When you're planning to buy your dream home, one of the most crucial decisions you'll make is choosing the right home loan provider. With so many choices, it’s easy to feel unsure. Among the most trusted names in the Indian home loan market are HDFC and ICICI Bank. Both have built a reputation for offering competitive interest rates, a smooth loan process, and attractive features. But which option suits you best? In this blog, we’ll compare HDFC and ICICI home loans in 2025, covering everything from interest rates to eligibility, fees, and more.
1. HDFC Bank Home Loans: What You Need to Know
HDFC Bank is one of the most established and trusted names in the home loan industry. Known for its reliable services and diverse loan offerings, HDFC caters to a wide range of borrowers — from salaried employees to self-employed professionals and even NRIs. Whether you're a first-time homebuyer or an experienced investor, HDFC provides loan options that can suit your needs.
Interest Rates at HDFC Bank
The interest rates at HDFC Bank are competitive but can vary depending on the type of loan and your profile. Here's a breakdown of their rates:
- Special Housing Loans (for Salaried & Self-Employed Professionals/Non-Professionals):
- Interest rate: Policy Repo Rate + 2.25% to 3.15% (around 8.75% to 9.65%).
- Standard Housing Loans (for Salaried & Self-Employed Professionals/Non-Professionals):
- Interest rate: Policy Repo Rate + 2.90% to 3.45% (around 9.40% to 9.95%).
These rates are floating, meaning they can change depending on fluctuations in the Repo Rate set by the Reserve Bank of India (RBI). If you're someone who prefers the stability of fixed rates, you might want to reconsider floating-rate loans.
Processing Fees and Charges at HDFC
HDFC’s processing fee depends on the type of loan and can be around 0.50% to 1.50% of the loan amount. Here's a quick breakdown:
- For salaried/self-employed individuals, fees range from ₹3,300 to ₹5,000, depending on the loan amount.
- For NRIs and self-employed non-professionals, the fees may be higher.
|
Charge
Type |
Details |
|
Processing Fees |
0.50% to 1.50% of the loan amount |
|
Salaried/Self-employed |
₹3,300 to ₹5,000 depending on the
loan amount |
|
NRIs and Self-employed
Non-professionals |
Higher fees |
|
Re-appraisal of Loan (After 6
months) |
Salaried/Self-employed
Professionals: ₹3,300 + taxes |
|
Self-employed
Non-professionals/NRI/Value Plus Loans: ₹5,000 + taxes |
|
|
Increase in Loan Amount |
Fees applicable under processing
charges |
|
Conversion Charges Types |
|
|
Switch to Lower Rate in Variable
Rate Loans |
Up to 0.50% of outstanding
principal or ₹3,000 (whichever is lower) |
|
Switch from Fixed to Variable Rate |
Up to 1.50% of outstanding
principal + taxes/statutory levies |
|
Conversion of Floating to Fixed
Rate |
Up to ₹3,000 + taxes/statutory
levies |
|
Miscellaneous Charges Types |
|
|
Payment Return Charges |
₹300 per dishonour |
|
Photocopy of Documents |
Up to ₹500 + taxes |
|
List of Documents Issuance
(Duplicate) |
Up to ₹500 + taxes |
|
Repayment Mode Changes |
₹500 + taxes |
|
Custody Charges for Property
Documents |
₹1,000 per month (post 2 months of
loan closure) |
|
Non-Adherence to Sanction Terms |
Up to 2% annually on outstanding
principal (charged monthly) |
|
Maximum: ₹50,000 for critical
security deferrals, ₹25,000 for others |
|
|
Premature Closure/Part Payment
Charges |
|
|
Adjustable Rate Loans |
No prepayment charges for loans
sanctioned to individuals unless sanctioned for business purposes |
|
Fixed Rate Loans |
Prepayment charges: 2% + taxes on
prepaid amounts unless from own sources |
|
Floating Interest Rate Term Loans |
No charges for part prepayment up
to 25% of the principal during a financial year |
|
Charges for prepayments exceeding
25% |
2.5% + taxes on the excess amount |
Eligibility Criteria for HDFC Home Loans
To qualify for a home loan with HDFC, you need to meet the following basic requirements:
- Age: 18 to 70 years
- Profession: Salaried or self-employed
- Loan Tenure: Up to 30 years
- Loan-to-Value Ratio: Loans up to 90% of the property cost (depending on the loan amount).
Documents required include:
- Proof of identity and address
- Income proof (salary slips, bank statements, tax returns)
- Property documents
2. ICICI Bank Home Loans: What You Need to Know
ICICI Bank is another major player in the home loan market, known for its customer-friendly approach and efficient loan processing. ICICI offers a range of home loan products suitable for both salaried employees and self-employed individuals. The bank has a reputation for fast loan approvals and minimal documentation.
Interest Rates at ICICI Bank
With ICICI Bank, rates start from 8.75%, but factors like your credit score and loan amount will determine the final rate. Here's a breakdown:
- For Pre-Approved Customers: 8.75% per annum
- Standard Rates:
- For salaried applicants: 9.25% to 9.65% for loans up to ₹35 lakh, and 9.50% to 9.80% for loans between ₹35 lakh and ₹75 lakh.
- For self-employed applicants: 9.40% to 9.80% for loans up to ₹35 lakh, and 9.65% to 9.95% for loans between ₹35 lakh and ₹75 lakh.
If you're a pre-approved customer, ICICI offers a highly competitive rate of 8.75%.
Processing Fees at ICICI
ICICI charges a processing fee of around 0.50% of the loan amount, with a cap of ₹10,000. This is quite reasonable when compared to other banks.
|
Charge Type |
Details |
|
ICICI Charges Types |
|
|
Processing Fees |
0.50% of the loan amount, with a cap of ₹10,000 |
|
Prepayment Charges |
|
|
Fixed Interest Rate Loan Prepayment |
2% on Home Loan, Home Improvement Loan, Land Loan, and Top-up Home Loan |
|
4% on Non-home Loans (Loan Against Property, Lease Rental Discounting, Overdraft, etc.) |
|
|
Adjustable Interest Rate Loan Prepayment |
Nil prepayment charges for Home Loan, Home Improvement Loan, Land Loan, and Top-up Home Loan (if used for individual non-business purposes) |
|
2% prepayment charge for business-related top-up loans |
|
|
Part Prepayment Fees |
Nil for most loans |
|
Conversion Charges |
|
|
Floating to Fixed or Floating Rate Conversion |
₹3,000 |
|
Semi-Fixed/Fixed Interest Rate to Adjustable Interest Rate |
2% of the outstanding principal |
|
Miscellaneous Charges |
|
|
Cheque/ECS/NACH Dishonor Charges |
₹500 per dishonour |
|
Cheque/Repayment Mode Swap Charges |
₹500 |
|
Penal Charges (Delay in Payment) |
5% per annum on the overdue sum from the due date to the actual payment date, plus applicable taxes |
|
Amortisation Schedule |
₹200 for a physical printout at the branch |
|
Statement of Account |
₹200 for a physical printout at the branch |
|
Duplicate NOC/No Dues Certificate |
₹250 |
Eligibility Criteria for ICICI Home Loans
ICICI's home loan eligibility is relatively straightforward:
- Age: 21 to 70 years
- Income: Minimum ₹25,000 per month for salaried individuals, ₹30,000 per month for self-employed individuals
- Loan Tenure: Up to 30 years
Documents required include:
- Identity proof (Aadhaar, passport, voter ID)
- Income proof (salary slips, Form 16, IT returns)
- Property documents
3. HDFC vs. ICICI Home Loans: Key Comparisons
Here’s a side-by-side comparison of the two banks based on key factors:
|
Feature |
HDFC Home Loan |
ICICI Home Loan |
|
Interest Rates |
8.75% to 9.95% |
8.75% to 10.05% |
|
Processing Fees |
0.50% to 1.50% |
0.50% (up to ₹10,000) |
|
Prepayment Charges |
No charges for floating-rate loans |
Nil for floating-rate loans up to 25% prepayment |
|
Loan Amount |
Up to ₹5 crore |
Up to ₹5 crore |
|
Loan Tenure |
Up to 30 years |
Up to 30 years |
|
Eligibility Age |
18 to 70 years |
21 to 70 years |
|
Premature Closure Charges |
2% for fixed-rate loans |
Nil for floating-rate loans up to 25% prepayment |
|
Penal Charges |
2% annually for non-adherence |
5% per annum for overdue sums |
|
Online Application |
Available with minimal documentation |
Seamless process with minimal documentation |
4. Which Bank is Right for You in 2025?
Both HDFC and ICICI offer attractive home loan products, but the right choice depends on your specific needs. Here’s a simple guide to help you choose:
- Interest Rates: HDFC offers slightly lower interest rates for most borrowers. However, ICICI offers a special rate of 8.75% for pre-approved customers.
- Processing Fees: ICICI has a more straightforward fee structure with a cap of ₹10,000, whereas HDFC’s fees vary depending on the loan type.
- Prepayment Flexibility: If you want flexibility with prepayments, HDFC may be the better choice, especially for floating-rate loans.
- Eligibility: HDFC is more flexible in terms of eligibility, allowing borrowers as young as 18 years old to apply, while ICICI has a minimum age of 21.
5. My Take on HDFC vs ICICI Home Loans
In summary, both banks offer strong home loan options. If you're looking for lower interest rates, flexible prepayment options, and a broader range of loan types, HDFC might be the better option for you. On the other hand, if you're looking for a fast, hassle-free process with minimal documentation and are a pre-approved customer, ICICI could be a more convenient choice.
Before making your decision, carefully evaluate your loan requirements, eligibility, and preferences. A home loan is a long-term commitment, and choosing the right one will make a huge difference in your financial journey.
Utilize our Home Loan Calculator by clicking here.
Public FAQs
Q1. Which bank offers better home loan rates?
Both banks offer competitive rates starting from 8.75%. HDFC generally offers slightly lower rates, but ICICI has special rates for pre-approved customers.
Q2. What are the processing fees for HDFC and ICICI home loans?
HDFC charges processing fees ranging from 0.50% to 1.50%, while ICICI has a cap of ₹10,000 for processing fees.
Q3. Are there prepayment charges on home loans?
HDFC offers no prepayment charges for floating-rate loans, whereas ICICI charges for prepayments on fixed-rate loans.
Q4. What is the maximum loan amount I can get?
Both HDFC and ICICI offer home loans up to ₹5 crore.
Q5. Can self-employed individuals apply for home loans with HDFC or ICICI?
Yes, both HDFC and ICICI offer home loans for self-employed individuals. You'll need to provide additional documentation such as tax returns and business details.
