I sat in my Bangalore living room in 2018. Laptop open. Two loan sanction letters in front of me.
HDFC on the left. SBI on the right.
My wife was tired of renting. We had moved back from San Jose a year ago. My mom needed us. My dad had passed away when I was in college. She was alone for too long.
We had the down payment ready. Savings from my Citrix and SuperMoney days in California.
But which bank should we trust with a 20 year commitment?
My mom swore by SBI. Her pension. Her savings. All SBI.
My tech friends said HDFC. Modern. Fast. No hassle.
I applied to both. Got offers from both. Spent a week analyzing every detail.
That decision taught me more about Indian banking than my entire time abroad.
Three years later. I have helped over 200 families in the Back to India movement buy homes.
Half chose HDFC. Half chose SBI. Everyone has an opinion.
Let me share what actually matters.
The Numbers That Actually Matter
Forget the marketing. Focus on what hits your bank account every month.
| Factor | HDFC | SBI |
|---|---|---|
| Interest Rate Range | 8.60% to 9.15% | 8.50% to 9.00% |
| Processing Fee | 0.50% (max ₹30,000) | 0.35% (max ₹30,000) |
| Approval Time | 10 to 15 days | 18 to 25 days |
SBI wins on rate. Always has. Probably always will.
That 0.10% to 0.15% difference looks small. It is not.
On a ₹75 lakh loan over 20 years. You save about ₹4.5 lakhs with SBI.
Real money. Not pocket change.
I chose HDFC anyway. My reasons made sense for my situation.
My friend chose SBI. His reasons made sense for him.
Neither of us regrets our choice.
For understanding broader property buying, read my guide on buying property in India as an NRI.
My HDFC Experience: Speed Over Savings
Applied online from my Bangalore apartment. Uploaded documents. Got a call the next day.
Relationship manager came to my office. Verified everything. Sanction letter in 12 days.
The speed mattered. Our landlord wanted us out. We had 45 days to close the deal.
HDFC delivered. Loan disbursed. Keys in hand. Done.
My EMI is ₹62,450 per month. Could have been ₹61,800 with SBI.
That ₹650 difference? I pay it for the convenience I got.
Three years into the loan. Zero regrets.
The app works. The statements come on time. Prepayment is smooth.
When I needed to increase my EMI to pay off faster. One click. Done.
No branch visit. No forms. No waiting.
That matters when you are juggling work and two kids.
One is US born. The adjustment to India was hard enough without adding banking headaches.
My Friend’s SBI Story: Patience Pays
He bought a house in Pune same year. Applied to SBI.
His father banked with SBI for 40 years. He got loyalty benefits.
Rate came down to 8.15%. Lower than market.
Approval took 21 days. More paperwork. More branch visits.
But he saved ₹2.8 lakhs over the loan tenure compared to my HDFC rate.
He is happy. I am happy. Different priorities. Both valid.
His branch manager knows him personally. That relationship matters.
When he wanted to restructure during COVID. One phone call. Done.
For insights on NRI home loans across different banks, I have covered the complete landscape.
The NRI Angle: Where Geography Matters
You are in Dubai. Or USA. Or Singapore. Buying property in Mumbai.
Can you do everything remotely?
| Feature | HDFC | SBI |
|---|---|---|
| Video KYC | Yes, seamless | Yes, but glitchy |
| Foreign Salary Proof | Accepted easily | More documentation needed |
| Power of Attorney | Smooth process | Extra verification |
HDFC built their NRI process for the digital age.
My cousin in New Jersey bought a flat in Mumbai. Never visited India during the process.
Video KYC. Digital signatures. His brother handled registration with POA.
Keys delivered by courier to his brother. Entire process 18 days.
That is impressive.
SBI works too. But expect more friction.
Another friend in Singapore used SBI. Had to visit India once for verification.
Extended his vacation by a week. Got it done.
If you are visiting anyway. SBI works fine.
If you are purely remote. HDFC is smoother.
For those planning the move back, read about returning to India and timing your property purchase.
Branch Network: David vs Goliath
SBI has 22,000 branches. HDFC has 6,800.
That gap matters depending on where you buy.
Mumbai? Bangalore? Delhi? Both banks are everywhere.
But Coimbatore? Madurai? Vijayawada?
SBI is on every corner. HDFC might need coordination with regional office.
My colleague bought a house in a smaller Tamil Nadu town.
Local SBI branch handled everything. Manager visited the property himself.
HDFC coverage was thin. Would have meant coordinating with Chennai office.
He went SBI. Smart choice for his location.
Think about where your property is. Not just where you live now.
The Hidden Costs Nobody Talks About
Processing fee is visible. But other costs add up.
| Cost Type | HDFC | SBI |
|---|---|---|
| Valuation Fee | ₹3,000 to ₹5,000 | ₹2,000 to ₹4,000 |
| Legal Charges | ₹8,000 to ₹15,000 | ₹6,000 to ₹12,000 |
| Total Upfront | ₹40,000 to ₹50,000 | ₹35,000 to ₹46,000 |
I paid zero processing fee. Festival offer running when I applied.
Saved ₹30,000 right there.
My friend paid full fee at SBI. No offer at his time.
Watch for promotional periods. Both banks run them.
Diwali. New year. Financial year end.
Timing your application saves money.
For broader financial planning, check my guide on planning your finances in India after years abroad.
Customer Service: What You Actually Get
HDFC gives you a relationship manager. Single point of contact.
I have his WhatsApp. I message. He responds within hours.
Their app is excellent. Check balance. Download statements. Request prepayment. All online.
SBI call center is overloaded. Wait times are brutal.
But a good branch manager changes everything.
My friend’s manager in Pune is responsive. Knows him. Solves problems.
That personal touch matters to many people.
SBI feels like traditional banking. HDFC feels like fintech.
Pick what suits your style.
Real Talk: Who Should Choose What
Scenario 1: NRI in USA buying Bangalore apartment. Not visiting soon.
Go HDFC. Remote process is solid. Speed matters.
Scenario 2: NRI in Dubai buying Kochi villa. Visiting next month.
Go SBI. Lower rate saves money. Can visit branch during trip.
Scenario 3: Returned to India. Salaried job. Buying first home.
Apply to both. Pick whoever offers better terms.
Scenario 4: Buying in tier 2 city. Want local presence.
Go SBI. Branch network is unmatched.
Scenario 5: Want everything digital. Hate branch visits.
Go HDFC. App and online experience are superior.
I was scenario 3. Already back in India. Could have gone either way.
Chose speed over savings. My wife’s patience was running thin with rentals.
Would I choose differently today? Maybe. Depends on current offers.
Ask in our Facebook group. Real time experiences matter more than my 2018 story.
What I Would Do Today
Apply to both banks. Also ICICI and Axis.
Get sanction letters from all. Compare actual numbers.
Not advertised rates. Your rate. Based on your profile.
Take two weeks. Analyze everything.
Processing time. Interest rate. Relationship manager quality. App experience.
Then decide.
Home loans are 20 year commitments. Take time.
I rushed because I had to. You probably do not.
For understanding the complete property journey, read about how NRIs can buy an apartment in India.
Tax Benefits Are Identical
Both banks qualify for deductions.
Principal under Section 80C. Up to ₹1.5 lakhs.
Interest under Section 24(b). Up to ₹2 lakhs.
The bank does not matter here. The loan structure does.
For detailed tax planning after moving back, check my article on smart tax saving strategies for returning NRIs.
My Honest Recommendation
For most NRIs buying from abroad. HDFC wins.
Better digital process. Faster approvals. Less hassle.
You pay slightly more in interest. But you save time and stress.
For NRIs already in India or visiting soon. Compare both.
SBI lower rate is attractive. Branch network helps.
HDFC convenience is valuable. Digital experience matters.
Neither choice is wrong. Both banks are solid.
I am three years into my HDFC loan. Paid off 18% already.
Planning to close it in 12 years instead of 20.
The bank did not make me wealthy. My decisions did.
Pick either. Start building equity. Stop overthinking.
Your property appreciates the same regardless of which bank holds the loan.
That property I bought in 2018 for ₹85 lakhs? Worth ₹1.1 crore today.
That ₹25 lakh gain matters more than the ₹4.5 lakhs I might have saved with SBI.
Focus on buying the right property. The loan is just a tool.
Get pre approved before house hunting. Makes negotiation easier.
And whatever you do. Read every page of the loan agreement.
I know it is boring. 50 pages of legal terms.
Read it anyway. Know what you are signing.
Your financial future depends on it.
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