Shekhar from Delhi said :

I strongly suggest anyone to go for Govt banks from my personal experience. In the short or long run they prove to be better. While HDFC talks about the much touted transparency, they are hardly that. In Govt. banks as the RPLR comes down, our HLR (Home loan rate)rate is automatically adjusted. In HDFC one has to be hawk eyed and have to go to the HDFC bank, enquire and again give a charge and then it is revised down to a prefixed slab. If you do not enquire, do not expect the bank to send you communique on these schemes. Bad luck for you!!!! Govt banks on the other hand revise it the day RBI announces a downward revision in RPLR. HDFC and other Pvt banks are off-course quick to revise it upwards when the RPLR goes up! Also on re-payment, the effect of repayment is immediate in Govt banks. I`am not too sure about this in HDFC. I also suggest to have a compariso with other Govt banks such as Maharashtra bank, Syndicate bank(where I`am still having a good experience) etc. One good incentive with HDFC bank loan is due to the practices of non-communication and Fast hike in interest rates, they provide you a very strong incentive to close the loans!! Some advantage this!!! HDFC staff are very efficient. This neeeds special mention as compared to Govt banks. But you hardly meet them once a year for tax declaratiopns which also can be done on-line these days