HDFC Bank vs ICICI Bank: Reviewing in Terms of Home Loan
An individual always wants to seek the best interest offer, and that will define how comfortable they are when it comes to taking a home loan. A borrower often gets confused between the lenders and can’t figure out what are the key criteria under which one will eventually have the better deal.
Depending on the financial situation of a person, one might look at a home loan option that will bring enough comfort to the long-term financial health of a person and let an individual make an informed decision.
Now, to have a clear understanding, it’s better to look at the two top private lenders in the country and find the right set of home loans for each customer profile.
- Approval of Loan Amount
One of the first tasks that a person can do is to take the approximate loan amount, and based on that, one can fix the total loan amount that one can get from the lender. The business loan agent or a home loan partner needs to show the borrower the right lender that will suit the customer profile.
ICICI Bank: When it comes to ICICI Bank, the borrower can go for this lender when the required amount is small. However, for the HNIs, the loan amount is large, and the bank can compensate for it. In this bank, the minimum loan amount one can get is up to 80%.
HDFC Bank: HDFC home loan offers better loan-to-value where the ratio of the loan can rise upto 90% depending on the profile of the customer. For a loan of a higher amount, it can go up to 3.5 Cr INR, and that will be provided by judging the value of the property.
- The Repayment Terms
The repayment options for both banks are huge, and for that, one needs to find the right repayment plans and fixed or floating options that are suitable for the borrower based on the income profile. The increase in home loan interest happens when RBI increases the repo rate, and for that, one needs to gradually increase the income to lower the cost and repay the debt earlier.
ICICI Bank: In this bank, one can find a range of options such as fixed and floating interest rates where one can lower the EMI gradually and based on the current rate of the market. The borrowers need to start the plan, and based on that, one can find the time, and within that, one can fulfill the entire interest amount along with the principal.
HDFC Bank: HDFC Bank also offers the same options to the borrowers, and along with that, it also keeps the options of part payments where one can reduce the debt in a chunk based on which the interest will get lowered and eventually becomes easier for the borrower to clear the debt completely.
- How Much Will Processing Fee Cost?
Processing fee is another thing that a borrower needs to consider as this is the amount that is being calculated with the loan, but you don’t get that amount. However, one needs to pay interest on top of that.
Therefore, it’s far better to go for such options where one needs to pay less amount as a processing fee and reduce the charges along with the lower monthly installment that comes with a minimal processing fee.
ICICI Bank: In the case of ICICI Bank, the processing fee the lender charges on a home loan is up to 0.5%. In this percentage one can find the right home loan amount when one can get the processing fee checked and verified by the bank officials.
HDFC Bank: In HDFC Bank, the processing fee varies between 0.25% to 0.5% depending on the loan amount. Finally, it’s better for the individual who is seeking a higher home loan amount to have the alternate option of lowering the processing fee.
One can consult a DSA through a loan agent app, and they can give detailed information about the processing fee and interest of the home loan and state which lender will be the perfect option for the client.
- Interest Rates for Each Bank
The interest rate for each bank hardly changes and varies between 0-1 to 0-15% and has no such distinctive characteristics in this segment.
Hence, by considering the other factors, one needs to choose a bank or a lender that will provide better terms to the borrower for a home loan.
