Buying a home is a major financial decision, and choosing the right home loan can make a significant difference in your long-term savings. Axis Bank and SBI, two of India’s leading banks, offer competitive home loan options with different benefits, interest rates, and repayment structures.
While Axis Bank Home Loans cater to a wide range of borrowers, including low-income groups (EWS/LIG), with unique benefits like EMI waivers, SBI Home Loans are ideal for those with higher credit scores, offering lower interest rates and a structured loan process.
In this guide, we will compare key aspects like loan types, eligibility, interest rates, repayment options, and tax benefits to help you make an informed decision. Whether you’re looking for a smaller home loan with EMI benefits or a competitive interest rate for a high-value property, this comparison will help you find the best fit.
Let’s break down the features of Axis Bank Home Loan vs. SBI Home Loan and see which one aligns with your needs!
Table of Contents
Here’s a comparison table of Axis Bank Home Loan vs. SBI Home Loan Offer 2025:
| Feature | Axis Bank Home Loan | SBI Home Loan Offer 2025 |
| Types of Loans | Multiple options including Asha Home Loan, QuikPay, Shubh Aarambh, Fast Forward, etc. | Standard home loan, no special variants mentioned. |
| Target Audience | Low-income groups (EWS/LIG) and general borrowers. | General borrowers, including those purchasing high-value properties. |
| Loan Amount & LTV Ratio | ₹1 lakh – ₹35 lakh; LTV up to 90%. | LTV varies: 90% (₹30L property), 80% (₹30-75L), 75% (>₹75L). |
| Interest Rates | Salaried: Floating 10.05%+ Self-employed: 12% – 13.30% | Starts at 8.60% (depends on CIBIL score); low CIBIL may get 10-11%. |
| Fixed vs. Floating Rate | Floating: 8.75% – 9.15% Fixed: ~14% (very high) | Floating: Linked to RBI repo rate. Fixed: Higher than floating. |
| Loan Tenure | Up to 30 years | Up to 30 years |
| EMI Waiver Offer | Yes (Asha Loan only): 12 EMIs waived for 20+ year tenure. | No EMI waiver. |
| Down Payment & Additional Costs | Minimum 10% – 25% based on loan amount. | Down payment required (10% – 25%); additional stamp duty, legal, and valuation fees. |
| Mandatory Insurance | Not mandatory. | Mandatory life insurance required (can be SBI or private insurer). |
| CIBIL Score Impact | Not specified. | Score 800+ gets lower interest rates; <750 may get higher rates (10-11%). |
| Application Process | Online or branch visit. Documents: ID, income proof, property papers. | Online or branch visit. Documents: salary slips, Form 16, ITR (for self-employed). |
| Negotiation Possibility | Possible on interest rates & processing fees. | Can negotiate interest rates & processing fees at branch. |
| Property Verification & Valuation | Required before loan sanction. | Third-party lawyers & valuers verify legal status and market price. |
| Loan Sanction & Disbursement | Loan is transferred to property seller’s account upon approval. | Sanction letter issued; loan disbursed after registration. |
| Tax Benefits | Section 80C (₹1.5L on principal) Section 24(b) (₹2L on interest) Section 80EE (₹50K for first-time buyers). | Same tax benefits under 80C, 24(b), 80EE. |
| Best For | Low-income borrowers needing a smaller loan (₹1L-₹35L) with EMI waivers. | Higher loan amounts, better for those with good CIBIL scores (lower interest rates). |
Apart from this you can check a comparison of HDFC vs SBI home loan and SBI vs ICICI bank home loan.
Axis Bank Home Loan – Key Highlights
1. Types of Home Loans
Axis Bank offers various home loan options, including:
- Asha Home Loan (for low-income borrowers)
- QuikPay Home Loan
- Shubh Aarambh Home Loan
- Fast Forward Home Loan
- Top-Up Home Loan
- Super Saver Home Loan
- Power Advantage Home Loan
2. Asha Home Loan – Designed for Low-Income Groups (EWS/LIG)
- Targeted at individuals purchasing small homes (starting from 300 sq. ft. or 33 sq. yards).
- Minimum loan amount: ₹1 lakh | Maximum loan amount: ₹35 lakh
- Loan covers up to 90% of property value
3. Interest Rates & Loan Terms
- Salaried borrowers: Floating interest rate starts from 10.05%
- Self-employed borrowers: Rates range from 12% to 13.30%
- Loan tenure: Up to 30 years
4. EMI Waiver Offer (For Asha Home Loan Only)
- To avail 12 EMI waivers, a minimum 20-year loan tenure is required.
- 4 EMIs waived in the 4th, 8th, and 12th year if all payments are made on time.
5. Loan Purpose & Eligibility
- Home loan can be used for new purchase, construction, resale property, repairs, or extensions.
- Minimum income eligibility:
- Monthly salary of ₹8,000 – ₹10,000 (varies by location).
- Combined family income must be at least ₹10,000.
6. Floating vs. Fixed Interest Rates
- Floating rates fluctuate with RBI’s repo rate (8.75% – 9.15%).
- Fixed rates are much higher (around 14%) and remain constant.
7. Loan Repayment & Strategies to Save Interest
- Reducing tenure (e.g., from 30 years to 15 years) lowers total interest paid.
- Paying one extra EMI per year can significantly reduce loan tenure & interest burden.
8. Home Loan Application & Required Documents
- Identity & Address Proof: Aadhaar, Voter ID, Driving License
- Income Proof: Salary slips (last 3 months), bank statement (last 6 months), Form 16 (for 2 years) or ITR for self-employed
- Property Documents: Relevant legal documents for purchase or construction
9. Loan-to-Value (LTV) Ratio & Loan Transfer
- Bank offers 75-90% of property value as a loan; remaining amount is a down payment.
- Existing home loans from other banks can be transferred to Axis Bank.
10. EMI & Interest Calculation Example
- ₹20 lakh loan at 10.5% interest for 20 years:
- Monthly EMI: ₹19,968
- Total interest payable: ₹22.79 lakh
- EMI calculations can be checked using online loan calculators.
Bonus: Tax Benefits on Home Loans
- Section 80C: Deduction up to ₹1.5 lakh on principal repayment.
- Section 24(b): Deduction up to ₹2 lakh on interest repayment.
- Section 80EE: Additional ₹50,000 deduction for first-time homebuyers.
SBI Home Loan Offer 2025
- Home Loan & Loan-to-Value (LTV) Concept
- Banks do not provide 100% of the property value as a loan.
- For properties up to ₹30 lakh, 90% loan is provided.
- For properties between ₹30–75 lakh, 80% loan is provided.
- For properties above ₹75 lakh, only 75% loan is given.
- Down Payment & Additional Costs
- Borrowers must pay the remaining property cost as a down payment.
- Other costs include stamp duty, valuation charges, and legal verification fees.
- Mandatory Insurance Requirement
- SBI mandates life insurance coverage for home loan borrowers.
- Borrowers can either buy insurance from the bank or opt for their own term plan.
- Fixed vs. Floating Interest Rate
- Fixed Rate: Remains constant throughout the loan tenure but is usually higher.
- Floating Rate: Linked to RBI’s repo rate; fluctuates over time.
- Current Interest Rates & CIBIL Score Impact
- SBI home loan interest starts from 8.60% but varies based on credit score.
- Higher CIBIL scores (800+) get lower interest rates.
- Scores below 750 may result in interest rates of 10-11%.
- Application Process
- Can apply online or by visiting an SBI branch.
- Required documents: salary slips, Form 16, business ITR (for self-employed), etc.
- Loan Negotiation
- Borrowers can negotiate interest rates and processing fees.
- Banks have pressure to disburse loans, making negotiation possible.
- Property Verification & Valuation
- SBI appoints third-party lawyers and valuers to verify property legal status and market value.
- Loan amount is determined based on the valuation, not just the seller’s price.
- Sanction & Disbursement
- After verification, a sanction letter is issued stating loan amount, tenure, and interest rate.
- Loan amount is directly transferred to the property seller’s account upon registration.
- Final Recommendations
- Floating interest rates are preferable due to potential future rate reductions.
- Visiting a branch before applying online is advised for better negotiation and clarity.
Final Verdict: Axis Bank vs. SBI Home Loan – Which One to Choose?
Both Axis Bank and SBI offer attractive home loan options, but the best choice depends on your specific financial profile and requirements.
✅ Choose Axis Bank Home Loan if:
- You belong to the Economically Weaker Section (EWS) or Low-Income Group (LIG) and need a higher loan-to-value (LTV) ratio (up to 90%).
- You are looking for special loan schemes like Asha Home Loan, QuikPay, or Shubh Aarambh, which offer EMI waivers and flexible repayment benefits.
- You want longer loan tenure (up to 30 years) and structured EMI reductions over time.
- You are comfortable with slightly higher interest rates (starting at 10.05% for salaried individuals).
✅ Choose SBI Home Loan if:
- You have a high CIBIL score (750+) and want to secure lower interest rates (starting at 8.60%).
- You are purchasing a high-value property (above ₹30 lakh) and need a lower LTV ratio with competitive rates.
- You prefer a structured loan process with thorough property verification for security.
- You want the flexibility of negotiating processing fees and interest rates at the branch level.
Final Recommendation:
- If you are a low-income borrower looking for maximum financing with EMI waivers, Axis Bank is a better choice.
- If you have a strong credit score and prefer lower interest rates, SBI offers a more cost-effective option in the long run.
- For floating interest rates, SBI is the better option, while Axis Bank offers more repayment benefits for long-tenure loans.
Ultimately, the right home loan depends on your income, loan amount, interest rate preference, and repayment strategy. Analyze your financial situation carefully before making a decision