Axis Bank and HDFC Bank have held the reputation of being the top home loan providers in India for a while now. Their hassle-free application process, competitive interest rates, and customer-centric approach throughout loan approval are some of the potential reasons that make them the most preferred choices for a home loan.
But if you wonder which one to choose for a home loan, kindly go through this article, as it compares both Axis and HDFC Bank in different parameters, including interest rates, fees, and other features.
Axis Bank Home Loan Overview
Axis Bank provides home loans for various purposes, such as buying a built-up house/flat, constructing a new house/flat, purchasing land/plot, extending the home, repairing, and renovating a home. The lender offers a maximum loan amount of up to Rs 5 crore or up to 90% of the property value with a long repayment tenure of up to 30 years.
Home loans offered by the Axis Bank are available for salaried/self-employed individuals and professionals (Doctors, Lawyers, etc.) with a minimum age of 21 and a maximum of 65. The interest rates for Axis Bank home loans come in both floating (8.75% - 9.15% p.a.) and fixed (14% p.a.) formats.
Axis Bank Home Loan Schemes
For people with different financial needs, Axis Bank offers multiple home loan schemes, which are as follows:
- Shubh Aarambh Home Loan: You can enjoy the interest subsidy under the Pradhan Mantri Awas Yojana Scheme and 12 EMI* waivers with this home loan scheme offered by Axis Bank.
- Home Loan Balance Transfer: This involves transferring your existing home loan to Axis Bank, featuring a reduced interest rate or a larger loan amount.
- Fast Forward Home Loan: With this specific scheme, you can obtain the maximum loan amount by using your combined income.
- Asha Home Loan: You can get up to Rs 35 lakh (90% of the loan amount) at loan amount for starting interest rate of 10.05% with this scheme.
- Top-Up Loan: This allows you to avail of extra funds of up to Rs 50 lakh against the mortgage of your property as a home loan customer of Axis Bank.
- Super Saver Home Loan: In this type of home loan scheme, you can save on the total interest payable on your Axis Bank Home Loan by depositing an amount in the Super Saver Account. Also, this surplus fund will be available to you anytime you need it.
- QuikPay Home Loan: This provides a facility for you to repay the higher principal earlier in the loan tenure, reducing your monthly installments with interest savings.
- 24x7 Home Loan Top-Up: This product of Axis Bank provides you with instant financial support (maximum loan amount of up to Rs 25 lakh for starting interest rates of 9.75%) amid loan repayment for home renovation or any sudden business requirements.
Axis Bank Home Loan Fee and Charges
The lender levies a processing fee (non-refundable) up to 1% of the loan amount or Rs 10,000 (whichever is higher) plus applicable GST. Apart from this, you also have to deal with various charges, such as Prepayment Charges, Conversion Fees, Home Insurance, Cheque Dishonour Charges, Default Charges, and Fees for changes in loan tenure, etc, when pursuing an Axis Bank home loan.
HDFC Bank Home Loan Overview
HDFC Bank provides home loans for various housing needs, including home (ready-to-move-in house/new flat) purchase, home construction, home repairs, renovation, extension, and land/plot purchase from development authorities like MHADA, DDA, etc.
It offers 90% of the property cost for loans up to and including Rs 30 lakh, 80% of the property cost for loans from Rs 30.01 lakh to Rs 75 lakh, and 75% of the property cost for loans above Rs 75 lakh. However, the market value of the property is subject to change, and after the HDFC Bank assesses your repayment capacity, any loan amount disbursed to you.
Moreover, the lender determines the repayment tenure after analyzing the availed home loan type, the borrower’s age, profile, maturity of the loan, etc. For different home loan schemes, there are specific repayment tenures which are described below:
| Home Loan Schemes | Maximum Repayment Tenure |
| Home loans, Rural Housing, and Balance Transfer loans | 30 years or until retirement age, whichever comes first. |
| Home Extension Loans | 20 years or until retirement age, whichever comes first. |
| Home Renovation, Plot and Top-Up Loans | 15 years or until retirement age, whichever comes first. |
Salaried and Self-Employed (Professional & Non-Professional) with age criteria between 18 and 70 are eligible for the home loan provided by the HDFC Bank. It features interest rates named Special Housing loan rates and Standard Housing loan rates (floating rates), which are linked to HDFC Bank’s policy repo rate.
HDFC Bank Home Loan Products
HDFC Bank offers multiple home loan products to cater to a wider customer base with different housing needs. Let’s take a sneak peek at the different home loan products offered by the HDFC Bank:
- Plot Loan: This HDFC home loan product helps you in acquiring the land for building your dream living space.
- Rural Housing Loan: It provides you with a home loan based on your owned agricultural land and the cultivated crops, empowering you towards homeownership in rural or urban areas.
- Home Renovation Loan: With the help of HDFC Bank’s home renovation loans, you can design your existing home as per your style preferences to make it a more vibrant living space.
- Home Extension Loan: It allows you to add more space to your home to fulfill the extended needs of your family.
- Top-Up Loan: It provides you with extra financial support over and above your existing home loan to fulfill your personal and professional requirements, such as a dream vacation, children’s marriage/education, debt consolidation, business expansion, etc.
- Home Loan Balance Transfer: It allows you to move your Home Loan outstanding balances to HDFC Bank at attractive interest rates, featuring lower monthly installments and ultimately, reduced loan repayments.
- NRI Home Loans: These types of loans apply to you if you’re categorized as NRIs, PIOs, and OCIs* for a flat, row house, or bungalow purchase from private developers in approved projects in India.
- Pradhan Mantri Awas Yojana Urban 2.0 (PMAY- U 2.0): By offering you the benefit of the Interest Subsidy Scheme (ISS), HDFC Bank can assist you in purchasing or building your first pucca home with lower home loan EMIs.
HDFC Bank Home Loan Fee and Charges
In addition to relevant taxes and regulatory levies, HDFC Bank charges a processing fee of up to 0.50% of the loan amount or Rs. 3300, whichever is higher, for resident housing loans, extensions, renovation loans, refinances of housing loans, and plot loans for housing (for self-employed, salaried professionals).
The processing fee mentioned above varies for NRI loans, Value Plus loans, loans under the HDFC Bank Reach Scheme, loans that are re-appraised six months after the date of sanction, loans that increase in amount, and loans for self-employed non-professionals that are for resident housing, extension, renovation, refinance, or plotting.
HDFC Bank charges several other fees in addition to the processing fee, including incidental fees, delayed installment payment fees, stamp duty, MOD, MOE, registration fees, fees imposed by regulatory or government bodies like CERSAI, and fees imposed by third parties like mortgage guarantee companies.
It’s important to note that HDFC Bank home loan offers a 10% discount on all service charges for senior citizens.
Interest Rate and Fee Comparison Between Axis Bank and HDFC Bank
| Loan Schemes | Axis Bank | HDFC Bank |
| Regular Home Loan | Interest Rates: 8.75% - 9.10% p.a. (for CIBIL Score of 751 and above) Processing Fee: Rs 10,000 or 1% of the loan amount, whichever is greater, plus any applicable GST | Interest Rates: The Special Housing Loan Rates range from 8.70% to 9.55% p.a. The standard housing loan rates range from 9.40% to 9.95% p.a. Processing Fee: A maximum of Rs. 3300 or 0.50% of the loan amount, whichever is greater. (For Salaried, Self-Employed Professionals). Up to 1.50 % of the Loan amount or Rs. 5000/—whichever is higher (for self-employed non-professionals). |
| Balance Transfer Loans | Interest Rates: Align with Axis Bank’s standard home loan rates. Processing Fee: Up to 1% of the loan amount | Interest Rates: The Special Housing Loan Rates range from 8.70% to 9.55% p.a. The standard housing loan rates range from 9.40% to 9.95% p.a. Processing Fee: A maximum of 0.50% of the loan balance or Rs. 3,000, whichever is more (For Salaried, Self-Employed Professionals). Up to 1.50 % of the Loan amount or Rs. 4500/—whichever is higher (for self-employed non-professionals). |
| Top-Up Loans | Interest Rates: 8.75% - 9.10% p.a. (for CIBIL Score of 751 and above) | Interest Rates: The Special Top-Up Rates under the outstanding home loan + top-up loan slab range from 9.45% to 10.40% p.a. The Standard Top-Up Rates under the outstanding home loan + top-up loan slab range from 10.40% to 10.95% p.a. |
| Home Renovation Loans | N/A | Interest Rates: The Special Home Loan Rates range from 8.50% to 9.35% p.a. The Standard Home Loan Rates range from 8.70% to 9.55% p.a. Processing Fee: A maximum of Rs. 3300 or 0.50% of the loan amount, whichever is greater. (For Salaried, Self-Employed Professionals) As much as 1.50% of the loan balance or Rs. 5,000, whichever is greater (For Self-Employed Non-Professionals) |
| Shubh Aarambh Home Loan | Interest Rates: 8.75% - 9.10% p.a. (for CIBIL Score of 751 and above) | N/A |
| Plot Loans | N/A | Interest Rates: The Special Home Loan Rates range from 8.50% to 9.35% p.a. The Standard Home Loan Rates range from 8.70% to 9.55% p.a. Processing Fee: A maximum of Rs. 3300 or 0.50% of the loan amount, whichever is greater. (For Salaried, Self-Employed Professionals) As much as 1.50% of the loan balance or Rs. 5,000, whichever is greater(For Self-Employed Non-Professionals) |
| Fast Forward Home Loan | Interest Rates: 8.75% - 9.10% p.a. (for CIBIL Score of 751 and above) Processing Fee: Up to 1% of the loan amount, subject to a minimum of Rs 10,000 | N/A |
| Rural Housing Loans | N/A | Interest Rates: The Standard Home Loan Rates for Salaried, Self-Employed & Agriculturists range from 9.20% to 10.55% p.a. |
| Asha Home Loan | Interest Rates: Starts at 10.05% p.a. Processing Fee: The maximum amount is 1% of the loan amount or Rs 10,000, whichever is greater, plus the applicable GST. | N/A |
| Home Extension Loan | N/A | Interest Rates: The Special Housing Loan Rates range from 8.50% to 9.35% p.a. The Standard Home Loan Rates range from 8.70% to 9.55% p.a. Processing Fee: A maximum of Rs. 3300 or 0.50% of the loan amount, whichever is greater. (For Salaried, Self-Employed Professionals) Rs. 5000 or up to 1.50% of the loan amount, whichever is greater (For Self-Employed Non-Professionals |
| Super Saver Home Loan | Interest Rates: 8.75% - 9.10% p.a. (for CIBIL Score of 751 and above) Processing Fee: A maximum of Rs 10,000 or 1% of the loan amount, whichever is greater.+ GST (as applicable). | N/A |
| NRI Loans | N/A | Processing Fee: As much as 1.50% of the loan balance or Rs. 3,300, whichever is greater |
| QuikPay Home Loans | Interest Rates: 8.75% - 9.10% p.a. (for CIBIL Score of 751 and above) | N/A |
| 24x7 Home Loan Top-Up | Interest Rates: Starts at 9.75% p.a. | N/A |
Note: The interest rates for both lenders are subject to fluctuation and are at the sole discretion of the lenders. Moreover, the above-mentioned processing fee for HDFC Bank home loans includes applicable taxes / statutory levies as well.
Features Comparison
| Axis Bank | HDFC Bank |
| Attractive Interest Rates | Special Offer for Central Govt. or State Govt. Employee |
| Hassle-free loan balance transfer | Quick and Easy Processing |
| Doorstep Service | Easy Documentation |
| No prepayment charges for floating-rate loans | Easy Balance Transfer |
| Quick and Transparent Processing | Individual borrowers who get a floating-rate term loan for non-business purposes will not be charged any part payments. |
| Flexible Tenure Features multiple home loan schemes to meet borrowers’ financial needs | Customized Repayment Options Low Processing Charges No Hidden Charges 24x7 assistanceExpert legal and technical counselingIntegrated Home Finance Branch Network |
Which is Better? Axis Bank or HDFC Bank Home Loan
When choosing any one of them for your dream living space, consider the specific factors you are looking for in a home loan provider. If you want different schemes apart from regular home loans, Axis Bank home loans can be your go-to choice. However, if you want to enjoy lower interest rates (comparatively) and processing fees, you can go ahead with the HDFC Bank home loans.
Both Axis and HDFC Bank have quite similar features. However, you can pay attention to their interest rate offerings, loan tenure allotment, maximum loan funding, levy processing fee, and type of home loan schemes to find uniqueness in their offerings.
So, ultimately, it’s up to you which one you prefer as per your specific housing finance needs.
References:
Home Loan - Apply for Housing Loan Online Up to Rs 5 Cr* | Axis Bank
Home Loan Apply Online | Housing Loan upto Rs. 10 Crore*
Compare AXIS Bank Vs HDFC Bank Home Loan Detailed Information
