SBI vs HDFC Home Loan
SBI is India's largest home-loan lender by book size; HDFC Bank (post-merger) is the largest private-sector lender. Both are strong choices - but the total cost of the loan over 20-25 years can differ by lakhs depending on which you pick.
Last updated: 15 June 2025
Option A
SBI
Lowest published rates and Maxgain overdraft variant.
Option B
HDFC Bank
Faster processing and doorstep service; slightly higher rate.
Side-by-side comparison
| Feature | SBI | HDFC Bank |
|---|---|---|
| Starting rate | 8.50% p.a. (EBLR-linked) | 8.75% p.a. (Repo-linked) |
| Maximum loan amount | Up to ₹15 crore | Up to ₹10 crore |
| Maximum tenure | 30 years | 30 years |
| Processing fee | 0.35% of loan (max ₹10,000) | Up to 0.50% (often ₹3,000 promo) |
| Foreclosure (floating) | Nil | Nil |
| Overdraft variant | Maxgain (available) | Not available |
| Disbursal timeline | 15-30 days | 10-20 days |
| Doorstep service | Limited | Yes |
| LTV cap (₹30-75 lakh) | 80% | 80% |
Our verdict
SBI is the cheaper choice on almost every parameter - lower starting rate, cheaper processing fee, and the highly useful Maxgain overdraft. Over a 20-year ₹50 lakh home loan, SBI could save you ₹3-4 lakh in interest. HDFC Bank wins on speed and service - if you have a tight closing timeline or want a single point of contact, that's worth 25-30 basis points to some borrowers.
Maxgain: SBI's secret weapon
Maxgain converts your home loan into an overdraft account. Any surplus you park in it reduces the interest-bearing portion without formal prepayment. For salaried borrowers with irregular bonuses or year-end incentives, this can shave off 2-3 years of tenure at no extra cost.