When choosing between LIC Housing Finance and SBI Home Loan, there’s no one-size-fits-all answer. The better option depends on your credit profile, priorities, and long-term cost goals.
Which is Better, SBI or LIC Home Loan?
Interest Rates & Cost:
LIC Housing Finance: Often offers competitive interest rates, sometimes slightly lower than banks for borrowers with excellent credit scores. For example, LIC’s entry-level rate can be as low as 7.15 % for high CIBIL scores, compared with SBI’s typical starting rate of 7.25 % or more.
SBI Home Loan: Market-linked and generally low and transparent rates starting around 7.25 % to 7.50 %, varying with credit score and benchmark rate.
Processing Fees & Charges:
LIC Housing Finance: Processing fee typically ranges 0.25 % to 0.50 % of the loan amount (plus GST).
SBI Home Loan: Processing fees often around 0.35 % of the loan (with specific minimum/maximum caps).
Service Network & Support:
SBI: Has India’s largest banking network, extensive branches, and digital facilities helpful for document support and quicker approvals.
LIC Housing Finance: While trustworthy and focused on housing finance, its branch network and customer support reach may be smaller.
Loan Products & Flexibility:
SBI: Offers a wide suite Maxgain overdraft, balance transfer options, special schemes for women, NRI loans, top-ups, and more.
LIC Housing Finance: Specialised products like Griha Varishtha (senior citizens) and affordable housing options.
Processing & Eligibility:
SBI: Sometimes perceived as having stricter eligibility but efficient digital workflows.
LIC Housing Finance: Often seen as more flexible with varied borrower types (salaried, self-employed, pensioners).
I hope this helps in selecting which is better LIC housing finance vs SBI home loan.
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A month ago, my cousin considered applying for a home loan when he was making plans to purchase a flat. The two most popular options he got were home loans from LIC and SBI banks. He couldn't decide which is better either, so he asked me about it. I informed him LIC home loan vs SBI home loan difference, so that he could decide based on his requirement. I have shared the same below for you.
SBI vs LIC Home Loan
I told my cousin that choosing between LIC Housing Finance and SBI Home Loan in India depends on factors like interest rates, loan tenure, processing fees, and customer service. Here’s a comparison that I hope also helps you decide, like it did for my cousin.
SBI Home Loan |
LIC Housing Finance |
SBI offers competitive rates as it is linked to the Repo Linked Lending Rate (RLLR). The interest rate typically starts from 8.40% or higher per annum, depending on the borrower’s credit score and loan amount. |
LIC’s home loan rates are slightly higher and are linked to the LIC Housing Prime Lending Rate (LHPLR). Rates start from 8.30%. |
Charges processing fees of 3.5% of the loan amount, with a maximum cap based on the loan. |
Typically, the processing charges range from 0.25% to 0.50%, making it slightly cheaper in this aspect. |
Offers a maximum tenure of 30 years. |
Also offers up to 30 years, but eligibility may depend on age and income. |
As a nationalised bank, SBI has a wider branch network and faster loan approval for salaried individuals. Customer service is robust, but can involve bureaucratic processes. |
This financial institution is known for personalised service, but processing may take slightly longer because of more documentation. |
After telling this, my cousin asked, is LIC home loan better than SBI? I clearly said choose SBI Home Loan if you want lower interest rates, faster processing, and broader accessibility. You can choose LIC Housing Finance if you prefer lower processing fees and more personalised service.
This is all about LIC home loan vs SBI home loan difference.
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Which Bank Gives 90 Percent Home Loan in India?
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The Life Insurance Corporation of India is the source of the LIC Housing Finance Trust. But State Bank is recognised as the top bank for its credit facilities. You must still make a choice when considering a home loan even though you have the option of both. But first, you must know which is better LIC housing finance vs SBI home loan.
Get best home loan deals with minimum documentation through NoBroker. Check your home loan EMI using NoBroker Home Loan EMI calculatorWhich home loan is better SBI or LIC?
You will have to refer to the following chart to get better clarity on both the loan-providing companies.
Comparison |
LIC Housing Finance |
SBI Home Loans |
Interest Rate |
From 8.30% annually |
8.40% p.a. and higher |
Service Charges |
0.25 percent to 0.5 percent of the loan amount, with a minimum loan value of Rs. 5,000 and a maximum loan amount of Rs. 15,000, plus GST. |
3.5% of the loan amount plus GST Rs. 2,000 minimum plus GST 10000 rupees maximum plus GST. |
|
The Rate for Retail Lending |
LHPLR: 16.45% |
EBR: 8.55% |
Amount of Loan |
90% of the property's value up to Rs. 30 lakh, and 80% of the value of a building between Rs. 30 lakh and Rs. 75 lakh. 75 percent of the home's worth, more than Rs. 75 lakh |
You need to speak to the bank. |
Term of Loan |
30 years |
30 years |
Minimal EMI |
Rs.659 |
Rs.649 |
Requirement |
Residents of India and NRIs who are salaried, independent, or professionals. |
Indian residents aged between 18 and 70. |
Charges for Prepayment |
Zero |
Zero |
Interest Rates |
Up to 2% per month on a missed payment. |
2% per annum. |
Now you can decide by yourself is LIC home loan better than SBI or not with this chart.
Which bank has the lowest interest rate?
You can choose between SBI and LIC HFL, both of which provide cheap interest rates. The interest rate for LIC HFL starts at 8.30% p.a., while the interest rate for SBI starts at 8.40% p.a. It is due to a rate discount offered to female borrowers. Regarding the interest rates provided by LIC Housing Finance, the CIBIL score is a key factor. The interest rate for home loans up to Rs. 15 crore is 9.00% per year for salaried, unemployed, professional, and non-professional borrowers with CIBIL scores above 700.
Which is better LIC Housing Finance vs SBI home loan must be clear to you now.
Read More: How to check LIC housing loan status? What is the processing fee for an LIC housing loan? What are SBI home loan reviews? How to reduce EMI in SBI home loan?
Which is better LIC housing finance vs SBI home loan?
Samar
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2022-12-28T20:37:37+00:00 2024-12-19T09:03:13+00:00Comment
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