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IDBI Home Loan Interest Rates 2020

IDBI Bank Housing Loan Interest Rate

Last Updated 12th Aug 2020

Current IDBI Bank Home loan interest rates for Sep 2020 starts at 7.40% p.a. for a maximum tenure of 30 years. Processing fee on its housing loans is Upto 0.50%, Minimum ₹ 2,500 and .

Loan AmountIDBI Bank Repo Rate Home Loan RateHome Loan Interest Saver
Upto ₹ 35 Lakh7.40%9.30%
₹ 35 Lakh - ₹ 75 Lakh7.40%9.30%
₹ 75 Lakh - ₹ 2 Cr7.40%9.30%
Above ₹ 2 Cr7.40%9.30%

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IDBI Bank Home Loan Interest Rates

IDBI Bank offers various products on home loan. IDBI Bank home loan can be used for the purchase of a flat, home construction loan, extension or improvement loan.

Features

  • IDBI Bank Home Loan Interest Rate starts from 7.40%.
  • IDBI Bank charges a processing fees of Upto 0.50%, Minimum ₹ 2,500 and .
  • Loan Tenure of Home Loan ranges from 5 years to 30 years.
  • Lowest EMI per lakh on home Loan from IDBI Bank is ₹ 692 per lakh offered at the lowest interest rate of 7.40% at the longest loan tenure of 30 years.
  • IDBI Bank allows prepayment of home loans with Nil charges on floating rate loans.
  • IDBI Bank has an average customer rating of 4.3/5.0 from customers who have taken a home loan from the bank.

IDBI Bank Home Loan Rate

Current IDBI Bank home loan interest rates are in the range of 7.40% to 8.00%, with special discounted rates for specific categories of borrowers such as women borrowers for whom the bank offers the lowest interest rate of 7.40%. The table below gives the interest rates on various housing finance schemes of IDBI Bank.

IDBI Bank Home Loan Scheme Interest Rates
IDBI Bank Repo Rate Home Loan 7.40% - 8.00%

IDBI Bank Bank Home Loan Charges

IDBI Bank Home Loan Processing Fee

IDBI Bank home loan processing charges are upto 0.50% of the loan amount from its home loan customers to cover its expenses of conducting credit appraisal and technical evaluation of property. The bank charges a minimum processing of ₹ 2,500. The processing fees is typically non-refundable and has to be paid at the time of loan application. In addition to IDBI Bank housing loan processing fees, the bank also charges certain technical and legal charges which are explained to the customer during the loan process and are payable once the loan application proceeds further.

IDBI Bank Home Loan Prepayment

IDBI Bank charges Nil fees on prepayment of floating rate loans, as per RBI prepayment rules which prohibit banks from charging prepayment penalty on loans with floating rate of interest. Hence, it becomes extremely easy to balance transfer your loan from bank to another. If you decide to foreclose or transfer your housing loan to another bank, you need to apply for the same to IDBI Bank for a foreclosure while processing your new home loan application with the new bank. However, if you have taken a fixed rate home loan from IDBI Bank, you will need to pay a foreclosure fees to close your account or transferring it another bank as per your loan agreement with IDBI Bank.

IDBI Home Loan Documents

Documents for Salaried employees

  • Filled up loan application form
  • 2 Passport Size Photo
  • ITR of last 2 years
  • Identity Proof - Passport/ Driving Licence/ Voter ID/ PAN
  • Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), Passport
  • Income Documents – 6 months payslip, 2 years Form 16, 6 months bank statement showing salary credit and any EMI debit
  • Property Documents - Past title chain: Conveyance deed, Sales deed, Allotment letter, Possession letter, Latest property tax receipt, Copy of approved plan for construction/ extension

Documents for Self-Employed

  • Filled up loan application form
  • 2 Passport Size Photo
  • Identity Proof - Passport/ Driving License/ Voter ID/ PAN
  • Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), Passport
  • Business proof such as VAT/ service tax registration, incorporation details in case of companies, business address proof, profit and loss account and balance sheets certified by CA, copy of partnership deed and proof of business existence and business profile
  • Property Documents - Past title chain: Conveyance deed, Sales deed, Allotment letter, Possession letter, Latest property tax receipt, Copy of approved plan for construction/ extension

IDBI Bank Pradhan Mantri Awas Yojana

The government of India has launched many affordable housing loan schemes to facilitate availing home loan at concessional rates to lower and middle-income groups. Some of the popular schemes are:

a) PMAY or Home Loan Subsidy Scheme: Launched in 2015 to provide houses to the homeless. You can apply for PMAY at IDBI Bank if you fulfil the eligibility criteria. Know more about PMAY Scheme

b) Pradhan Mantri Gramin Awas Yojana:  It focuses on homeless families and offers pucca houses with basic amenities.

c) DDA Housing Scheme: It aims to provide houses to low, middle, and high-income groups.

d) Tamil Nadu Housing Board Scheme: It started in 1961 to provide houses to varied income groups.

e) Mhada Lottery Scheme: It's a lottery scheme launched every year for buyers of varied income groups.

f) Rajiv Awas Yojana: Launched in 2009 with the aim of bringing illegal construction under the formal system and encouraging slum-free India.

Each of these schemes has its conditions with respect to eligibility, the amount of loan that can be borrowed, and the rate of interest.

Illustration on IDBI Bank Home Loan Interest Rate
Maximum Annual Percentage Rate (APR)7.4% to 8%
Representative example of the total cost of the loan, including all applicable fees
Here is an illustration of the total cost of the loan:
  • Total amount borrowed: ₹ 1 Lakh
  • Time period: 5 years to 30 years
  • IDBI Bank Home Loan Interest Rate: 7.40% to 8.00%
  • Processing Fee payable to IDBI Bank: Upto ₹ 10,000. Current offer for processing fee is Upto 0.50%
  • Fee payable to MyLoanCare: NIL
  • Total Monthly Cost – From ₹ 692 for a 30 years ₹ 1 Lakh loan at 7.40% (lowest rate, longest time period) to ₹ 2,028 for a 5 years ₹ 1 Lakh loan at 8.00% (highest rate, shortest time period). This is inclusive of principal repayment.
  • Total cost payable over loan tenure: ₹ 31,658 for 5 years loan to ₹ 1.59 Lakh for 30 years loan

IDBI Bank’s terms and conditions as per loan agreement applicable. Short term loans/ pay day loans not available; minimum loan tenure: 5 years. Rate of interest depends upon income, job stability, loan amount, CIBIL score, credit profile, existing obligations, verification and other factors. Credit at sole discretion of IDBI Bank.

FAQs

What is IDBI Home Loan interest rate?

IDBI Home Loan interest rate ranges between 7.40% to 8.00%.

Why should I opt for balance transfer to IDBI Bank?

IDBI Bank offers competitive Home Loan rates with the best EMI of ₹ 692 per lakh availed at a low-interest rate of 7.40% for a maximum tenure of 30 years. If you are paying an EMI more than ₹ 692 per lakh, you should consider the option for a loan transfer to IDBI Bank from your existing bank. EMIs can be calculated through IDBI Bank Home Loan EMI calculators.

Do I get tax benefits on a Home Loan from IDBI Bank?

As per the Indian Income Tax Act of 1961, residents of India are eligible for tax benefits on the principal amount and interest components of a house finance under section 24 and section 80C of Income Tax Act.

What is the effect of part prepayments on IDBI Bank housing finance EMI ?

Part prepayments help you in reducing the outstanding amount of loan, which in turn will reduce the interest amount due. After making part payments, paying the same Home Loan EMI will increase your involvement towards the principal amount, which will help you in repaying the loan faster.

How to increase my eligibility on IDBI Bank housing loan?

If your spouse or family member is earning well, you can make your spouse or family member the co-applicant for your loan. The combination of both of your income will help you in increasing your eligibility to get a loan.

How will IDBI Bank housing loan rate of interest change in the future?

  • IDBI Bank offers RBI Repo Rate linked Home Loan which starts at 7.40%. Current Repo Rate of RBI is 4.00%. Bank adds a mark up on RBI’s repo rate which is called IDBI Bank Repo Rate Linked Lending Rate (RLLR). RLLR can change with change in Repo Rate. An additional spread is applied on RLLR which remains the same throughout the tenure. Bank applies a premium of 3.4% to the Repo Rate to arrive at this rate.
  • When RBI increases rates, the bank may increase its Repo Rate linked Home Loan rates by the same basis points for all existing and new Home Loans. When RBI cuts interest rates, the IDBI Home Loan interest rates will reduce the interest rates by the same basis points, which will be effective from 1st day of the following month.
  • For instance, if RBI slashes Repo Rate by 0.15%, then IDBI Bank Repo Rate linked Home Loan rate will cut from 7.40% to 7.25%.

What is the current IDBI Bank Home Loan rate?

The current IDBI Home Loan rate starts from 7.40% with a processing fee of Upto 0.50%, Minimum ₹ 2,500 and

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IDBI Bank Home Loan News - Sep 2020
  • 2020-07-28 : IDBI Bank reported Q1 net profit of ₹144 crore
    IDBI Bank reported Rs 144 crore net profit for June quarter on account of a reversal of Rs 1335 crore of bad loan provisioning. It is IDBI second successive net profit after 13 consecutive quarters of loss. CASA increased to ₹ 1,04,315 crore and cost of deposit which includes fixed and recurring deposits improved by 64 bps to 4.65%. In addition to this, NII bolstered by home, personal, gold, car and two-wheeler loan along with business and mudra loans stood at ₹ 1,773 crores.
  • 2020-02-17 : LIC Housing Finance likely to merge with IDBI Bank
    LIC is expected to expedite the merger of its Housing finance arm, LIC Housing Finance with IDBI Bank. This move will help both lenders target more customers as one single entity under the lending platform for home loans. Further, the merger will help customers to get home loans at affordable interest rates
  • 2019-07-22 : IDBI Bank announces a tie-up with New India Assurance Company Limited
    IDBI Bank has entered into a Bancassurance Corporate Agency agreement with the New India Assurance Company Limited. The association with the insurance company has been done to offer various insurance products to its customer base. The lender is also eyeing growth across its retail loan segments including home loans, personal loans, and fixed deposits.
  • 2019-06-20 : IDBI Bank ties up with Tata AIG for bancassurance
    Private sector lender, IDBI Bank has entered into an bancassurance agreement with Tata AIG. The partnership between them aims at offering insurance products to the bank customers which will further strenghten its presence across the masses. In addition, the bank is also aiming to significantly achieve growth across its retail loans segment including mortgage loans and home loans.
  • 2019-06-13 : IDBI Bank loans to get cheaper, lender slashes its MCLR rates by 5-10 bps across various tenors
    The loans offered by IDBI Bank will get cheaper now as the lender has reduced its Marginal Cost of Funds Based Lending Rate (MCLR) by 5 to 10 basis points across various tenors with immediate effect. The lender has reduced the one-year MCLR to 8.95%. While for two-year and three-year MCLR, the rate stands at 9.15% and 9.20%.
*Terms and conditions apply. Credit at sole discretion of lender subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and from collected from public sources. Read More
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