Transfer of Loan from LIC to SBI in future ?

POSTED BY abhi_96 ON November 13, 2013 2:02 pm COMMENTS (2)

Hello,

I have applied for SBI home loan for 36 lac..They offer @10.5 floating . And LIC 10.10 lac for first two yrs..I guess after 2 yrs they will rise too much.. So which option is good…

Or Is it good choice to take LIC for 2 yrs and then transfer to SBI??

How much charge I have to pay to both LIC and SBI ??

2 replies on this article “Transfer of Loan from LIC to SBI in future ?”

  1. ashalanshu says:

    Dear Abhi, the saving made by you with 0.4% interest rate difference ‘ll be eaten up in various fee at the time of switching from LIC to SBI 2Y down the line. I w’d prefer SBI over LIC. The biggest catch in LIC scheme, you w’d have to pay preclosure charges as your loan is not an outright floating loan. due to this 2Y fixed rate option, you lose the zero prepayement penalty benefit. Now you know why SBI is good in your own interest.

    Thanks

    Ashal

  2. Sumit says:

    What LIC is offering is something called fixed plus floating (or there could be some other name like Bhagyalaxmi Plus scheme etc etc) – where the rate will be fixed for first 2 years and then floating rate thereafter (rate will be raised if the base rate increases and vice-versa). So as far as I can’t see any problem with taking loan from LIC Housing, but please know details and other facts before proceeding.

    Thanks
    Sumit

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