Hi everyone,

I am purchasing an under-construction property in Bengaluru (Possession date: June 2029) with a total property cost of ₹1.93 Crore. I am planning to take a home loan of ₹1.50 Crore with a 30-year tenure.

The builder's CRM team shared initial quotes from two linked banks: Canara Bank at 7.15% ROI and HDFC Bank at 7.20% ROI.

Here is the cost breakdown provided by the CRM team:

Option A: HDFC Bank (7.20% ROI)

• Processing Fee: ₹10,000 + GST (Salaried offer)
• MOD / Stamp Duty: Quoted at 0.5% of Loan Sanction Amount under Article 5 (Govt of KA)
• Agreement & Misc Fees: Loan agreement ₹618 + Miscellaneous ₹2,000
• Mortgage / Prepayment: No Registered Mortgage, No Prepayment / Pre-closure charges
• Insurance: Property insurance required

Option B: Canara Bank (7.15% ROI)

• Processing Fee: ₹0 (Waived off)
• MODTD: Quoted at 0.6% of loan amount post-registration
• Legal & Administrative: Legal report, vetting, e-stamp ~₹8,000 approx.
• Misc Fees: Zero CIBIL, CERSAI, or inspection charges
• Mortgage / Prepayment: No Prepayment / Pre-closure charges
• Insurance: Property insurance required

My Plan & Strategy:

• Pre-EMI Prepayments: Construction-linked disbursemets will begin after sanction. I plan to make partial prepayments during this under-construction phase (2026–2029) to actively reduce the overall loan principal before taking possession in June 2029.

Key Questions & Clarifications I Need Advice On:

1. Interest Rate Stability & Spread Creep (RLLR vs EBLR): Which bank is safer against arbitrary spread increases over a 10–20 year horizon? Is Canara Bank's public-sector RLLR structure significantly more transparent than HDFC's EBLR when benchmark rates shift?
2. Tranche Disbursement SLA in Bengaluru: How smooth is Canara Bank with releasing construction-linked tranche payments upon receiving demand notes from the builder compared to HDFC Bank? Does Canara require physical site engineer visits for every single tranche release?
3. Insurance Bundling Pushback: Has anyone dealt with compulsory bundling of Single Premium Life/Loan Protection insurance from either bank? Can property insurance be easily self-sourced from an independent IRDAI provider?

Which bank would you recommend for a ₹1.5 Cr loan considering long-term interest transparency, overall setup fees, and disbursement convenience?