ICICI Home Loan vs SBI Home Loan: Which Saves You More Money in 2025?
Choosing between ICICI Home Loan and SBI Home Loan can significantly impact your budget in 2025. SBI offers a lower starting interest rate of 8.00%, while ICICI begins at 8.55%, which can change your monthly EMIs. SBI also charges a lower processing fee at 0.35%, compared to ICICI’s 0.50%–1%, helping you save money upfront. Understanding the differences in interest rates, prepayment rules, and eligibility criteria will help you pick the loan that best fits your home-buying needs.
ICICI Home Loan vs SBI Home Loan: Which One Helps You Save More in 2025?
Choosing between home loan ICICI vs SBI can make a big difference to your long-term savings. SBI offers interest rates starting from 7.50% to 8.45%, while ICICI ranges from 7.65% to 8.15%—a small difference that can save you thousands over the loan tenure. Both banks allow borrowing up to ₹5 crore with repayment periods of up to 30 years.
This ICICI vs SBI home loan comparison will help you understand interest rates, processing fees, prepayment rules, and key benefits, so you can choose the most cost-effective option for 2025.
ICICI Home Loan Interest Rate
| Rate of Interest | Max funding | ||
| Credit Score | ROI | Loan Amount | Funding % |
| >=800 | 7.65% | <=30 Lakh | 90% |
| 780 – 790 | 7.80% | ||
| 750 – 779 | 7.85% | 30<75 Lakh | 88% |
| 730 – 750 | 8.15% | ||
| – | – | 75 Lakh> | 88% |
| – | – | ||
| Apply Now | |||
SBI Home Loan Interest Rate
| Rate of Interest | Max funding | ||
| Credit Score | ROI | Loan Amount | Funding % |
| >=825 | 7.50% | <=30 Lakh | 90% |
| 750 – 824 | 7.70% | ||
| 700 – 749 | 7.80% | 30<75 Lakh | 80% |
| 650 – 699 | 8.15% | ||
| 550-649 | 8.45% | 75 Lakh> | 75% |
| NTC | 7.80% | ||
| NTC=101-150 | 8.25% | – | – |
| NTC=150-200 | 7.70% | – | – |
| Apply Now | |||
ICICI Home Loan vs SBI Home Loan: Key Comparison Overview
A close look at the details behind the SBI home loan vs ICICI home loan reveals significant differences that could affect your long-term financial commitment. Both lenders are among India’s top banking institutions, but their home loan products are different in several important aspects.
| Parameters | SBI Home Loan | ICICI Home Loan |
| Interest Rate Range | 7.50% – 8.45% | 7.65% – 8.15% |
| Processing Fee | 0.35% + GST (Min ₹2,000, Max ₹10,000) | 0.50% – 1% + GST |
| Administrative Fee | None listed | 0.25% or ₹5,000 (whichever is lower) |
| Age Eligibility | 18-70 years | Salaried: 20-65 years
Self-employed: 21-70 years |
| Maximum Loan Amount | Up to ₹5 crore | Up to ₹5 crore |
| Loan Tenure | Up to 30 years | Up to 30 years |
| Minimum Income (Salaried) | No specification | ₹25,000 monthly |
| EMI per Lakh | ₹645 | ₹649 |
| Prepayment Charges | None on floating rate loans | 2% on fixed-rate loans |
| Best Rate Credit Score | Above 750 | Above 800 (9.00%) |
| Special Features | MaxGain home loan with overdraft facility
FlexiPay option for young professionals |
Step-up home loans
Home top-up loans Land loans |
Specialized options can be found with ICICI in the form of home top-up loans, step-up home loans that are designed for young salaried professionals, and land loans. SBI offers similar varieties with slightly different terms and conditions. This ICICI Home Loan vs SBI home loan comparison highlights their unique features, helping you choose the right lender for your needs.
Which Home Loan Saves You More in 2025?
When comparing home loan ICICI vs SBI, even a small difference in interest rates can save you lakhs over the full loan tenure. That’s why it’s important to look beyond just the headline interest rate and understand the benefits each bank offers.
SBI has an edge with its MaxGain overdraft facility, where you can park extra money in your loan account to reduce interest instantly—without any additional charges. ICICI Bank, on the other hand, offers special interest rates starting from 8.55% for borrowers with a credit score above 800, giving strong applicants a chance to save more.
For young professionals, SBI’s FlexiPay Home Loan is a great option. It increases loan eligibility and allows you to pay only interest for the first 3–5 years, which is helpful if you expect your income to rise.
In both cases, the best home loan interest rate SBI vs ICICI is offered to applicants with a credit score above 750.
Additional Features That Can Affect Your Savings
When comparing home loan ICICI vs SBI, it’s not just interest rates and processing fees that matter. Both banks offer extra features that can help you save more over the long term. These additional benefits play a big role in choosing the right lender.
Balance Transfer Options
Both ICICI Home Loan vs SBI home loan allow you to reduce your loan burden through attractive balance transfer facilities.
- ICICI Bank links its balance transfer rates to the repo rate and allows quick transfers with minimal paperwork.
- SBI accepts transfers from banks and housing finance companies and offers special reduced interest rates for women borrowers.
Key points:
- ICICI requires a minimum transfer amount of ₹15 lakhs and a CIBIL score of 700 for salaried applicants.
- ICICI offers quick approvals with 5-step provisional sanctions.
Loan Protection Insurance
Both banks also offer insurance plans to safeguard your home loan:
- ICICI Bank provides Home Insurance and Secure Mind & Loan Protect, with no medical checkup required for coverage up to ₹3 crore.
- SBI’s Rinn Raksha covers co-borrowers and has flexible premium payment options.
ICICI also offers a fixed life cover option that stays the same for 20 years.
Prepayment & Foreclosure Options
Prepayment rules differ between the lenders:
- SBI charges no prepayment penalty on floating-rate home loans.
- ICICI Bank allows prepayments after 12–18 months of EMIs.
SBI’s processing fee is also lower at 0.35% (minimum ₹2,000 and maximum ₹10,000 + GST).
Tax Benefits
Both banks offer the same tax advantages:
- Deduction up to ₹2 lakh on interest under Section 24(b)
- Deduction up to ₹1.5 lakh on principal under Section 80C
These savings add up significantly over your loan tenure.
Choosing the Right Home Loan for Your Financial Future
In the home loan interest rate SBI vs ICICI comparison, SBI usually offers a more economical deal for most borrowers in 2025. With SBI starting at 8.00% and ICICI at 8.55%, you save more on interest over 20–30 years. SBI also gives you a cost advantage with its lower processing fee.
However, your personal financial situation matters ICICI Home Loan vs SBI home loan :
- Self-employed borrowers may benefit from ICICI’s special loan schemes.
- Salaried individuals with strong credit scores get better rates with SBI.
- SBI FlexiPay supports young buyers by allowing interest-only payments initially.
- SBI MaxGain helps you reduce interest using its unique overdraft feature.
- ICICI’s step-up loans are great for people expecting income growth.
The smartest approach is to compare both offers carefully. With a strong credit score, a good banking relationship, and detailed ICICI vs SBI home loan comparison, you can negotiate better terms and pick the loan that suits your financial goals perfectly.
How NoBroker Can Help You
Choosing between ICICI and SBI can feel confusing, but NoBroker makes the entire process simple and stress-free. Here’s how:
- Free Home Loan Assistance with expert guidance from start to finish
- Compare ICICI vs SBI home loan interest rates instantly in one place
- Check loan eligibility in minutes with the NoBroker Home Loan Eligibility Checker
- Get end-to-end support for documentation, application, and approval
- Dedicated Relationship Manager to handle bank coordination on your behalf
- Faster processing with zero brokerage and complete transparency
With NoBroker, you get the best loan offers without running from one bank to another.
Conclusion
Both SBI and ICICI offer strong home loan options, but the right choice depends on your income, credit score, and financial goals. SBI often provides lower interest rates and processing fees, while ICICI offers flexible loan structures for growing professionals.
By comparing both banks smartly, you can save a significant amount over your loan tenure.
If you want a hassle-free way to compare offers and secure the best deal, NoBroker is here to help. With expert guidance, zero brokerage, and complete support, getting your dream home becomes easier, faster, and more affordable.
