SBI vs LIC Home Loan: Which Saves You More Money in 2025?
Comparing SBI vs LIC Home Loan helps you choose the best option based on interest rates, repayment flexibility, and borrower benefits. Both lenders offer a variety of home loan schemes to make buying your dream home easier and more affordable. SBI stands out for its flexible repayment options and overdraft facility, while LIC Housing Finance offers slightly lower rates for borrowers with strong credit scores. Understanding these differences will help you pick the lender that best matches your financial goals in 2025.
SBI vs LIC Home Loan: Which Saves You More Money in 2025?
Smart homebuyers can save a lot by comparing LIC Home Loan vs SBI Home Loan before applying. When looking at Home Loan LIC vs SBI, LIC Housing Finance offers slightly lower interest rates starting from 7.50% p.a. to 8.50% p.a., while SBI Home Loan rates also range between 7.50% p.a. and 8.50% p.a. — even a small difference here can make a big impact over time.
The processing fees also vary: SBI charges 0.35% of the loan amount, whereas LIC HFL charges around 0.25%. Both lenders provide loans up to ₹5 crore with repayment tenures of up to 30 years. When it comes to financing, SBI funds up to 90% for loans below ₹30 lakh, while LIC HFL covers around 80% for properties worth ₹30–75 lakh.
Before choosing between Housing Loan LIC vs SBI, evaluate which option best fits your budget, property value, and long-term financial goals.
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 | |||
LIC Home Loan Interest Rate
| Rate of Interest | Max funding | ||
| Credit Score | ROI | Loan Amount | Funding % |
| >800 | 7.50% | <=30 Lakh | 90% |
| 775-779 | 7.85% | ||
| 750-774 | 7.95% | 30<75 Lakh | 80% |
| 725-749 | 8.15% | ||
| 700-724 | 8.50% | 75 Lakh> | 75% |
| -1/NTC | 8-8.5% | – | – |
| Apply Now | |||
SBI vs LIC Home Loan – A Complete Comparison
Comparing LIC vs SBI Home Loan can help you find the right fit for your financial goals. Here’s a quick look at the interest rates, charges, and features of both lenders:
| Feature | SBI Home Loan | LIC Housing Finance Home Loan |
| Interest Rate | Starts from 8.40% p.a. | Starts from 8.30% p.a. |
| Processing Fees | 0.35% of the loan amount + GST (Min ₹2,000 & Max ₹10,000 + GST) | 0.25% to 0.50% of the loan amount (Min ₹5,000 & Max ₹15,000 + GST) |
| Benchmark Rate | EBR: 8.55% | LHPLR: 16.45% |
| Loan Amount | Based on borrower eligibility | Up to 90% of property value (for loans ≤ ₹30 lakh), 80% (₹30–₹75 lakh), and 75% (above ₹75 lakh) |
| Loan Tenure | Up to 30 years | Up to 30 years |
| Lowest EMI | ₹649 per ₹1 lakh | ₹659 per ₹1 lakh |
| Eligibility | Resident Indians aged 18–70 years | Resident Indians & NRIs who are salaried, self-employed, or professionals |
| Prepayment Charges | Nil | Nil |
| Penal Interest | 2% p.a. | Up to 2% per month on defaulted instalments |
Popular Home Loan Options
SBI Home Loan Schemes:
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Regular Home Loan
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Balance Transfer Home Loan
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Flexipay Home Loan
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Privilege & Shaurya Home Loan
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Pre-approved & Bridge Home Loan
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NRI Home Loan, Top-Up, and Corporate Home Loan
LIC Housing Loan Schemes:
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LIC HFL Home Loan & Top-Up Loan
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Home Construction, Extension & Improvement Loan
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Griha Varishtha (for Pensioners)
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Griha Suvidha & NRI Home Loan
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Plot Loan & Balance Transfer under PMAY
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Advantage Plus Scheme
Which Bank Offers the Lowest Home Loan Interest Rate – SBI vs LIC Home Loan?
When comparing LIC home loan vs SBI home loan, both lenders provide attractive and affordable interest rates to help you buy your dream home. LIC Housing Finance offers rates starting from 8.30% p.a., while SBI begins at 8.40% p.a., with special interest rate concessions available for women borrowers.
Your CIBIL score plays a crucial role in determining your interest rate — especially with LIC Housing Finance. Borrowers with a CIBIL score above 700 can get rates as low as 9.00% p.a. for home loans up to ₹15 crore.
Overall, when comparing housing loan LIC vs SBI, both offer competitive terms. The final rate depends on your employment type, credit score, and loan amount, so it’s important to review both options carefully before applying.
Which Home Loan Saves You More in 2025?
A clear picture of SBI vs LIC home loan costs emerges after we look at the total expenses throughout your loan period. Let’s examine which lender will save you more money in 2025 based on actual figures.
The monthly EMI for a standard ₹50 lakh loan over 20 years with SBI ranges from ₹41,822 to ₹47,261, based on your interest rate. LIC HFL’s slightly higher rate structure results in EMIs between ₹43,391 and ₹50,761 for the same amount. This means you could save approximately ₹1,500-₹3,500 monthly with SBI.
Processing fees add to your total costs. SBI’s fees (0.35% of loan amount plus GST) cost less than LIC’s (0.25%-0.50% plus GST). This difference becomes more apparent with larger loans where LIC’s maximum fee reaches ₹15,000 compared to SBI’s ₹10,000.
Your credit profile determines which lender offers better savings. High-credit borrowers benefit more from LIC HFL’s competitive rates. Borrowers with average credit scores find SBI more cost-effective over time.
Comparing home loan LIC vs SBI, it’s clear that both lenders bring unique advantages. However, LIC HFL vs SBI home loan analysis shows that SBI edges out slightly in terms of lower EMIs and lower processing costs. When evaluating LIC vs SBI home loan, your decision should depend on your credit score and property value.
For LIC housing loan vs SBI housing loan comparisons, the choice narrows down to personal requirements and financial comfort. If you’re still wondering, “Is a LIC home loan better than SBI?”—it largely depends on your unique situation and long-term plans.”
Additional Features That Can Affect Your Savings
Besides interest rates and processing fees, several unique features of SBI vs LIC home loan products can affect your total savings greatly. These additional benefits will help you decide which is best for a home loan LIC vs SBI based on your financial needs.
| Feature | SBI | LIC HFL |
| Overdraft Option | Maxgain Home Loan (interest saved on surplus) | Not Available |
| Balance Transfer | From banks & NBFCs (with fee waivers sometimes) | Up to 30 years tenure |
| Top-Up Loan | Insta Home Top-Up Loan (quick access) | 8.50% p.a. for existing, 9.00% for new |
| Insurance | Rin Raksha life insurance linked to the loan | Optional |
| Interest Calculation | Daily reducing balance | Standard reducing balance |
Choosing the Right Home Loan for Your Needs
When it comes to SBI vs LIC home loan, the right choice depends on your financial goals and credit profile. Both lenders offer competitive home loan options, but their advantages vary depending on your needs.
LIC Housing Finance often provides slightly lower interest rates for borrowers with excellent credit scores (above 750). On the other hand, SBI is a great choice for those with average credit profiles, thanks to its flexible repayment options and reasonable processing fees.
For larger loan amounts, SBI’s capped processing fees can help you save more, while LIC Housing Finance may be better suited for smaller loans with competitive terms. SBI’s Maxgain overdraft facility helps borrowers reduce interest costs, whereas LIC offers convenient balance transfer and top-up loan options for added flexibility.
Before deciding between home loan LIC vs SBI, consider these points:
- Calculate the total loan cost over the entire tenure, not just the EMI.
- Review prepayment rules to see which lender fits your repayment plan.
- Check your credit score and how it impacts your interest rate.
- Evaluate whether you might need a balance transfer or top-up loan later.
How NoBroker Helps You Choose the Right Home Loan
Finding the best lender can be time-consuming — that’s where NoBroker Home Loan Services make things easier.
Here’s how NoBroker helps you:
- Compare multiple lenders instantly – including SBI, LIC HFL, HDFC, ICICI, and more.
- Get personalized rate offers based on your credit profile and property details.
- Quick approval process – from document collection to lender coordination.
- Free expert assistance – No hidden charges or commission.
- Negotiated lower interest rates – thanks to NoBroker’s partnerships with top banks and NBFCs.
Whether you’re applying for an SBI Home Loan or a LIC Housing Loan, NoBroker ensures a smooth, transparent, and faster loan process — helping you save time, effort, and money.
Conclusion: SBI vs LIC Home Loan – Which One Should You Choose in 2025?
When comparing SBI vs LIC Home Loan, both lenders offer strong benefits for homebuyers — affordable interest rates, long repayment tenures, and zero prepayment charges.
If you have a high credit score (above 750) and are looking for competitive rates on smaller loans, LIC Housing Finance can be a great choice. On the other hand, if you want flexible repayment options, lower EMIs, and reasonable processing fees, SBI Home Loan might help you save more in the long run.
Ultimately, the right home loan depends on your income, property value, and long-term financial plans. Comparing both lenders before applying ensures you make a decision that minimizes your total cost and fits your financial comfort.
