Comparative Analysis of SBI & HDFC Bank Regarding Personal Loan

Personal Loan

A personal loan, also called a signature loan, is an unsecured loan granted for personal use. This is usually used for meeting expenses like home improvement, medical emergencies or major domestic purchases. You can get a personal loan in the range of Rs.50, 000 to Rs.20, 00,000. The repayment period usually varies from 1 to 5years.

Do you want funds readily available to you whenever you desire or need, be it a sudden vacation that 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 the challenge 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 documentationsomething 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 Scheme Purpose The loan will be granted for any legitimate purpose whatsoever (e.g. expenses for domestic or foreign travel, medical treatment of self or a family member, meeting any financial liability, such as marriage of son/daughter, defraying educational expenses of wards, meeting margins for purchase of assets etc.). Eligibility You are eligible if you are a Resident Indian National having capability to repay a loan, except agriculturists. (At present, only salaried individuals are covered under the scheme). Salient Features Loan Amount Your personal loan limit would be determined by your income and repayment capacity.

Minimum: Rs.24, 000/- in metro and urban centres. Rs.10, 000/- in rural/semi-urban centres. Maximum: 12 times Net Monthly Income for salaried individuals and pensioners subject to a ceiling of Rs.10 lacks in all centres. Documents Required Important documents to be furnished while opening a Personal Loan Account: For existing bank customers. Passport size photograph From salaried individuals Latest salary slip and Form 16. Margin We do not insist on any margin amount. Interest Rates 3.25% above SBAR floating i.e. 16.00% p.a. Repayment The loan is repayable in 48 EMI. You are allowed to pay more than the EMI if you wish to, without attracting any prepayment penalty. Security NIL Processing Fee Processing 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 administrative charges.

Personal Loan Interest Rates

Interest rates ranging from 16% p.a. to 21% p.a. Processing fee - 2% of the loan amount Prepayment Charge : 4% of the prepaid amount (which would be allowed only after 6 months from the date of loan disbursal)
*

The loan amount would vary based on the city of residence, documents submitted, category of company 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 Banking Corporation Limited, India. Loans available for applicants and properties in and around the limits of cities 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 on our fees and charges, with effect from April 01, 2012. Please click here for Service Tax details. Fees and charges are subject to change at the sole discretion of the bank. Bank A bank is license by a government. Its primary activity is to lend money. Many other financial activities were allowed over time. For example banks are important players in financial markets and offer financial services such as investment funds in some countries such as Germany, banks have historically owned major stakes in industrial corporations while in other countries such as the United States banks are prohibited from owning nonfinancial companies. In Japan, banks are usually the nexus of a cross-share holding entity known as the zaibatsu. In France, banc assurance is prevalent, as most banks offer insurance 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, and countries such as China having relatively heavier regulation (including stricter regulations regarding the level of reserves). History Banks have influenced economies and politics for centuries. Historically, the primary purpose of a bank was to provide loans to trading companies. Banks provided funds to allow businesses to purchase inventory, and collected those funds back with interest when the goods were sold. For centuries, the banking industry only dealt with businesses, not consumers. Banking services have expanded to include services directed at individuals, and risk in these much smaller transactions is pooled. About Banking:-

Section 5(b) of the Banking Regulation Act, 1949 defines banking as the accepting, for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise, and withdrawal by cheque, draft, order or otherwise. Section 5 of the Banking Regulation Act, 1949 defines 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 began with the establishment of the Bank of Calcutta in Calcutta, on 2 June 1806. The bank was redesigned as the Bank of Bengal, three years later, on 2 January 1809. It was the first ever joint-stock bank of the British India, established under the sponsorship of the Government of Bengal. Subsequently, the Bank of Bombay (established on 15 April 1840) and the Bank of Madras (established on 1 July 1843) followed the Bank of Bengal. Presidency Banks Act:The presidency Banks Act, which came into operation on 1 May 1876, brought the three presidency banks under a common statute with similar restrictions on business. The proprietary connection of the Government was, however, terminated, though the banks continued to hold charge of the public debt offices 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 which sums above the specified minimum balances promised to the presidency banks at only their head offices were to be lodged. The Government could lend to the presidency banks from such Reserve Treasuries but the latter could look upon them more as a favor than as a right. HDFC Personal Loan One 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 is second to none. When shopping for personal loans, many people dont stop to consider the human factor. Thats 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. Thats why HDFC personal loan have been getting more and more popular as people are starting to realize just how easily they can get their hands on some cash with an HDFC personal loan. Something to consider is the HDFC personal loan interest rate. These interest rates can fluctuate according to a number of factors. For one, if you are getting an unsecured loan, then you can expect a slightly higher HDFC personal loan interest rate. This is because the bank is taking on more risk, which means they need to pass on to you, the borrower.

Of course, not everybody will qualify for an HDFC personal loan, but youd be surprised. Plenty of people who didnt think they were going to be able to borrow any money found themselves with sudden stacks of cash (well, a sizeable deposit into their bank account). This could easily happen to you. All you need to do is contact HDFC bank personal loan and youll be on your way.