Comparative Study on Home Loans Between PSU Banks And Private Banks

Abstract

The housing finance sector plays a vital role in promoting home ownership and economic development in India, with banks serving as the primary providers of home loan facilities. This study presents a comparative analysis of home loan products offered by Public Sector Undertaking (PSU) banks and private sector banks, focusing on key dimensions such as interest rates, loan tenure, processing fees, eligibility criteria, documentation requirements, customer service, and repayment flexibility. The study is based on both primary data collected from bank customers and secondary data obtained from bank websites, annual reports, and RBI publications. Analytical tools such as percentage analysis, weighted average ranking, and comparative tables are used to evaluate differences between PSU and private banks. The findings reveal that PSU banks generally offer lower interest rates and longer repayment tenures, making them more cost-effective in the long run, while private banks excel in faster loan processing, customized products, and superior customer service. The study highlights the trade-off faced by borrowers between cost efficiency and service quality.