Comparative Analysis of SBI & HDFC Bank Regarding Personal Loan

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Online loan may offer different methods for making payments. Many people who work with online loan prefer the convenience of having payments automatically deducted from their bank accounts.

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  • This is an impressive comparison between SBI and HDFC personal loan. It would have been better if you could you also compare ICICI, Citibank and Axis bank personal loan offers also. There is a website called BankBazaar, which compares the interest rates and also pros and cons of all the prominent banks personal loan offers.
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Comparative Analysis of SBI & HDFC Bank Regarding Personal Loan

  1. 1. Comparative Analysis of SBI & HDFC Bank Regarding PersonalLoanPersonal Loan
  2. 2. A personal loan, also called a signature loan, is an unsecured loan granted for personal use. This isusually used for meeting expenses like home improvement, medical emergencies or major domesticpurchases. You can get a personal loan in the range of Rs.50, 000 to Rs.20, 00,000. The repaymentperiod usually varies from 1 to 5years.Do you want funds readily available to you whenever you desire or need, be it a sudden vacationthat you plan with your family or urgent funds required for medical treatment? SBI Saral -Personal Loan is the answer to your questions.Access this facility from over 3000 branches across the country and confidently face thechallenge of meeting any kind of personal expenses!!Enjoy the SBI Advantage: Low interest rates. Further, we charge interest on a daily reducing balance!! Low processing charges; only 1%-2% of loan amount. No hidden costs or administrative charges. No security required ……which means minimal documentation…something that you had always wanted. No prepayment penalties. Reduce your interest burden and optimally utilize your surplus funds by prepaying the loan (1% of the loan amount will be charged if you repay the loan before 6 months). Long repayment period of up to 48 months.The SchemePurposeThe loan will be granted for any legitimate purpose whatsoever (e.g. expenses for domestic orforeign travel, medical treatment of self or a family member, meeting any financial liability, suchas marriage of son/daughter, defraying educational expenses of wards, meeting margins forpurchase of assets etc.).EligibilityYou are eligible if you are a Resident Indian National having capability to repay a loan, exceptagriculturists. (At present, only salaried individuals are covered under the scheme).Salient FeaturesLoan Amount Your personal loan limit would be determined by your income and repaymentcapacity.
  3. 3. Minimum:Rs.24, 000/- in metro and urban centre’s.Rs.10, 000/- in rural/semi-urban centre’s.Maximum:12 times Net Monthly Income for salaried individuals and pensioners subject to a ceiling ofRs.10 lacks in all centres.Documents RequiredImportant documents to be furnished while opening a Personal Loan Account:For existing bank customers.Passport size photographFrom salaried individualsLatest salary slip and Form 16.MarginWe do not insist on any margin amount.Interest Rates3.25% above SBAR floating i.e. 16.00% p.a.RepaymentThe loan is repayable in 48 EMI. You are allowed to pay more than the EMI if you wish to,without attracting any prepayment penalty.SecurityNILProcessing FeeProcessing charges are 1-2% of the loan amount. This is amongst the lowest fees in the industry.Processing fees have to be paid up front. There are no hidden costs or other administrativecharges.Personal Loan Interest Rates
  4. 4. Interest rates ranging from 16% p.a. to 21% p.a.Processing fee - 2% of the loan amountPrepayment Charge : 4% of the prepaid amount (which would be allowed only after 6 months from thedate of loan disbursal)* The loan amount would vary based on the city of residence, documents submitted, category ofcompany etc.EMI date will be the 1st or 10th of every month, depending on the loan disbursal date.Terms and conditions apply. All loans at the sole discretion of The Honking and Shanghai BankingCorporation Limited, India. Loans available for applicants and properties in and around the limits ofcities where HSBC has branches and is subject to change from time to time.Please be advised that vide Notification No. 02/2012 - ST dated March 17, 2012, a service tax of 12% +2% education cess + 1% secondary and higher secondary education cess thereon will be applicable onour fees and charges, with effect from April 01, 2012. Please click here for Service Tax details. Fees andcharges are subject to change at the sole discretion of the bank.BankA bank is license by a government. Its primary activity is to lend money. Many other financial activitieswere allowed over time. For example banks are important players in financial markets and offer financialservices such as investment funds in some countries such as Germany, banks have historically ownedmajor stakes in industrial corporations while in other countries such as the United States banks areprohibited from owning nonfinancial companies. In Japan, banks are usually the nexus of a cross-shareholding entity known as the zaibatsu. In France, banc assurance is prevalent, as most banks offerinsurance services (and now real estate services) to their clients.The level of government regulation of the banking industry varies widely, with counties such as Iceland,the United Kingdom and the United States having relatively light regulation of the banking sector, andcountries such as China having relatively heavier regulation (including stricter regulations regarding thelevel of reserves).HistoryBanks have influenced economies and politics for centuries. Historically, the primary purpose of a bankwas to provide loans to trading companies. Banks provided funds to allow businesses to purchaseinventory, and collected those funds back with interest when the goods were sold. For centuries, thebanking industry only dealt with businesses, not consumers. Banking services have expanded to includeservices directed at individuals, and risk in these much smaller transactions is pooled.About Banking:-
  5. 5. Section 5(b) of the Banking Regulation Act, 1949 defines banking as ‘the accepting, for the purpose oflending or investment, of deposits of money from the public, repayable on demand or otherwise, andwithdrawal by cheque, draft, order or otherwise.” Section 5© of the Banking Regulation Act, 1949defines a banking company’ as “any company which transacts the business of banking in India”.History of SBI Bank:-The evolution of State Bank of India can be traced back to the first decade of the 19th century. It beganwith the establishment of the Bank of Calcutta in Calcutta, on 2 June 1806. The bank was redesigned asthe Bank of Bengal, three years later, on 2 January 1809. It was the first ever joint-stock bank of theBritish India, established under the sponsorship of the Government of Bengal. Subsequently, the Bank ofBombay (established on 15 April 1840) and the Bank of Madras (established on 1 July 1843) followed theBank of Bengal.Presidency Banks Act:-The presidency Banks Act, which came into operation on 1 May 1876, brought the three presidencybanks under a common statute with similar restrictions on business. The proprietary connection of theGovernment was, however, terminated, though the banks continued to hold charge of the public debtoffices in the three presidency towns, and the custody of a part of the government balances.The Act also stipulated the creation of Reserve Treasuries at Calcutta, Bombay and Madras into whichsums above the specified minimum balances promised to the presidency banks at only their head officeswere to be lodged. TheGovernment could lend to the presidency banks from such Reserve Treasuries but the latter could lookupon them more as a favor than as a right.HDFC Personal LoanOne of the greatest things about getting an HDFC persona loan is not that it is incredibly easy to qualify,but that the service and personal touch experienced during the course of an HDFC personal loan issecond to none. When shopping for personal loans, many people don’t stop to consider the humanfactor. That’s why getting an HDFC personal loan is such a wonderful idea.Of course, there are endless reasons why people get an HDFC personal loan. You need money, right?Well, everybody needs money. That’s why HDFC personal loan have been getting more and morepopular as people are starting to realize just how easily they can get their hands on some cash with anHDFC personal loan.Something to consider is the HDFC personal loan interest rate. These interest rates can fluctuateaccording to a number of factors. For one, if you are getting an unsecured loan, then you can expect aslightly higher HDFC personal loan interest rate. This is because the bank is taking on more risk, whichmeans they need to pass on to you, the borrower.
  6. 6. Of course, not everybody will qualify for an HDFC personal loan, but you’d be surprised. Plenty of peoplewho didn’t think they were going to be able to borrow any money found themselves with sudden stacksof cash (well, a sizeable deposit into their bank account). This could easily happen to you. All you needto do is contact HDFC bank personal loan and you’ll be on your way.

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