What are the merits and demerits of SBI and HDFC home loans?

SBI home loans:

• Reasonable or lower interest rates.


• Some branches might have poor customer service.


• No unnecessary charges


• No pre-closure or part payment charges


• Over draft facility with SBI max home loan for loan account


• Overall You get what you see.. transparent home loan

Demerits

• Time consuming


• Have to produce all the documents


• Might have to make down payments or margin payment, which is usually up to 20 percent of the home loan amount. For eg: if your home loan is for 30 lakhs, you might be asked to have a amount of 5 to 6 lakhs in hand.


• Lot of rules and regulations


• Might not get expected loan amount

HDFC Home loan merits

1. Fast loan amount disbursal


2. Prompt customer service


3. Not a time consuming process


4. Can bargain and also get higher loan amount

Demerits

• Very slow to reduce interest rates if home loan rates come down


• Penalty is high if one month EMI is missed


• Hidden charges


• Pre-closure charges


• Pre-payment charges


• Highly expensive when compared to PSU home loans