When it comes to securing a home loan, two of the most trusted names in India are the State Bank of India (SBI) and LIC Housing Finance. Both institutions offer competitive home loan products, but they cater to slightly different customer needs. This article provides an in-depth comparison of SBI and LIC Housing Finance home loans for 2025, helping you make an informed decision.

Introduction

SBI Home Loans

SBI, India’s largest public sector bank, offers a range of home loan products tailored to meet the diverse needs of its customers. With competitive interest rates, flexible repayment options, and a robust customer support system, SBI is a popular choice for homebuyers.

LIC Housing Finance

LIC Housing Finance, a subsidiary of the Life Insurance Corporation of India, specializes in providing housing finance solutions. Known for its customer-centric approach and attractive interest rates, LIC Housing Finance is a strong contender in the home loan market.

Key Features

SBI Home Loans

• Interest Rates: Starting from 8.40% p.a.
• Loan Tenure: Up to 30 years
• Loan Amount: Up to 90% of the property value
• Processing Fee: 0.40% of the loan amount (subject to a minimum and maximum limit)
• Prepayment Charges: Nil for floating rate loans
• Special Schemes: SBI MaxGain (overdraft facility), SBI Realty (loan for plot purchase)

LIC Housing Finance

• Interest Rates: Starting from 8.50% p.a.
• Loan Tenure: Up to 30 years
• Loan Amount: Up to 90% of the property value
• Processing Fee: 0.50% of the loan amount (subject to a minimum and maximum limit)
• Prepayment Charges: Nil for floating rate loans
• Special Schemes: LIC Griha Varishtha (loan for senior citizens), LIC Griha Suvidha (loan for affordable housing)

Pros & Cons

SBI Home Loans

Pros:

• Lower interest rates compared to many competitors
• Wide range of loan products and schemes
• Extensive branch network and customer support
• No prepayment charges for floating rate loans

Cons:

• Stringent eligibility criteria
• Lengthy documentation process

LIC Housing Finance

Pros:

• Competitive interest rates
• Special schemes for senior citizens and affordable housing
• Flexible repayment options
• No prepayment charges for floating rate loans

Cons:

• Limited branch network compared to SBI
• Higher processing fees

Pricing

SBI Home Loans

• Interest Rate: 8.40% – 9.50% p.a.
• Processing Fee: 0.40% of the loan amount (min. ₹10,000, max. ₹30,000)
• EMI per Lakh: ₹760 for 20 years at 8.40% p.a.

LIC Housing Finance

• Interest Rate: 8.50% – 9.60% p.a.
• Processing Fee: 0.50% of the loan amount (min. ₹10,000, max. ₹30,000)
• EMI per Lakh: ₹765 for 20 years at 8.50% p.a.

Comparison Table

Feature	SBI Home Loans	LIC Housing Finance
Interest Rate	8.40% – 9.50% p.a.	8.50% – 9.60% p.a.
Loan Tenure	Up to 30 years	Up to 30 years
Loan Amount	Up to 90% of property	Up to 90% of property
Processing Fee	0.40% of loan amount	0.50% of loan amount
Prepayment Charges	Nil for floating rates	Nil for floating rates
Special Schemes	SBI MaxGain, SBI Realty	LIC Griha Varishtha, LIC Griha Suvidha

Expert Recommendations

For First-Time Homebuyers

SBI is recommended for first-time homebuyers due to its lower interest rates and extensive branch network, which can provide better support and guidance throughout the loan process.

For Senior Citizens

LIC Housing Finance is a better option for senior citizens, thanks to its LIC Griha Varishtha scheme, which offers tailored solutions for this demographic.

For Affordable Housing

Both SBI and LIC Housing Finance offer competitive products for affordable housing. However, LIC’s LIC Griha Suvidha scheme provides additional benefits, making it a slightly better choice.

Conclusion

Choosing between SBI and LIC Housing Finance depends on your specific needs and financial situation. SBI offers lower interest rates and a wide range of products, making it ideal for first-time homebuyers. On the other hand, LIC Housing Finance provides specialized schemes for senior citizens and affordable housing, catering to niche markets. Evaluate your requirements and choose the lender that best aligns with your homeownership goals.