Home Loan: Home loans have become cheaper after the Reserve Bank of India cut the repo rate, and banks have passed on this benefit to customers. However, while taking a home loan from the country's two major banks, SBI and HDFC Bank, it is important to know which of the two banks will provide you a cheaper home loan.
Here, know that you will be able to get a home loan at the cheapest rate only if your CIBIL score, i.e., credit score, is excellent or very high. It is measured between 300 and 900. For example, if a customer is taking a home loan of Rs 60 lakh from these banks for 20 years of repayment, then let us understand which bank will be cheaper to take it from through a calculation.
SBI Home Loan- State Bank of India is offering a home loan of Rs 60 lakh for 20 years at an initial interest rate of 7.50 percent. According to SBI's home loan calculator, your monthly EMI on this will be Rs 48,336. Over 20 years, you will pay Rs 56,00,542 as interest. In this way, you will have to pay a total of Rs 1,16,00,542 to the bank. Keep in mind here, as per the rules of the bank, while taking a home loan, you may also have to pay processing charges.
HDFC Bank Home Loan -
If you want a home loan from the private sector, HDFC Bank right now, then it is currently available at an initial interest rate of 7.90 percent. If you are getting a home loan from HDFC Bank at this interest rate, then the EMI of a home loan of Rs 60 lakh for 20 years of repayment will be Rs 49,814. That is, according to the calculation, you will have to repay Rs 59,55,273 for this loan only. That is, HDFC Bank has to return a total of Rs 1,19,55,273 to you in the end.
Whose home loan is cheaper?
If your CIBIL score is 800 or more, then you are very likely to get a home loan at a low interest rate. On comparing different banks, it is clear that taking a home loan from the State Bank of India is more economical. Due to its low interest rates, you will have to pay a lower monthly installment (EMI), which will save your total payment.
Disclaimer: This content has been sourced and edited from TV9. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.
