SBI Vs HDFC Bank Home Loan: Before building your house, check the interest rates of both the big banks, this way you will save ₹ 2.20 lakh on a loan of ₹ 30 lakh.

Buying a beautiful house of one’s own is the biggest and special dream of every person’s life. But in today’s times, due to skyrocketing property prices, most people have to take the help of home loan to fulfill this dream. Choosing the right bank is the most important step when taking a home loan, as even a small difference in interest rates of just 0.50% can have a huge impact on your long-term budget. If you are also planning to take a home loan to buy a new house or flat in the coming days, then definitely compare the rates of different banks present in the market. Today we are going to explain to you in simple words the entire mathematics of the latest home loan interest rates and EMI of the country’s largest government bank State Bank of India (SBI) and the largest private sector bank HDFC Bank. SBI (State Bank of India) Home Loan Interest Rates SBI, the most trusted public sector and the country’s largest government bank, is currently providing home loans to its customers at very competitive rates. Starting interest rate: The starting interest rate of home loan in SBI is 7.25 percent. Point to keep in mind: This is the minimum and starting rate of the bank. The rate at which you will get the loan depends entirely on your eligibility, such as your CIBIL/Credit Score, total loan amount, type of your job and monthly income. HDFC Bank Home Loan Interest Rates HDFC Bank, the largest private sector giant, also provides various customized home loan offers and digital processing facilities to its customers. Starting Interest Rate: The starting interest rate for home loan in HDFC Bank starts from 7.75 percent. Point to keep in mind: Like SBI, this is also an initial floating rate. The bank offers loans at this minimum rate to applicants with a good credit score and stable income, while this rate may increase if the profile is risky. Complete mathematics of EMI on home loan of ₹30 lakh: SBI Vs HDFC Let us understand from an example that if you take a home loan of ₹30 lakh for a tenure of 20 years (240 months), how much will be the impact on your pocket according to the initial interest rates of both the banks: Standards of comparison SBI (State Bank of India) HDFC Bank Loan Amount (Principal Amount) ₹30,000,000 ₹30,000,000 Loan Tenure 20 years 20 years Initial Interest Rate 7.25% 7.75% Monthly EMI ₹23,711 ₹24,628 Total interest to be paid ₹26,90,707 ₹29,10,830 Total Repayment in 20 years ₹56,90,707 ₹59,10,830 Where will you save the most? It is clear from the above data and calculations that the country’s largest government bank SBI is currently offering home loans at 0.50% lower interest rate than HDFC Bank. If you take a loan from SBI, you will have to pay ₹917 less EMI every month compared to HDFC. Through SBI, you can directly save ₹ 2,20,123 (approximately Rs 2.25 lakh) in the form of interest during the entire period of 20 years. Therefore, before giving the final signature for the loan, weigh the processing fees, hidden charges and offers of both the banks carefully.