Home Loan - Canara vs HDFC

[Sulabh P]

I am looking for a home loan. HDFC is offering @8.55% and Canara bank @8.4%. However, other than interest rate, how do these two banks compare in terms of:
1. Customer experience / support - how helpful the staff is? how easy or difficult it is to get something done?
2. Processes - For the following tasks, how easy or difficult the process is? e.g., can it be managed simply through app/website or by sending an email or does it require in-person visit to the branch?
a) To increase/decrease the EMI amount
b) Prepayment
c) Disbursement
Looking forward to valuable advice from the community members.

 

[cycleby]

I don't know about the canara but
Hdfc is having a policy of paying prepayment after 6 EMI only and that too is maximum of 25% value.

 

[Sulabh P]

I don't know about the canara but
Hdfc is having a policy of paying prepayment after 6 EMI only and that too is maximum of 25% value.

Ok, thank you for sharing.

 

[Narinder Kumar]

When choosing between HDFC and Canara Bank for a home loan, it's essential to consider factors beyond the interest rate, such as customer experience and the ease of managing various loan-related processes. Here's a comparative overview:

1. Customer Experience and Support

HDFC: HDFC is renowned for its customer-centric approach, offering multiple channels for support, including phone, email, and in-person assistance. Their staff is generally considered helpful, and many processes can be initiated online or through their customer care helplines. For instance, HDFC provides a dedicated helpline for home loan queries .

Canara Bank: As a public sector bank, Canara Bank has a widespread branch network, which can be advantageous for in-person interactions. However, customer experiences can vary, with some customers reporting satisfactory service, while others may encounter bureaucratic procedures. Canara Bank offers customer support through toll-free numbers and has a presence on WhatsApp for customer queries .

2. Processes

a) Adjusting EMI Amount

HDFC: Adjusting the EMI amount, such as increasing it to repay the loan faster, typically requires a formal request. While some services are available online, specific changes like EMI adjustments may necessitate visiting a branch or contacting customer service for detailed guidance.

Canara Bank: Similar to HDFC, changing the EMI amount usually involves submitting a formal request. This process might require an in-person visit to the branch to complete the necessary documentation.

b) Prepayment

HDFC: HDFC allows both partial and full prepayments. For adjustable-rate home loans, there are no prepayment charges. Prepayment can be initiated by submitting a request form, which may be available online or at the branch .

Canara Bank: Canara Bank permits prepayment of home loans without any charges for floating-rate loans. The process typically involves submitting a prepayment request at the branch. Some customers have reported that prepayment can be done as per their convenience .

c) Disbursement

HDFC: The disbursement process at HDFC is structured and can be managed efficiently. For under-construction properties, disbursements are made in stages based on construction progress. The process involves property valuation and legal checks, and while some steps can be initiated online, certain stages may require in-person verification .

Canara Bank: Disbursement procedures at Canara Bank involve property verification and compliance checks. The process may be more manual, often requiring borrowers to visit the branch to complete formalities.


Conclusion

While both HDFC and Canara Bank offer competitive interest rates, HDFC tends to provide a more streamlined and customer-friendly experience, with several processes accessible online or through customer support channels. Canara Bank, being a public sector entity, may have more traditional processes, potentially requiring more in-person interactions. Your choice should align with your preference for digital convenience versus traditional banking interactions.

 

[Sulabh P]

When choosing between HDFC and Canara Bank for a home loan, it's essential to consider factors beyond the interest rate, such as customer experience and the ease of managing various loan-related processes. Here's a comparative overview:

1. Customer Experience and Support

HDFC: HDFC is renowned for its customer-centric approach, offering multiple channels for support, including phone, email, and in-person assistance. Their staff is generally considered helpful, and many processes can be initiated online or through their customer care helplines. For instance, HDFC provides a dedicated helpline for home loan queries .

Canara Bank: As a public sector bank, Canara Bank has a widespread branch network, which can be advantageous for in-person interactions. However, customer experiences can vary, with some customers reporting satisfactory service, while others may encounter bureaucratic procedures. Canara Bank offers customer support through toll-free numbers and has a presence on WhatsApp for customer queries .

2. Processes

a) Adjusting EMI Amount

HDFC: Adjusting the EMI amount, such as increasing it to repay the loan faster, typically requires a formal request. While some services are available online, specific changes like EMI adjustments may necessitate visiting a branch or contacting customer service for detailed guidance.

Canara Bank: Similar to HDFC, changing the EMI amount usually involves submitting a formal request. This process might require an in-person visit to the branch to complete the necessary documentation.

b) Prepayment

HDFC: HDFC allows both partial and full prepayments. For adjustable-rate home loans, there are no prepayment charges. Prepayment can be initiated by submitting a request form, which may be available online or at the branch .

Canara Bank: Canara Bank permits prepayment of home loans without any charges for floating-rate loans. The process typically involves submitting a prepayment request at the branch. Some customers have reported that prepayment can be done as per their convenience .

c) Disbursement

HDFC: The disbursement process at HDFC is structured and can be managed efficiently. For under-construction properties, disbursements are made in stages based on construction progress. The process involves property valuation and legal checks, and while some steps can be initiated online, certain stages may require in-person verification .

Canara Bank: Disbursement procedures at Canara Bank involve property verification and compliance checks. The process may be more manual, often requiring borrowers to visit the branch to complete formalities.


Conclusion

While both HDFC and Canara Bank offer competitive interest rates, HDFC tends to provide a more streamlined and customer-friendly experience, with several processes accessible online or through customer support channels. Canara Bank, being a public sector entity, may have more traditional processes, potentially requiring more in-person interactions. Your choice should align with your preference for digital convenience versus traditional banking interactions.

Thank you. This is very helpful.

 

[AlertsByVivek]

Don't go for HDFC.
Customer service is very bad.

You can't part repayment easily online.

Go with public sector bank loan.
You can whatever amt any time(part repayment)

 

[Sulabh P]

Don't go for HDFC.
Customer service is very bad.

You can't part repayment easily online.

Go with public sector bank loan.
You can whatever amt any time(part repayment)

Thanks. Yes, I have booked it with Canara instead of HDFC.