SBI Home Loan Vs LIC Housing Finance
The decision to choose a home loan is a pivotal that involves proper evaluation of available home loans. On this page, you will find an elaborate comparison of home loans provided by the State Bank of India (SBI) versus Life Insurance Corporation (LIC) Housing Finance. Using this comprehensive guide, you can easily decide which is the best home loan for you. Both the institutions offer a dynamic range of products that cater to various requirements.
Compare SBI Home Loan Vs LIC Housing Finance Home Loan
The interest rate, charges, and other features of SBI vs LIC HFL home loans are given below:
Compare | ||
Interest Rate | 7.25% p.a. onwards | 7.15% p.a. onwards |
Processing Fees | 0.35% of loan amount + GST Minimum: Rs.2,000 + GST Maximum: Rs.10,000 + GST | 0.25% to 0.50% of loan amount subject to Rs.5,000 minimum and Rs.15,000 maximum + GST |
MCLR (1 year) | 8.70% | |
Retail Lending Rate | EBR: 7.90% | LHPLR: 16.90% |
Loan Amount | Contact the bank | Contact the Institution |
Loan Tenure | 30 years | 30 years |
Eligibility | Resident Indian Between 18 to 70 years of age | Resident Indians and NRIs Salaried, self-employed, or professionals |
Prepayment Charges | Nil | Nil |
Penal Interest Rates | 2% p.a. | Up to 2% p.m. on defaulted instalment |
Which Bank Offers the Lowest Home Loan Interest Rate - SBI Vs LIC Housing Finance?
Both SBI and LIC HFL provide affordable interest rates to prospective home owners, with LIC HFL's interest rate starting at 8.30% p.a. but SBI providing an interest rate concession to women borrowers, thus starting the interest rates at 8.40% p.a.
The CIBIL Score plays an important role in the interest rates offered by LIC Housing Finance. Salaried, non-salaried, professional, and non-professional individuals with CIBIL scores above 700 get an interest rate of 9.00% p.a. for home loans of up to Rs.15 crore. The interest rates vary according to employment type, CIBIL scores, and quantum of loan.
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Popular Home Loan Products offered by SBI
- SBI Regular Home Loan
- SBI Balance Transfer Home Loan
- SBI Flexipay Home Loan
- SBI Privilege Home Loan
- SBI Shaurya Home Loan
- SBI Pre-approved Home Loan
- SBI Bridge Home Loan
- SBI Home Top Up Loan
- SBI Smart Home Top Up Loan
- SBI YONO Insta Home Top Up Loan
- SBI Corporate Home Loan
- SBI Home Loan to Non-Salaried
- SBI Tribal Plus
- SBI NRI Home Loan
Popular Home Loan Products offered by LIC HFL
- LIC HFL Home Loan
- LIC HFL Home Construction Loan
- LIC HFL Home Extension Loann
- LIC HFL Home Improvement Loan
- LIC HFL Top Up Home Loan
- LIC HFL Home Loan Balance Transfer
- LIC HFL Griha Varishtha Home Loan for Pensioner
- LIC HFL Griha Suvidha
- LIC HFL Home Loan for NRI
- LIC HFL Plot Loan
- Pradhan Mantri Awas Yojana
- LIC HFL Advantage Plus
Factors to Consider when Choosing Home Loan
Some of the factors to consider when choosing a home loan are as follows:
- Interest Rate Benchmarks: Interest rates at SBI are linked to an external benchmark rate, whereas the internal Prime Lending Rate is utilized by LIC Housing Finance. Absolute transparency is provided by repo-linked bank rates.
- Specialised Loan Product Offerings: SBI provides specialized products like the Shaurya Home Loan, while Griha Suvidha schemes are offered by LIC Housing Finance.
- Processing Fees and Other Charges: A standardized processing fee with explicit maximum caps is charged by SBI. LIC Housing Finance applies a broader percentage-based fee structure.
- Balance Transfer and Top-Up Flexibility: Balance transfer facilities are actively promoted by both institutions, but higher loan eligibility with step-up moratoriums is facilitated by SBI's Flexipay.
- Accessibility and Digital Integration: Digital loan applications are processed through integrated platforms like YONO by SBI, while dedicated customer portals and affordability calculators are managed directly by LIC Housing Finance. Extensive physical branch networks are maintained by both the nationalized banks across various cities of India.
FAQs
- Which institution offers a more cost-effective interest rate for home loans?
LIC Housing Finance occasionally offers lower initial interest rates to borrowers possessing exceptionally high CIBIL scores (e.g., 825 and above). Conversely, a highly transparent, repo-linked interest rate is provided by SBI, which includes a standard 0.05% concession specifically for women borrowers.
- Are prepayment penalties charged if the loan is closed before the tenure ends?
Prepayment penalties are strictly not levied by either SBI or LIC Housing Finance on floating-rate home loans, as mandated by regulatory guidelines.
- How is the home loan interest rate impacted by the applicant's CIBIL score at these institutions?
A strong CIBIL score is required by both lenders to secure the lowest available interest tiers, but the specific score thresholds are categorized differently. The absolute lowest interest rates are typically offered by LIC Housing Finance to borrowers possessing exceptional credit scores (often 750 to 800 and above).
- Will I be charged a penalty in case I fail to pay my EMI installment for SBI home loan?
Yes, you will be charged a penalty of 2% p.a. in case you fail to pay your EMI installment for SBI home loan of above Rs.25,000.
- How much is the maximum allowed tenure for SBI home loan?
The maximum allowed tenure for SBI home loan is 30 years.
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