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SBI 10% floating or LIC 10.5% fix – which is better
  • I am a salaried person with a good credit history and adequate CIBIL score. While searching for a home loan for I have been offered the following quotes. 

    • SBI (10% floating rate)
    • LIC (10.25% fixed rate for two years and 10.5% fixed rate for subsequent 10 years) 

    I just wanted to know which is the better offer among the two.
  • Welcome to the forum.


    I would request you to provide more information, call the loan offers you have mentioned. Understanding a loan product simply by going with the interest rate may not portray a full picture.


  • As rightly pointed out by the comment above, there may be other parameters also. For instance the tenure of the loan.

    The decision on which loan offer is better, will depend primarily upon your outlook for the future. If you think that the interest rates are going to fall in the coming years, then it will always be beneficial to go for the floating rate home loans. There is no point in pegging your interest rates to 10.5% for 10 years if you believe that the interest rates are going to come down. In that case the SBI 10% floating rate will give you a better proposition.