SBI Vs HDFC: Today, banks offer various types of loans to meet people’s different needs. One of these is a personal loan, which is taken for marriage, medical treatment, education, or any other essential expense. Every bank offers personal loans at different interest rates, so it’s important to know which bank is offering the cheapest and best option when taking out a loan.

In this article, we compare the personal loans of SBI, the country’s largest public-sector bank, and HDFC Bank, the largest private-sector bank, so you can easily understand which bank’s loan might be more beneficial for you.

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SBI Personal Loan

State Bank of India offers personal loans to its customers at a starting interest rate of approximately 10.05 percent. However, this rate is not the same for everyone. The loan interest rate is determined based on the customer’s CIBIL score, income, and loan amount.

If a person takes a personal loan of Rs 7 lakh from SBI for 5 years at 10.05 percent, they will have to pay a monthly EMI of approximately Rs 14,890. In this way, a total of approximately Rs 8.93 lakh will have to be paid over 5 years, which includes approximately Rs 1.93 lakh as interest.

HDFC Bank Personal Loan

HDFC Bank offers personal loans to its customers at a starting interest rate of approximately 9.99 percent. Here too, the interest rate is not fixed and depends on the CIBIL score, eligibility, and loan amount.

If a personal loan of Rs 7 lakh is taken from HDFC Bank for 5 years and the interest rate is 9.99 percent, the monthly EMI will be approximately Rs 14,869. In this case, the total payment over 5 years will be approximately Rs 8.92 lakh, which includes approximately Rs 1.92 lakh in interest.

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Keep these things in mind when taking a personal loan

Before taking a personal loan, be sure to compare the interest rates of different banks. Don’t just focus on the interest rate; also inquire about processing fees, prepayment charges, and other fees beforehand. Personal loans typically have higher interest rates, so borrow only what you need. Also, ensure that your monthly EMI does not exceed 30 percent of your monthly income. If possible, reduce the interest burden by making prepayments periodically.

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