Home loan eligibility is a set of criteria based on which a financial institution assesses the creditworthiness of a customer to avail and repay a specific loan amount.
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While dreaming of buying a house, the biggest question is – where to get a home loan and which bank will be cheaper? If you are a public sector bank, SBI and private sector HDFC Bank, both are considered the most reliable options for home loans, but there can be differences in interest rates, EMI and salary conditions. 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 economical and what should be the minimum salary for this. To make this comparison easier, we will understand the home loans of SBI and HDFC Bank in detail below.
SBI Home Loan
The State Bank of India (SBI) currently offers home loans at an interest rate starting at 7.25%. Before taking out a loan, understand that banks immediately offer home loans at this introductory rate, or the lowest interest rate, to customers with a CIBIL score of 800 or higher, and without any existing EMIs. If you meet the eligibility criteria, you can apply. Additionally, you will receive a loan of ₹70 lakh only if your minimum salary meets the bank’s criteria. According to calculations, if you were to take out a home loan at a 7.25% interest rate for 20 years, you would only receive a loan of ₹70 lakh if your minimum salary was ₹83,340. According to calculations, you would receive a total home loan of ₹73.81 lakh based on this rate. Your monthly EMI would be ₹58,338.
HDFC Bank Home Loan
Private sector HDFC Bank currently offers home loans at a starting interest rate of 7.90%. Based on this, if you want to take out a home loan of ₹70 lakh for a 20-year term, your minimum monthly salary should be ₹1,06,000. You can get a loan of up to ₹70,22,174, with a monthly EMI of ₹58,300. It’s also important to understand that when you apply for a home loan, your eligibility primarily depends on your income and repayment capacity. Your age, financial situation, credit history, credit score, and other financial liabilities also determine your home loan eligibility.
Whose is cheaper?
Considering the interest rates of both banks, it’s clear that SBI’s home loan is cheaper. The minimum salary criteria is also slightly more lenient. This means that even with a slightly lower salary at SBI compared to HDFC Bank, you can still get a home loan that meets your needs.
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