PERSONAL LOAN: SBI OR HDFC?A Comparison Guide

What is Personal Loan?

Personal Loan is a type of unsecured loan. It is meant for personal use and doesn’t require any security or collateral. It can be taken for any purpose, either to fund wedding expenditure or a medical emergency. This kind of loan is very handy as it is disbursed the fastest. Further, considering it requires minimum documentation and no disclosure of the loan’s purpose, you can use the loan amount to foot varied expenses. The loan amount ranges from Rs. 50,000 to Rs. 25 lakh and the tenure for paying back the loan varies from 6 months to 5 years.

Personal Loan Amount Limit

The personal loan limit would be determined by the borrower’s income and their repayment capacity, the minimum amount of the loan is expected to pay each month as EMI. These installments include both principal and interest amount, only processing fees has to be paid upfront (it includes 1% of the loan amount).

SBI Personal Loan

SBI personal loan is your answer when you are in dire need of funds for your own personal expenses, you can access this facility from over 3000 branches around the country. The loan will be granted to you for any legitimate purpose.

You are eligible if you a resident of India having the ability to repay the loan, except agriculturists (At present, the loan is only sanctioned to salaried individuals).

SBI offers a total transparency with regard to the rate of interest and the fees charged by them, it has the longest tenure of up to 48 months and a borrower can always reduce their interest burden as they have the freedom of reducing their tenure by prepaying the loan amount without any penalties.

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SBI Personal Loan

It requires no security which means minimum documentation (Something which is always appreciated).

Minimum loan amount is Rs.24,000 for metro and urban centres and Rs.10,000 for rural and semi urban centres, whereas maximum loan amount is 12 times net monthly income of the salaried individuals.

HDFC Bank Personal Loan

One of the best things about getting an HDFC personal loan is not just that it is really easy to qualify but the services and personal touch you get during the loan sactioning is second to none. HDFC bank put forward attractive interest rates, special offers, eligibility in 1 minute, quicker loan, easy documentation, no hidden charges, doorstep services and more.

You can walk in to the branch along with your documents and the loan will be sanctioned to you in a day, you can also apply online to make the process more hassle-free. With the speedy approvals, the loan sanctioning procedure couldn’t get easier.

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HDFC Bank Personal Loan

You are eligible for the loan, if you the resident of India and aged between 21 -60 years having atleast 2 years of job experience with minimum 1 year with your present employer.

The repayment tenure is quite flexible ranging between 12 to 60 months, HDFC Bank give special offers to their salary account holders and if you have applied for a loan before and have cleared it in 12 months or more, then you can get the personal loan without any income documentation.

HDFC vs SBI Personal Loan

HDFC Bank State Bank of India

Interest Rates 11.49% onward 13% onward

Loan Amount Rs.50,000 to Rs.15 lacs Rs.24,000 to Rs.15 lacs

Processing Fees0.8% – 1.75% (for

special companies), 2% (HDFC AC holder),

2.5% for others

2%-3%

Pre-payment Charges 4% Upto 1%

Who is the Winner?• SBI and HDFC Bank are the most sort out banks in India. A large part of Indian

consumers hold their accounts in these banks.

• State Bank of India is very active in car loans and home loans but is not a leading player in personal loan.

• HDFC Bank is a leader in this sector and does more than 1100 cr disbursal’s per month.

• HDFC personal loan is considered best for salaried customers who work in top 10000 companies.

• SBI is considered best as per rates in secured segment where in fact HDFC is considered good enough in unsecured segment.

• So take your call, do some research with both the banks and choose what is best for you as per rates, EMI and other charges.

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