Home Loan: Buying a home is everyone’s biggest goal, but people often struggle with where to get a home loan—from the government-trusted SBI or the private sector giant HDFC Bank. When it comes to a loan amount as large as ₹70 lakh for 20 years, even a small difference in interest rates can cost you lakhs.
Both SBI and HDFC are considered the most reliable options for home loans, but their interest rates, EMIs, and salary terms vary significantly. In this article, we’ll compare these two giants to determine which deal will be the most affordable and profitable for you.
SBI Home Loan
State Bank of India (SBI), the country’s largest public sector bank, offers its customers home loans at very attractive rates. SBI’s current starting interest rates are 7.25%. However, it’s important to understand that the bank offers this lowest interest rate only to customers with a CIBIL score of 800 or higher.
₹70 Lakh Loan
According to SBI’s terms and conditions, if you wish to take out a home loan at 7.25% for a 20-year term, your minimum monthly salary must be ₹83,340. At this rate, the bank can offer you a total loan amount of approximately ₹73.81 lakh. In this case, your monthly EMI will be ₹58,338. SBI’s biggest advantage is that its salary requirements are slightly simpler than those of private banks.
HDFC Bank Home Loan
HDFC Bank, the largest private sector player, currently offers home loans at an interest rate starting at 7.90%. The interest rate is slightly higher here than at public sector banks, which directly impacts your loan eligibility. A higher interest rate means the bank will expect a higher income so that you can repay the installments without any hassle.
₹70 Lakh Loan
To avail a ₹70 lakh loan from HDFC Bank for a 20-year term, your minimum monthly salary must be ₹1,06,000. The interest rate here is 7.90%, which limits your eligibility. According to calculations, in this case, the bank will sanction a maximum loan of ₹70.22 lakh, and your monthly EMI will be around ₹58,300. It’s worth noting that despite the higher interest rate, the EMI remains relatively flat because the bank requires a high salary.
Loan Eligibility
When you apply for a home loan, the bank doesn’t just look at your salary. Your eligibility also depends on several other factors:
A CIBIL score above 750-800 helps you get the most affordable interest rates.
The younger you are, the longer the bank will be willing to grant you a loan.
If you already have a car loan or personal loan, your ability to secure a home loan is reduced.
The bank also considers how long you’ve been employed and your company’s profile.