While dreaming of buying a house, the biggest question that arises is – where to take a home loan and in which bank will it be cheaper? If you are a government bank, both SBI and private sector HDFC bank are considered to be the most reliable option for home loan, but there may be a difference in the terms of interest rate, EMI and salary. Especially if you are thinking of taking a home loan of ₹70 lakh for 20 years, then it is important to know which bank’s loan is more affordable and what should be the minimum salary for it. To make this comparison easier, we will further understand the home loans of SBI and HDFC Bank in detail.
SBI Home Loan
State Bank of India i.e. SBI is currently providing home loan at an initial interest rate of 7.25%. Before taking a loan, understand one thing here that banks immediately offer home loans at the initial rate i.e. cheapest interest to those customers whose CIBIL score is 800 or more. Also, there is no ongoing loan EMI. If you meet the eligibility then you can apply. One more thing, you will get a loan of Rs 70 lakh only if your minimum salary is as per the bank’s criteria. According to the calculation, if you want to take a home loan for 20 years at 7.25% interest rate, then you will get a loan of Rs 70 lakh only if your minimum salary is Rs 83,340. According to the calculation, you will get a total home loan of Rs 73.81 lakh on this basis. your monthly emi Rs 58,338 will be made.
HDFC Bank Home Loan
Private sector HDFC Bank is currently offering home loan at an initial interest rate of 7.90%. On this basis, if you want to take a home loan of Rs 70 lakh for 20 years, then according to the calculation, your minimum monthly salary should be Rs 1,06,000. You will get a loan up to ₹ 70,22,174, for which your monthly EMI will be ₹ 58,300. Also understand here that when you apply for a home loan, your eligibility mainly depends on your income and repayment capacity. Your home loan eligibility is also determined by your age, financial status, credit history, credit score, other financial liabilities, etc.
Whose is cheaper?
If we look at the interest rates of both the banks, it is obvious that SBI home loan is cheaper. The minimum salary criteria is also a bit soft in this. This means that you will get a home loan as per your need even at a slightly lower salary in SBI compared to HDFC Bank.
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