# Bank Loan Comparison Matrix

Compare verified interest rate bands and processing charges across major Indian financial institutions:
- **State Bank of India (SBI)**
- **HDFC Bank**
- **ICICI Bank**
- **Axis Bank**
- **Kotak Mahindra Bank**
- **Bank of Baroda**
- **Punjab National Bank (PNB)**
- **Yes Bank**

*All rates sourced from official schedule filings and verified periodically.*

## Comparison Engine Mechanics & Scoring Algorithm
1. **Benchmark Linked Lending Rate (EBLR/RLLR)**:
   - Floating rate retail loans are tied directly to an external benchmark (typically the RBI Repo Rate, currently 6.50%).
   - `Interest Rate = External Benchmark (6.50%) + Bank Credit Risk Spread`.
2. **Effective Annual Percentage Rate (APR)**:
   - Reflects true total borrowing cost factoring in the base interest rate, upfront processing fees, and mandatory 18% GST on all charges.
   - `Effective APR = Internal Rate of Return (IRR) of net loan proceeds vs monthly EMIs`.
3. **Objective Ranking**:
   - Rankings are determined strictly by verified effective APR and transparent borrower protections. Zero sponsored promotions or pay-to-play placements.

## Safe Borrower Application Flow
1. **Calculate True Borrowing Cost**: Use our calculators to model full interest outgo, processing fees, and 18% GST.
2. **Demand Mandatory Key Fact Statement (KFS)**: Before signing any agreement, request the standard RBI KFS summarizing all fees and APR (RBI/2023-24/119).
3. **Apply Directly via Official Bank Channels**: Submit your loan application directly through official netbanking/mobile apps (e.g., SBI YONO, HDFC NetBanking, ICICI iMobile) or branch visits to prevent third-party broker commissions and data leaks.
4. **Verify Prepayment Rules**: Floating-rate individual loans have **0% foreclosure/prepayment penalties** under the RBI (Pre-payment Charges on Loans) Directions, 2025 (RBI/2025-26/64), for loans sanctioned or renewed on or after 1 January 2026.