IDBI Home Loan Interest Rate

Last Updated 21st Feb 2018

IDBI Bank Home Loan Rate Feb 2018

IDBI Bank's home loan interest rate starts from 8.35%, which is one of the best home loan rates in India. The rates vary by loan amount, occupation, income and type of loan availed. Check Best Offers

Loan AmountIDBI Bank Home Loan Floating Interest RateRate for Female BorrowerHome Loan Interest Saver
Upto Rs. 25 Lakh8.40%8.35%9.00%
Rs. 25 Lakh - 75 Lakh8.55%8.50%9.00%
Rs. 75 Lakh - 2 Cr8.65%8.60%9.00%
Above Rs. 2 Cr8.65%8.60%9.00%

PAN India branch network

Apply Home Loan @ 8.30%*

IDBI Bank Home Loan

IDBI Bank offers housing loan to people who want money to purchase a house, home renovation and home extension etc. The house itself acts as a security to the loan. Taking a loan from IDBI Bank has the following benefits:

  • PAN India branch network
  • Nil prepayment charges for floating rate home loans
  • Assistance to help you in property search
  • Various easy and flexible repayment option available
IDBI Home Loan Details
Interest Rate8.35% onwards
Processing Fee Upto 0.50%
Minimum Rs. 2,500
Max Tenure30 years
Lowest EMIRs. 758 per lakh
Prepayment ChargesAllowed with Nil charges for floating rate loans
AgeMin 22 and Max 70 years for Salaried
Min 25 and Max 70 years for Self Employed

Home Loan Interest Rates IDBI Bank

IDBI Bank home loan interest rates are in the range of 8.35% to 8.65%, with special discounted rates for specific category of borrowers such as ladies borrowers for whom the bank offers the lowest interest rate of 8.35%.

IDBI Bank Home Loan Interest Rates

Home Loan IDBI Bank Interest Rates
IDBI Bank Home Loan Floating8.35% - 8.65%

IDBI Home Loan Interest Rate Cut

After the recent home loan rate change, new IDBI Bank home loan rate is in the range of 8.35% to 8.65% as announced after a change in 6 Month MCLR rates as announce on 12th Feb 18. Any change in IDBI Bank benchmark 6 Month MCLR rate will translate into a similar change in the bank’s home loan rate. For instance, if IDBI Bank 6 Month MCLR rate is cut by 0.15%, its current home loan rate will cut from 8.35% to 8.2%

IDBI Bank home loan interest depends upon
  • Loan amount: Housing loan rate in IDBI Bank depends upon the loan amount you apply for. Higher the loan amount, lesser will be the rate
  • Your Salary: Income helps you in identifying your rate of interest. Bank's rate varies with your monthly income. Higher the income, lesser will be the rate
  • Type of loan opted for: IDBI Bank also offers differential rates for women borrowers and also under their fixed and floating rate schemes. The rate of interest may be higher or lower under their special or popular loan product offers.
  • Existing bank customers: IDBI Bank offers one of the lowest home loan rates to its existing bank account customers in view of their past relationship with the bank.

IDBI Bank Home Loan Charges

In addition to interest rates, home loan from IDBI Bank also carry some other charges which include:

  • Processing Fee - IDBI Bank charges 0.50% processing fees to account for its expenses incurred for conducting a credit appraisal and completing the lending process.
  • Technical and Legal Charges - IDBI Bank also charges technical and legal charges which are explained to the customer during the loan process. Once you go through the loan application process, you will need to pay these charges based on IDBI Bank rules.
  • Prepayment Charges: If you decide to foreclose or transfer your housing loan to another bank, you need to submit an application for the same to IDBI Bank. As per RBI rules, banks are not allowed to charge prepayment penalty on floating rate home loans. Hence, you can prepay your home loan with IDBI Bank at Nil charges.

IDBI Housing Loan Details

  • Purpose of Loan: IDBI house loan is taken to purchase, construct a home, renovate your existing home.
  • Key Features
    • Loan available for both salaried and self employed. Special rates for women borrowers.
    • Borrowers within the age group of 22 and 70 years.
    • Security: Mortgage of property you are planning to purchase, renovate or construct.
    • Loan to Value Ratio of 90%.
    • Loan Tenure can range from 5 to 30 years.
    • Interest rates in the range of 8.35% to 8.65%.
    • Lowest EMI of Rs. 758 per lakh
  • Processing Fees: 0.50% of loan amount Minimum Rs. 2,500
  • Special schemes: IDBI offers customised home loan interest rates and schemes for special category of borrowers including women borrowers, senior citizens, NRIs etc. Some of the special loan offers of IDBI are:
    • IDBI Bank Home Loan
    • IDBI Home Loan Interest Saver
    • Home Renovation Loan
Illustration on Home Loan IDBI Bank
Maximum Annual Percentage Rate (APR)8.35% to 8.65%
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: Rs. 1 Lakh
  • Time period: 5 years to 30 years
  • IDBI Bank Home Loan Interest Rate: 8.35% to 8.65%
  • Processing Fee payable to IDBI Bank: Upto Rs. 10,000. Current offer for processing fee is Upto 0.50%
    Minimum Rs. 2,500
  • Fee payable to MyLoanCare: NIL
  • Total Monthly Cost – From Rs. 758 for a 30 years Rs. 1 Lakh loan at 8.35% (lowest rate, longest time period) to Rs. 2,059 for a 5 years Rs. 1 Lakh loan at 8.65% (highest rate, shortest time period). This is inclusive of principal repayment.
  • Annual Percentage Rate (APR) of charge including all applicable fees: 8.35% to 8.65%
  • Total cost payable over loan tenure: Rs. 33,533 for 5 years loan to Rs. 1.83 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.

Frequently Asked Questions

What is IDBI Bank home loan procedure?

You can apply for a IDBI Bank home loan by contacting the bank directly or by applying through online marketplaces like Availing a loan through an online market place improves the chances of getting best loan rates, low processing fees and special offers in the form of cash backs. Once you approach the bank, they will collect your documents and initiate the loan process which includes checking your CIBIL score, property valuation, technical and legal checks on property, eligibility calculation. The bank will give a decision on your loan based on the evaluation results.

Why should I opt for balance transfer to IDBI Bank?

IDBI Bank offers competitive home loan rates which best EMI of Rs. 758 per lakh availed at low interest rate of 8.35% for a maximum tenure of 30 years. If you are paying an EMI more than Rs. 758 per lakh, you should consider option for a loan transfer to IDBI Bank from your existing bank.

What is the maximum loan tenure I can opt under IDBI Bank house loan?

IDBI Bank offers you a longer tenure of 30 years to repay your loan with a benefit of paying less EMI per month.

Do I get tax benefit on home loan from IDBI Bank?

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

Can I foreclosure my home loan? What are the charges applicable?

Yes, you can foreclose your loan with Nil charges.

Can I transfer my house loan from another bank to IDBI Bank?

Yes, Bank gives you the facility to transfer your existing loan with a hassle free process. Availing loan transfer to IDBI Bank can allow you to save interest, pay lower EMIs and save money.

Can I club the income of my spouse with mine and apply for joint home loan?

You can club the income of your spouse to increase your loan eligibility if the spouse is co-owner of the property or guarantor of the loan.

What is the benchmark applicable for housing loan?

The benchmark applicable for home loan in IDBI Bank is 6 Month MCLR.

What is the effect of part prepayments on IDBI Bank housing loan 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 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 loan.

How will interest rate on IDBI Bank housing loan change in future?
  • Floating rate on IDBI Bank housing loan is linked to its 6 Month MCLR Rate, which is currently at 8.35%. When Bank offers a home loan at 8.35%, it applies a premium of 0% to its MCLR Rate to arrive at this home loan rate.
  • When RBI increases rates, the bank may increase its MCLR rate and the applicable interest rate for all existing and new home loans would increase. When RBI cuts interest rates and the bank reduces the MCLR rate, the benefit of lower rates will have to be passed to both old borrowers and new house loan accounts.
IDBI Home Loan News - Feb 2018
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