When other banks are offering Pl's at 16-17% getting a loan for 10% can be quite lucrative. But don’t forget it is the flat rate method.
You pay an interest of 10% on Rs.5 Lakhs which comes to Rs. 50,000. If you take Rs, 5 Lakhs for 5 years every year you will have to repay Rs. 1 Lakhs as principal plus Rs. 50,000 as interest. So this is an EMI of Rs. 12,500.
So over a 5 year period you are repaying Rs. 7.5 Lakhs which comes to an interest rate of 17.5%. So do your math and do not get carried away by 10% flat rate.