Choosing the Right Home Loan: Comparing IDFC and SBI on Interest Rates, Loan Amount and Terms

Last Updated : March 4, 2023, 3:19 p.m.

Home loans are most beneficial in renovating a house or purchasing a new one. So it is always advisable to compare the good interest rate, loan amount, tenure, etc. So here is a comparison between two great financial institutions IDFC home loan and SBI home loan.

Differences between SBI Home loan and IDFC Home loan

Here are some differences between them:-

Interest rates

SBI Bank and IDFC Bank offer different interest rates on their home loans.

SBI home loan interest rates range from 8.85% to 9.75%. These rates are subject to change based on various factors such as the loan amount, tenure, and the applicant’s profile. SBI also offers various schemes and discounts that can help lower the interest rates on home loans.

IDFC home loan interest rates range from 8.85% onwards. Like SBI, these rates are subject to change based on various factors. IDFC Bank also offers various schemes and discounts to its customers, including the option of a floating interest rate.

Both banks offer the option to apply for a home loan online through their respective websites, and both have a network of branches where customers can visit and apply for a loan in person.

Loan amount and Eligibility

SBI Home Loan

• Loan amount: The maximum loan amount offered by SBI Bank for a home loan is up to ₹10 crores.
• Eligibility: To be eligible for a home loan from SBI Bank, the applicant must be an Indian resident between 18 and 70 years old.

IDFC Home Loan

• Loan amount: The maximum loan amount offered by IDFC Bank for a home loan is up to ₹3 crores.
• Eligibility: To be eligible for a home loan from IDFC Bank, the applicant must be an Indian resident between the ages of 23 and 70.

Tenure length

The tenure length of the SBI Bank home loan and IDFC home loan are different in the following ways:

SBI Home Loan : The tenure length of an SBI Bank home loan ranges from 5 years to 30 years. This flexible tenure period can be extended up to 30 years for the loan amount up to Rs.75 lakhs and up to 25 years for loan amounts above Rs.75 lakhs.

IDFC Home Loan : The tenure length of an IDFC Bank home loan ranges from 5 to 20 years. This tenure period is shorter than that of SBI Bank but can be extended up to 20 years for the loan amount up to Rs.50 lakhs and up to 15 years for loan amounts above Rs.50 lakhs.In summary, the tenure length of the SBI home loan is longer than that of IDFC home loan, providing borrowers with the flexibility to pay back the loan over a longer period. On the other hand, IDFC Bank home loan offers a shorter tenure period which could result in higher monthly EMI but lower interest payments.

Prepayment Penalties

SBI Home Loan Prepayment Penalty

SBI home loan comes with a prepayment penalty if you pay off the loan before its maturity. The penalty is calculated based on the outstanding loan amount and the remaining tenure of the loan.

Per the SBI home loan agreement, the prepayment penalty is 2% of the outstanding loan amount if the loan is prepaid before 6 months of the loan tenure. The penalty reduces to 1% of the outstanding loan amount if the loan is prepaid between 6 months and 12 months of the loan tenure. There is no penalty if the loan is repaid after 12 months of the loan tenure.

IDFC Home Loan Prepayment Penalty

IDFC home loan also has a prepayment penalty if you pay off the loan before its maturity. The penalty is calculated based on the outstanding loan amount and the remaining tenure of the loan.

Unlike, SBI bank, IDFC home loan agreement, the prepayment penalty is 2% of the outstanding loan amount if the loan is prepaid before 6 months of the loan tenure. The penalty reduces to 1% of the outstanding loan amount if the loan is prepaid between 6 months and 12 months of the loan tenure. There is no penalty if the loan is repaid after 12 months of the loan tenure.

Repayment

The repayment options for IDFC Bank and SBI Bank home loans are as follows:

IDFC Home Loan

• Equated Monthly Instalments (EMIs)
• Step-up Repayment Option
• Balloon Repayment Option

SBI Bank Home Loan

• Equated Monthly Instalments (EMIs)
• Flexible Loan Instalment Plan (FLIP)
• Step-up Repayment Plan
• Prepayment without penalty.

Customer care

IDFC  Home Loan Customer Service

• Toll-free number: 1800 419 4332
• Email support: [email protected]
• Online chat support available on the bank’s official website
• Branches and ATMs located across the country for in-person support

SBI Bank Home Loan Customer Service

• Toll-free number: 1800 11 2211
• Email support: [email protected]
• Online chat support available on the bank’s official website
• Branches and ATMs located across the country for in-person support.

Both banks offer 24/7 customer support for their home loan customers and provide quick resolution of any queries or concerns.

Conclusion

In conclusion, both IDFC Bank and SBI Bank offer competitive home loan options with various features and benefits. IDFC home loan offers flexible repayment options, quick disbursal, and doorstep services, while SBI home loan offers a large network of branches and ATMs, easy loan processing, and a wide range of loan schemes. The choice between these two banks ultimately comes down to personal preferences and requirements. Customers can compare the features, interest rates, and other terms and conditions of both banks to determine the best home loan option.