When considering a personal loan, it’s essential to compare rates from different banks to find the most affordable option. In this comparison, we’re looking at the personal loan offerings from State Bank of India (SBI) and HDFC Bank. SBI is currently offering an interest rate of 10.30% on personal loans, while HDFC Bank offers 10.90%.
Using a loan amount of Rs 8 lakh and a 5-year repayment period, we can calculate the total interest and total amount to be repaid. For SBI, the monthly EMI would be Rs 17,116, with a total interest payment of Rs 2,26,958 and a total amount to be repaid of Rs 10,26,958. In contrast, HDFC Bank would require a monthly EMI of Rs 17,354, with a total interest payment of Rs 2,32,240 and a total amount to be repaid of Rs 10,32,240.
Comparing the two, SBI’s interest rate of 10.30% is slightly lower than HDFC’s 10.90%. This means that SBI’s EMI would be lower, with a difference of Rs 238 between the two. This translates to paying Rs 238 more per month for a loan from HDFC. Based on these calculations, SBI’s personal loan plan appears to be the more affordable option. However, it’s essential to remember to review and compare the terms and conditions of each loan before making a final decision.