Buying your own home is considered a big achievement in today’s times. Due to rising property prices, it has become difficult for most people to buy a house without a home loan. In such a situation, it is very important to choose the right bank and a low interest rate. Let’s compare the home loans of the two major government banks of the country – SBI and PNB – and know whose EMI will be more beneficial on a loan of 25 lakhs.
Interest Rate Comparison:
SBI Home Loan: The interest rate starts from 7.50% per annum (may change depending on CIBIL score and loan amount).
PNB Home Loan: Interest rate starts from 8.25% per annum (may change depending on CIBIL score and loan amount).
EMI calculation for a loan of Rs 25 lakh (for a tenure of 20 years):
1. SBI Home Loan:
Interest rate: 7.50% p.a.
EMI per month: ₹20,140
Total repayment in 20 years: ₹48,33,559
Total interest: ₹23,33,559
2. PNB Home Loan:
Interest rate: 8.25% p.a.
EMI per month: ₹21,302
Total repayment in 20 years: ₹51,12,394
Total interest: ₹26,12,394
Comparison conclusion:
EMI difference: SBI EMI is ₹1,162 less per month than PNB.
Interest difference: You will pay ₹2,78,835 less interest on SBI.
Recommendation: SBI home loan is more beneficial than PNB as it has lower interest rates and lower EMIs.
Things to keep in mind before taking a loan:
CIBIL Score: A good CIBIL score (750+) helps in getting a lower interest rate.
Processing Fee: Banks charge processing fees; compare them.
Additional Charges: Enquire about other loan-related expenses.
Loan Tenure: The longer the tenure, the higher the interest. Try to repay the loan early.
People Also Ask (Google Search FAQs):
1. What is the interest rate of an SBI home loan?
The interest rate of SBI home loans starts at 7.50% per annum.
2. What is the EMI on a PNB home loan?
The PNB EMI for a loan of ₹25 lakh over a tenure of 20 years comes to ₹21,302 per month.
3. How to get a home loan at a low interest rate?
Maintain a good CIBIL score and compare offers from different banks.
4. What is the tenure of a home loan?
The tenure of a home loan can usually range from 5 to 30 years.
5. Which home loan is better between SBI and PNB?
SBI home loan is better in terms of interest rate and EMI than PNB. Disclaimer: This information is for educational purposes only. Before taking a loan, confirm all the terms and conditions with the bank and consult your financial advisor.