HDFC or SBI: Which Bank Offers the Best Personal Loan Terms and Conditions?

The State Bank of India and the HDFC Bank are a few of the most sorted out banks in the country. Several Indian citizens have accounts in the State Bank of India and the HDFC Bank. Therefore, whenever the account holders of both banks need personal loans, they differentiate between SBI personal loans and HDFC personal loans to determine which bank offers the maximum benefits. The State Bank of India and HDFC Bank offer personal loans to meet your requirements. The guide will give a glimpse of SBI personal loans in addition to HDFC personal loans, which personal loans you find suitable.

Difference Between SBI Personal Loans and HDFC Personal Loans

The State Bank of India is the largest bank in India that offers account holders exclusively tailored personal loans. The SBI personal loans are advantageous for account holders when they urgently require funds. Individuals can go to the State Bank of India website and learn about the features of personal loans. SBI personal loans have low-interest rates. Their interest rates depend on a regular reduction balance which decreases interest debt. You can avail of SBI personal loans as a Term Loan and an Overdraft Facility. You can choose loan mode disbursal according to your requirements.

On the other hand, HDFC personal loans are unsecured and do not require any assurance for applicants to avail of the loan. HDFC personal loans are swift and disbursed within a few hours. Borrowers can access funds rapidly. Applying for HDFC personal loans is uncomplicated, and borrowers can apply through multiple channels.

SBI Personal Loans vs. HDFC Personal Loans

The details about SBI and HDFC personal loans are updated as of the 3rd and 16th of January.

Privileges and Characteristics of SBI Personal Loans

The characteristics and privileges of SBI personal loans are:

  • No prepayment fees
  • Prompt and effortless loan approval
  • Exclusive personal loan schemes and discounts for existing account holders
  • Less paperwork
  • Zero hidden fees
  • According to certain terms and conditions, the bank might increase loan eligibility criteria
  • Minimum equated monthly installment
    Offers personal loans to individuals between the age of 21 years to 58 years
  • Minimum processing charges
  • Loan amounts are high

Privileges and Characteristics of HDFC Personal Loan

The privileges and characteristics of HDFC personal loan are:

  • No requirement for assurance, guarantor, or security charges.
  • Exclusive interest rates offer for HDFC bank account holders
  • Cutthroat interest rates
  • Availability of doorstep services
  • Rapid application procedure and swift disbursal
  • Custom-built personal loans
  • Simple paperwork
  • Affordable repayment options

Documents Important for SBI Personal Loan

The documents important for SBI personal loans are:

  • Address Proof
  • Two passport-size photographs
  • Identity Proof
  • Recent bank account statement
  • Salary slips

Documents Important for HDFC Personal Loan

The documents important for HDFC personal loans are:

  • Voter Card
  • Adhaar Card
  • Driving License
  • Passport
  • Last three months’ bank statement
  • Last six months updated passbook
  • Current salary slip
  • Current salary certificate

Eligibility Criteria of SBI Personal Loans

SBI has set key eligibility criteria for SBI personal loans depending on which bank provides personal loans. With the personal loan eligibility criteria tool of the State Bank of India, you can check whether you can apply for a personal loan in the State Bank of India. The tool will inform you of the amount you can receive from the lender. It gives you a swift audit and lets you learn about the loan amount you can get from the lender after considering your credit score, monthly income, equated monthly installment, etc.

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The eligibility criteria for applying for a personal loan in the State Bank of India depends on the factors mentioned below:

  • Minimum and maximum age of the applicant is 21 years and 58 years, respectively.
  • The applicant’s monthly income should be Rs. 15000.
  • The total work experience of the applicant should be two years.
  • The applicant should stay in their current residence address for a year.
  • The State Bank of India also considers other financial liabilities such as current loans, equated monthly installments, etc.

Eligibility Criteria for HDFC Personal Loans

The eligibility criteria for HDFC personal loans are as follows:

  • People working in private and public firms
  • People working in several departments under State Government and Central Government.
  • People employed in local institutions
  • The applicant should be between the age of 21 and 60 years.
  • People with two years of work experience and one year of work experience in the current company.
  • The applicant’s minimal yearly and monthly income must be Rs. 25000.
  • The eligibility criteria for applying for HDFC personal loans may be based on the applicant’s credit score.

What is the Application Procedure for SBI Personal Loan?

SBI allows you to apply for SBI Personal Loans online and offline. To follow the online process, you can go to the SBI website. You can visit the personal loan section, fill out the application form with your personal and professional information, and submit the form. Bank representatives will contact you for further processing. You must visit any bank branch to apply for SBI personal loans through the offline procedure.

What is the Application Procedure for HDFC Personal Loans?

You can apply for HDFC personal loan through an online and offline process. Both the application procedures are described below:

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Online Process

If you apply for HDFC personal loans online, you can follow the steps given below:

  • Visit the official website of HDFC bank and log into your HDFC internet banking account.
  • New customers should create a new internet banking account.
  • Fill up the personal loan application form.
  • Submit every required document.
  • It will help if you wait for the bank to transfer the funds to your account after the bank sanctions your loan application.

Offline Process

If you want to apply for HDFC personal loans through the offline procedure, you can go to any bank branch and request the application form. Fill out the form and submit the relevant documents. A bank representative would aid in completing the documentation process. When the bank finds you eligible for HDFC personal loan, they will transfer funds into your account.

Conclusion

The State Bank of India is a dominant player in Home Loans and Car Loans but could be more active in personal loans. On the other hand, HDFC Bank is very active in personal loans and does above Rs. 1100 crores disbursal monthly. It designed its loan to suit the requirements of salaried account holders of the bank. They offer interest rates on personal loans to their salaried account holders.

The State Bank of India is considered the best bank regarding secured segments, and the HDFC Bank is considered the best regarding unsecured segments. Individuals needing personal loans will get different interest rates as banks offer different rates on personal loans. Personal loans are designed depending on credit score, income, and the borrowers’ current employer. Therefore, compare the difference between SBI and HDFC personal loans and check which one is best for you.

  • Personal Loan Interest Rates March 2024
    HDFC Bank10.75% - 14.50%
    ICICI Bank10.75% - 19.00%
    IndusInd Bank10.25% - 26.00%
    Kotak Bank10.99%
    RBL14.00% - 23.00%
    SMFG India Credit12.00% - 24.00%
    Standard Chartered Bank11.49%
    Tata Capital10.50% - 24.00%
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