I want to borrow home loan. I have narrowed down to two choices ? vanilla loan from HDFC at 10.25% and smart loan from HSBC @ 10.5%. Smart loan will give me flexibility to park funds and withdraw them in times of need but HDFC is giving a benefit of 0.25%. I am confused between the two. From where should I borrow?
If flexibility is the only criteria, then you can also think about SBI max gain. A difference of 0.25% will not make much difference. Choose the lender with the lowest frequency of enhancing rate of interest.