SBI vs Canara Bank home loan
At typical rates Canara Bank (7.7%) is 0.05 points cheaper than SBI (7.75%): about ₹ 154 less a month on ₹ 50 Lakhs over 20 years, and ₹ 37 Thousand less interest. Rate bands checked against both lenders' public cards on 11 Oct 2026.
What you'll learn:
- SBI and Canara Bank home loan rates side by side
- What the gap costs on your loan
- Complaints and borrower reports
Compare Offers
Enter both offers to compare.
SBI or Canara home loan: which is better?
Two public-sector banks, priced within a whisker of each other, neither yet repriced for October's repo hike. Canara starts a little lower at 7.15% against SBI's 7.25%, but its band runs to 10%. Canara grades every borrower into a credit risk grade, Prime and 1 to 4, and the grade decides most of the spread.
Canara has two small advantages worth knowing. Women borrowers pay 0.05% less, and the concession it gives on housing loans stays fixed for three years from first disbursement. It is also waiving its home-loan processing fee until 31 December 2026, against up to ₹15,000 at SBI.
Both banks saw complaints about loans rise sharply in 2025-26: up 68% at SBI and 71% at Canara, by their own annual reports. Neither number says much on its own given their size, but it is a reason to get the disbursal timeline in writing.
Pick SBI if
- your grade at Canara would be 3 or 4, where SBI's lower ceiling wins
- you want MaxGain's overdraft feature
Pick Canara Bank if
- you are a woman borrower or co-borrower, for the 0.05% concession
- you are borrowing before 31 December 2026 and want the fee waiver
- Canara puts you in its Prime grade
SBI vs Canara Bank home loan comparison
The compare loan offers calculator above opens with each lender's typical home loan rate on ₹ 50 Lakhs over 20 years. Add the processing fee from each quote to compare total cost, not just EMI, then model your own loan on the home loan EMI calculator.
| Measure | SBI | Canara Bank |
|---|---|---|
| Rate band | 7.25% to 8.55% | 7.15% to 10% |
| Starting rate | 7.25% | 7.15% |
| Typical rate we model | 7.75% | 7.7% |
| EMI at starting rate (₹ 50 Lakhs, 20 yrs) | ₹ 39,519 | ₹ 39,216 |
| EMI at typical rate | ₹ 41,047 | ₹ 40,893 |
| EMI at top of band | ₹ 43,550 | ₹ 48,251 |
| Total interest at typical rate | ₹ 48.5 Lakhs | ₹ 48.1 Lakhs |
| Processing fee on ₹ 50 Lakhs | ₹ 15,000 | Waived until 31 Dec 2026 |
| Interest + fee, full term | ₹ 48.7 Lakhs | ₹ 48.1 Lakhs |
| Longest tenure | 30 years | 30 years or age 75 |
| Prepayment charge | No prepayment penalty | Nil |
| October 2026 repo hike in the card | Not yet | Not yet |
| Card checked | 11 Oct 2026 | 11 Oct 2026 |
SBI: Regular term loan by CIBIL score (EBLR 7.90%); Maxgain and top-up price higher. Canara Bank: RLLR 8.00% − 0.85% to + 2.00% by risk grade and loan size; women borrowers 0.05% lower. Fees are before 18% GST and come from each lender's fee page, checked 11 Oct 2026; SBI charges 0.35%, min ₹5,000, max ₹15,000 (salaried); Canara Bank charges 0.5%, min ₹1,500, max ₹10,000. The calculator opens with both fees filled in. Canara Bank is waiving its home loan processing fee until 31 Dec 2026.
After the October 2026 repo hike
Neither card had moved for RBI's 0.25% repo hike of 7 October 2026 when we checked. Expect both to rise by about that much, which leaves the gap between them roughly where it is. Stress the EMI at +0.5% before you lock a tenure.
What the gap costs at different loan amounts
Typical rates (SBI 7.75%, Canara Bank 7.7%). 20 years, reducing balance.
| Loan | SBI EMI | Canara Bank EMI | Monthly gap | Interest gap, full term |
|---|---|---|---|---|
| ₹ 30 Lakhs | ₹ 24,628 | ₹ 24,536 | ₹ 92 | ₹ 22.2 Thousand |
| ₹ 50 Lakhs | ₹ 41,047 | ₹ 40,893 | ₹ 154 | ₹ 37 Thousand |
| ₹ 75 Lakhs | ₹ 61,571 | ₹ 61,340 | ₹ 231 | ₹ 55.5 Thousand |
| ₹ 1 Cr | ₹ 82,095 | ₹ 81,787 | ₹ 308 | ₹ 74 Thousand |
Complaints record
SBI's complaints fell 26% in 2025-26 to 21,09,520, but those about loans rose 68% to 26,102. Canara Bank's complaints rose 4% in 2025-26 to 4,13,931, and those about loans rose 71% to 20,126.
| FY 2025-26 | SBI | Canara Bank |
|---|---|---|
| Complaints received | 21,09,520 (-26%) | 4,13,931 (+4%) |
| Escalated to the RBI Ombudsman | 24,356 (-11%) | 5,650 (+13%) |
| About loans and advances | 26,102 (+68%) | 20,126 (+71%) |
Bigger lenders log more because they have more customers, so read the trend, not the raw count. Read the trend and the ombudsman share rather than ranking banks on the raw count. Sources: SBI Annual Report 2025-26, pp. 264–265 (Schedule 18, note 18.11); Canara Bank Annual Report 2025-26, pp. 487–489 (note 11).
What borrowers report
| Lender | App | Google Play rating |
|---|---|---|
| SBI | YONO SBI | 4.2★ from 30.7 lakh ratings |
| Canara Bank | Canara ai1 | 4.4★ from 17.2 lakh ratings |
Ratings read on 11 Oct 2026.
SBI: recurring themes
- Complaint: Slow home-loan processing: borrowers describe gaps between sanction and disbursal, and being passed between the branch and SBI's loan processing centre (RACPC). (Moneylife, ConsumerComplaints.in)
Themes are listed only when two independent sources (court rulings, news or complaint forums) agree; treat them as things to check, not a verdict. For Canara Bank we found no loan theme that met that bar.
What to ask before you sign
- Canara: which credit risk grade your application falls in
- Canara: how long the opening concession lasts and what the rate becomes after
- Both: when your loan resets for the October repo hike
Then put both written quotes, with their fees, into the calculator at the top of this page, and try a prepayment on the home loan EMI calculator to see how the gap changes if you pay early.
More on each lender: the SBI EMI calculator and the Canara Bank EMI calculator, each with its full rate card by loan type. Every lender's home loan rate and fee is on the home loan interest rates page.
Other comparisons
- SBI vs HDFC home loan
- SBI vs LIC Housing Finance home loan
- SBI vs ICICI home loan
- SBI vs Bank of Baroda home loan
Sources
The lender pages behind the rate bands, and RBI's disclosure rules. This site does not update rates in real time; check the effective date on each card.
- SBI Home Loans Interest Rates (Current)Official home-loan card, starting band, and effective-date notes.
- SBI Personal Loan scheme interest ratesMCLR-linked personal-loan spreads and effective rate bands.
- SBI auto loan interest ratesCar loan rates by CIBIL score and tenure.
- SBI education loan interest ratesStudent Loan Scheme, Scholar, and Global Ed-Vantage rates.
- SBI home loan fees and chargesProcessing fee, tenure and prepayment terms used in the table above.
- Canara Bank rates of interest for retail lending schemes linked to RLLRHousing, vehicle, personal, and education loan rates by credit risk grade and loan size.
- Canara Bank interest rate range on loansRange and mean rate of loans actually sanctioned, by product.
- Canara Bank home loan fees and chargesProcessing fee, tenure and prepayment terms used in the table above.
- RBI notifications indexKey Facts Statement and retail-lending disclosure rules for rate, fees, and EMI.
- RBI (Pre-payment Charges on Loans) Directions, 2025When regulated lenders may not levy pre-payment charges on floating-rate individual loans for non-business purposes.
Last updated on 11 Oct 2026.