IDBI - Home Loan Interest Rates & Eligibility

Rs. 20 Lakh - 1 Crore

9.75%

Floating rate
For salaried and self employed

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overview-icon   Overview

IDBI is a public sector bank ranking 10th in the world in terms of reach. It has 3000 ATMs, 1746 branches, including one branch at Dubai and 66 dedicated Loan Processing Retail Asset Centers. It has 1285 centers, including two overseas centers at Singapore & Beijing. IDBI Bank is on par with PSU banks as far as government ownership is concerned. It is one among the 27 commercial banks owned by the Government of India.

IDBI essentially has only one home loan type with varying interest rates and documentation for salaried, self-employed and NRI and applicants. It also varies for presently working employees and senior citizen retired applicants.

Interest rates vary from time to time as per bank policy and eligibility for the loan depends on your credibility.

Advantages of borrowing from IDBI Bank:
IDBI being a government owned bank lends loans at affordable interest rates and specifically designed schemes catering to the various classes making repayment easier.
Other Advantages include:

  • Assistance in property search and list of approved projects for convenience of Home Loan buyers
  • Pre-approval of loan even before property is selected on the basis of credibility of customer. This helps the customer boldly negotiate with builder for cost of property.
  • Customized Home Loan and repayment options for Salaried (Including NRI), Self Employed Professionals and Self Employed Non Professionals.
  • You can avail a Loan from any branch to purchase property in any state in India.
  • Online application facility.

   Key Features


Even though IDBI has only one home loan, they have additional repayment options depending on remaining years of service or working and the type of property:

Step up Repayment Facility:
This option is essentially for newly qualified professionals who have long years of working before them. IDBI HFL will grant them bigger loans today on the basis of their predicted future income since their repayment capacity is higher and for longer periods. The income growth over the years is expected to be 6-8% per annum and the tenure of loan repayment could be 5 years for a loan of 20 years. (The same will be slab of 5 years for a loan of 20 years.)

Step Down Repayment Facility:
This option is thoughtfully created for people whose income is going to reduce after a certain period during the loan maturity. The main purpose of this facility is to pay back maximum amount while still salaried. This way you can enjoy a happy retirement by paying back while you are earning.
This means you pay 2 EMIs of different amounts for 2 different periods. The first amount exceeding the latter. This option also lets you combine you and your children’s income together to take a bigger loan. Once you retire, your kids could take over the repayment of the remaining amount of the loan.

Tranche Based EMI:
This option is for customers purchasing an under construction property. The advantage is that you only have to pay the interest component for the disbursement amount based on level of construction till the property is ready for possession.
However, you are also allowed to start paying the EMIs when the property is just at construction stage and is not even ready. /p>

   Eligibility

Type:

Salaried

Self employed

Professionals*

Self employed

Non-professionals*

Minimum age at time of taking the loan

22 years

25 years

25 years

Maximum age for termination

of loan

70 years

70 years

65 years

*Self Employed Professionals include doctors, engineers, dentists, architects, chartered accountants, management consultant, company secretary
*Self Employed Non Professionals include Businessmen. Maximum age under this category may be relaxed subjected to availability of proper succession plan of the business.

   Processing Fees

IDBI bank charges a processing fees of 1% of the home loan amount you have applied for.

   Document Required

Salaried Customers

  • Completed Application form
  • Photograph attached to application form
  • Proof of Identity
  • Proof of Residence
  • Proof of business existence
  • Business profile
  • Last 3 years Income Tax returns
  • Last 3 years Profit /Loss Balance
  • Last 6 months bank statements (self and business)
  • Cheque for Processing fee
  • Property papers

Self Employed Professionals

  • Completed Application form
  • Photograph attached to application form
  • Proof of Identity
  • Proof of Residence
  • Education Qualifications Certificate
  • Proof of business existence
  • Bank statement for Last 6 months
  • Last 3 years Income Tax returns (self and business)
  • Last 3 years Profit /Loss and Balance Sheet
  • Cheque for the processing fee
  • Property papers

Self Employed Non Professionals

  • Completed Application form
  • Photograph attached to application form
  • Proof of Identity
  • Proof of Residence
  • Education Qualifications Certificate
  • Proof of business existence
  • Bank statement for Last 6 months
  • Last 3 years Income Tax returns (self and business)
  • Last 3 years Profit /Loss and Balance Sheet
  • Cheque for the processing fee
  • Property papers

Link: http://www.idbi.com/home-loan.asp