Calculation on Loan transfer from 10 lakh from LIC to SBI

POSTED BY ashishG ON February 11, 2014 5:17 pm COMMENTS (8)

Can any one help me to get the calculation of home loan transfer and also suggest me is it good idea to transfer home loan from LIC to SBI with below data.

Current Loan taken from : LIC housing Finance

Balance amount : 10 Lakh

LIC ROI: 11.75%

Preclosure and other chargers from LIC : 10 Thousand.

Loan transfer processing feed to SBI : 12 Thousand.

SBI ROI: 10.15%

Tenure of loan transfer I would like to take is : 5 Years



8 replies on this article “Calculation on Loan transfer from 10 lakh from LIC to SBI”

  1. ashishG says:

    thanks helps thanks ….this forum is so helpful that I did not event thought about it.
    you people are taking out time to replay and thats good sign ..thanks again to Jagoinvestor and all members..!

  2. Raja says:

    Move out of LICHFL. It is most inflexible and expensive. It is not a bank and hence have policies like forclosure charges, no ROI conversion etc. Move over to any bank but negotiate on the processing fees. Also SBI forces you to take a loan insurance too. So keep that in mind too

  3. Ashish Garg says:

    Hi Ashish,

    Just wanted to ask why LIC is charging a pre-closure fee. Now a days most financial institutions are not charging pre-closure fee even if the case is of transfer of loan. Also the processing fee for a loan is generally 0.5 to 1% of loan amount subject to a maximum of Rs.10,000. here SBI is charging Rs.12,000.

    Please see if you can negotiate and save. Don’t hesitate in negotiating with bank.

    Ashish Garg

  4. ashalanshu says:

    Dear Ashish, in that case, switch over to SBI.



  5. ashalanshu says:

    Dear Ashish, how about getting a reduced ROI by paying a conversion fee within LIC HFC itself?



    1. ashishG says:

      Tthanks Ashalanshu for reply,
      I did checked with LIC and they said they dont have any option for chaning the ROI even with payign a conversation fee.

  6. Credexpert says:

    Dear Ashish,

    Transferring home loans is suggested in case the interest rate differential is of at least 1%. In your case, the interest rate differential is of 1.60% which certainly is beneficial.

    The prepayment charges and processing fee would be a one time expense which should be borne given the interest you would save by transferring your loan to SBI.


    1. ashishG says:


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