Buying a home is a major financial decision, and choosing the right home loan can make a significant difference in your long-term savings. With attractive interest rates, special concessions, and flexible loan options, SBI and ICICI Bank are two of the top choices for home buyers in India.
Both banks offer competitive interest rates, exclusive benefits for salaried individuals and women borrowers, and digital loan processing. However, the right choice depends on factors like loan amount, processing fees, repayment flexibility, and interest rate variations based on CIBIL scores.
In this blog, we compare SBI and ICICI home loans in terms of interest rates, eligibility, loan processing, and unique benefits to help you decide which bank is the best fit for your dream home. Let’s dive into the details
Table of Contents
Here’s a detailed comparison table for SBI vs ICICI Home Loans:
| Feature | SBI Home Loan | ICICI Bank Home Loan |
| Loan Amount | Up to 15 crore | Up to ₹5 crore (higher amounts via offline mode) |
| Loan Tenure | 1 to 30 years | 1 to 30 years |
| Interest Rates | Based on CIBIL Score: – 825+ → 8.50% – 750-824 → 8.55% – 700-749 → 8.65% – Min: 8.45% | – Salaried: Starting 8.75% – ₹35L loan: 9.25% – Self-Employed: Starting 9.40% |
| Processing Fees | Waived (savings of ₹22,000 on ₹1 Cr loan) | Up to 0.50% of the loan amount |
| Special Discounts | – Women & Defense Personnel: 0.05% discount – Salary-Based Discounts: – ₹50K+ salary (Diamond) → 0.05% off – ₹1L+ salary (Platinum) → 0.10% off – ₹5L+ salary (Rhodium) → 0.15% off | None |
| Loan Eligibility | – Min CIBIL: 550 – New-to-credit customers eligible | – Salaried: Min ₹25,000/month – Self-Employed: Min ₹50,000/month – Age: 21-70 years |
| Loan-to-Value (LTV) | 30 lakh and up to Rs 75 lakh: The LTV ratio is up to 80% Above Rs 75 lakh: The LTV ratio is up to 75% | – Up to 90% (for property < ₹30L) – Up to 80% (for property > ₹30L) |
| Loan Against Property | Interest Rate: 10%-11.30% (for personal expenses, not business use) | 9.50% to 12.2% |
| Foreclosure Charges | 3% on the outstanding balance | 2.5% of the outstanding principal |
| EMI Example | A 1% rate change increases interest by ₹1-1.5L over loan tenure | ₹20L loan for 20 years at 9% → ₹18,976 EMI (Total interest: ₹4.52L) |
| Approval & Processing | – Approval before or after property selection – Takes 7-10 days – Valid for 6 months | – Approval before or after property selection – Processing: 7-10 days |
| Types of Loans | – Home Loan – Loan Against Property (P-LAP) – Home Loan Top-Up – Earnest Money Deposit Loan – Reverse Mortgage Loan | – New Home Loan – Balance Transfer Loan – Money Saver Home Loan – Express Home Loan – Land Loan – NRI Home Loan |
| Application Process | – Online & Offline – Digital options via YONO app | – Online & Offline – Instant pre-approved loans available |
| Other Features | – Zero processing fee for home loans – 50% discount on LAP processing fee – Reverse Mortgage Loan (11.55%) for senior citizens | – Fixed and Floating Rate options – High-limit pre-approved home loans available |
Apart from this there is a comparison of HDFC bank home loan vs SBI bank Home loan.
ICICI Bank Home Loan: Interest Rates, Eligibility, and Features
Loan Amount and Duration
- ICICI offers home loans up to ₹5 crore online; for higher amounts, offline application is required.
- Loan tenure ranges from 1 to 30 years.
Interest Rates
- Rates start from 8.75%.
- For salaried individuals:
- Loans up to ₹35 lakh: 9.25%
- For self-employed individuals:
- Rates start at 9.40%.
- Offers both fixed and floating rate options.
- The interest rate remains constant after approval.
Loan Eligibility Criteria
- Salaried individuals: Minimum monthly salary of ₹25,000.
- Self-employed individuals: Minimum monthly income of ₹50,000.
- Age limit: 21 to 70 years.
- Loan covers:
- Up to 90% of property value (if below ₹30 lakh).
- Up to 80% of property value (if above ₹30 lakh).
- Loans are applicable only for properties within municipal corporation areas.
EMI Calculation
- Example: A ₹20 lakh loan over 20 years at 9% interest results in an EMI of ₹18,976.
- Total interest payable: ₹4.52 lakh.
Processing Fees and Other Charges
- Processing fee: Up to 0.50% of the loan amount.
- Pre-approved loans: Fixed processing fee of ₹999.
- Additional administrative and part-payment charges may apply for fixed-rate loans.
Documents Required
- Salaried individuals: ID proof, address proof, salary slips, and property-related documents.
- Self-employed individuals: Additional documents like income tax returns, GST returns.
- Pre-approved home loans: No income proof required.
Types of Home Loans Offered
- New Home Loan
- Balance Transfer Loan
- Money Saver Home Loan
- Express Home Loan
- Land Loan
- NRI Home Loan
Application Process
- Apply online by selecting the loan amount and tenure.
- Submit personal details and documents.
- Once verified and approved, the loan amount is disbursed:
- For home construction: Amount credited to borrower’s account.
- For ready properties: Amount paid directly to the seller.
Approval & Processing Time
- Approval time: Loan can be approved before or after finalizing a property.
- Offer validity: 6 months after approval.
- Processing time: Typically 7–10 days.
Foreclosure & Prepayment
- No foreclosure charges for both fixed and floating rate loans.
- Borrowers can repay early without additional costs after a specified period.
Exclusive ICICI Bank Benefits
- High-limit pre-approved home loans.
- Competitive interest rates compared to other banks.
- Fast and hassle-free online application process.
For more details and to apply, visit the ICICI Bank official website.
SBI Home Loan Interest Rate and Discounts
- Zero Processing Fee: SBI has waived the 0.35% processing fee for home loans, saving up to ₹22,000 on a ₹1 crore loan.
- Loan Against Property Discount: Processing fees reduced by 50%.
- Interest Rate Based on CIBIL Score:
- 825+ → 8.50%
- 750-824 → 8.55%
- 700-749 → 8.65% (Lower scores may have higher rates)
- Special Concessions:
- Women borrowers & defense personnel get a 0.05% discount.
- Min Interest Rate: 8.45% | Max Interest Rate: 9.45%.
- Impact of Interest Rates: A 1% rate difference can cost ₹1-1.5 lakh extra in total interest.
SBI Home Loan Sanction Process (10-Step Guide)
- Initial Scrutiny: SBI checks for missing documents & informs the applicant.
- Document Verification: Submission of ID, income, & property proof → Loan application number generated.
- In-Principle Sanction: Initial loan approval letter issued with tenure & interest rate.
- Final Interest Rate Calculation: Based on CIBIL score, discounts applied manually.
- Property Verification: Valuation, seller identity check, & site inspection.
- Legal Due Diligence: Lawyer reviews original property documents (₹1 Cr+ loans require dual verification).
- Borrower Verification: Checks on residence, employment, and financial details.
- Work-from-Home Cases: HR confirmation needed for remote employees.
- Final Loan Sanction: Subject to all verifications; delays can occur if documents are pending.
- Remote Seller Process: Certified copies of property documents accepted (originals required before registration).
Key Home Loan Features for 2025
- Women Borrowers’ Discount: 0.05% lower interest rates.
- Salary-Based Discounts:
- Govt & Defense (Privilege/Shaurya Packages): 0.05% discount.
- High-Salary Borrowers:
- ₹50K+ (Diamond) → 0.05% off
- ₹1L+ (Platinum) → 0.10% off
- ₹5L+ (Rhodium) → 0.15% off
- Minimum CIBIL Score: 550 (New-to-credit customers eligible at higher rates).
- Home Loan Top-Up: Interest rates 8.80%-11.30%, based on amount & credit score.
- Loan Against Property (P-LAP): 10%-11.30% (for education, marriage, or healthcare, not business).
- Earnest Money Deposit Loan: 8.80%-9.75% for property booking.
- Senior Citizens’ Reverse Mortgage: 11.55% interest rate.
- Digital Loan Options (YONO): 9.35% for online top-up loans.
Final Verdict: SBI vs. ICICI Home Loans – Which One Wins?
Both SBI and ICICI Bank offer competitive home loan options, but the better choice depends on your financial profile and specific needs.
✅ Choose SBI Home Loan If:
- You want the lowest interest rates (starting at 8.45%) and zero processing fees.
- You are a woman borrower, defense personnel, or a high-salary employee—you can get additional interest rate discounts.
- You prefer government-backed security and extensive branch support for documentation.
✅ Choose ICICI Home Loan If:
- You are looking for a quick and seamless online loan approval process with minimal paperwork.
- You prefer fixed and floating interest rate options for flexibility in repayment.
- You want higher loan amounts (up to ₹5 crore online) and balance transfer facilities with competitive rates.
Final Thought:
- SBI offers more affordability with lower interest rates, waived processing fees, and discounts for specific borrowers.
- ICICI provides a hassle-free digital process and is ideal for those seeking higher loan amounts with a faster approval experience.
If you prioritize cost savings and are eligible for SBI’s discounts, SBI is the better choice. However, if you value convenience, quick processing, and flexibility, ICICI Bank is worth considering.