max Gain and SBI Realty schemes specifically designed for home buyers. 

  • SBI Max Gain is a scheme that allows borrowers to save on interest costs by using the savings account linked to the home loan as an overdraft account. 
  • SBI Realty is a scheme specifically designed for home buyers looking to purchase a new property. It offers a variety of benefits, such as a lower interest rate and a longer repayment period.

Axis Bank offers the Axis Asha Home Loan and the Axis Bank Home Loans for NRIs.

  • The Axis Asha Home Loan is a scheme for first-time home buyers and low-income borrowers. It offers a lower interest rate and a longer repayment period than other home loan schemes offered by Axis Bank. 
  • The bank also designs schemes for Non-Resident Indians looking to purchase a property in India. It offers a variety of benefits, such as a lower interest rate and a longer repayment period.

Repayment options

The loan repayment tenure is another essential factor to consider when choosing a home loan, as it determines the time you will have to pay off the loan. A longer loan tenure will give you a lower monthly payment, but you will pay more in interest over the life of the loan. A shorter loan tenure will give you a higher monthly payment, but you will pay less in interest over the life of the loan.

SBI offers home loans for 30 years, while Axis Bank offers a maximum period of 25 years.

  • SBI home loan offers the option of a floating rate home loan, which can be beneficial for borrowers who want the flexibility to make prepayments without penalty.
  • Axis Bank home loan offers a balance transfer facility, which allows borrowers to transfer their existing home loan to the respective lender at a lower interest rate. It can help borrowers save significant money on their home loans.
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Customer service

Regarding customer service, both SBI and Axis Bank are known for their good customer service. However, SBI has a wider network of branches, giving you better service accessibility. Additionally, SBI and Axis bank offer more internet banking, mobile banking, and SMS banking services.

Conclusion

SBI home loan and Axis Bank home loan are excellent options for home loans in India. Both banks offer competitive interest rates, various loan options, and flexible repayment options. Both lenders offer a range of home loan products, flexible repayment tenures, balance transfer facilities and good customer service. However, the best option for you will depend on your specific needs and requirements. SBI is a good choice for borrowers looking for a lower interest rate and a higher loan amount.

On the other hand, Axis Bank is a private sector bank known for its personalized service and ability to customize loan products to meet the customer’s specific needs. They also have a strong online presence and mobile application to make availing and repaying loans more convenient.

  • Home Loan Interest Rates March 2024
    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 Bank8.70%
    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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