IDBI Bank Home Loan

Having your own home is the most significant achievement in life, and IDBI Bank gives a home loan solution to assist you in accomplishing your dreams of purchasing or constructing a house. The home loan solutions of IDBI are customized to your requirements and are based on the following traits:

• Expertise and in-depth knowledge of the financing industry

• Service quality

• Transparency

• Fast processing

IDBI Bank Home Loan: Features and Benefits

• Assistance in property search and due diligence of property for acquisition.

• Customized Home Loan Features for Salaried (Including NRI), Self Employed Professional and Self Employed Non-Professional (Business Category).

• Already approved projects for convenience of Home Loan buyers.

• Flexible Loan Repayment Option viz. Flexible Loan Installment Plan, Step up & Step down repayment facility, Tranche Based EMI.

• Extensive presence across India with 1800+ Branches and 76 dedicated Loan Processing Centers.

• The loan from anywhere to purchase a home anywhere in India.

• Most experienced personnel for smooth and secure loan processing.

• Online application facility.

Home Loan Process

You can choose any of the mentioned ways to apply for IDBI Home Loan Solution:

• Online 

• Offline

Apply for IDBI Home Loan Online

Availing a home loan online improves the chances of getting the best interest rates, low processing fees, and special discounts in the form of cashbacks. 

Here are the steps to apply online:

• Visit the IDBI portal

• Under 'Apply Online,' click on 'Home Loan.'

• A new loan application screen will appear where you need to tell if you are an existing account holder with IDBI or not.

• If you are an existing IDBI account holder, select 'yes' and enter your customer id. The bank will send an OTP to your registered mobile number.

• Enter the OTP details to verify. The bank people will contact on your number.

• If you don't have an account with IDBI, select 'no.' A loan application form will be opened. Fill the form with the necessary details and submit. Select your preferred branch location through which you want to start the loan process.

• Attach the required documents such as an address proof, income proof, and identity proof with the form and submit it.

• The bank will contact you for further verification. Either you have to take documents to the bank or bank will send their personnel at your home to collect your documents.

• The bank will also investigate the property before giving the nod for the home loan.

• If the verification goes right, you will get approval for the home loan instantly.

Apply for IDBI Home Loan Offline

There are four ways to apply offline:

• Through the IDBI Bank branch locator, find the nearest IDBI Branch. Once you visit the bank and contact the officials, they will ask you for the necessary documents and begin the loan process which includes checking your credit score, investigating the property value, technical and legal checks on the property, and calculation of your eligibility. The bank will decide the result of your loan application based on the evaluation results. (What is credit score?)

• Call the home loan sales officer of your bank branch.

• Give your details to IDBI Bank online under 'Help Us Contact You' section so that the bank officials can contact you.

• Download the application form of home loan from the IDBI Bank's website, fill and submit it at the bank branch.

IDBI Bank Home Loan Interest Rate

IDBI Bank provides attractive interest rates on home loans:

Floating rate on IDBI Home Loans

Loan Amount	Salaried/Self-Employed Professionals	Self-Employed Non-Professionals
< or = Rs 35 lakhs	6 months MCLR +0.15%	6 months MCLR +0.20%
35lakhs-75 lakhs	6 months MCLR + 0.30%	6 months MCLR + 35%
> 75 lakhs	6 months MCLR + 0.40%	6 months MCLR + 0.50%

Home Loan Interest Saver: One Year MCLR + 0.35% (applicable on all the loan amounts)

IDBI Neev (Loan for construction of the house)

Loan Amount	Neev	Neev 2.0
< or = 35 lakhs	1 yr MCLR + 0.45%	1 yr MCLR +0.75%
35 lakhs-75 lakhs	1 yr MCLR + 0.70%	1 yr MCLR +1.00%
> Rs 75 lakhs	1 yr MCLR + .95%	1 yr MCLR + 1.25%

IDBI Bank also finances rural and semi-urban housing

The rate of interest: 6M MCLR + 0.00% on all the loan amounts.

Top Up Loans

For Housing Loan Customers

The top-up amount is a hundred percent of the original sanction. For housing: Prevailing home loan rate/product rate + 0.10% For non-housing: Prevailing rate of home loan /product rate + 0.20%

Top Banks Offering Lowest Home Loan Interest Rate in 2019

Home Loan Provider	Home Loan Interest Rates	Processing Fees	Prepayment Charges
Yes Bank	9.85%	0.5% of loan amt. or Rs.10,000 whichever is higher (+GST)	NIL for floating rate loans
SBI	8.55%	Rs. 0 – 10,000	NIL
HDFC Bank	8.65%	Up to 0.5% of loan amt	NIL
ICICI Bank	8.80%	0.5% – 1.00% of loan amt.	NIL
PNB Housing Finance	9.10%	Up to 1% of loan amt	NIL
Axis Bank	8.90%	Up to 1% of loan amt	NIL
IDBI Bank	8.75%	0.5% of the loan amount	NIL
Punjab National Bank	9.05%	Nil	NIL
Canara Bank	8.70%	Varies based on applicant profile	NIL
Bank of Baroda	8.70% - 9.70%	0.25-0.50%	Nil for floating rate loans
Kotak Bank	8.90% - 8.75%	Maximum 2% of the loan amount + GST( it varies as per the loan amount)	6% of the foreclosure loan amount within one year and 5% plus GST otherwise.
IndusInd Bank	9.50%	Up to 2%	NIL
RBL Bank	10.45-11.80%	Rs. 5000-15000	Nil for floating rate loans
Andhra Bank	8.75%	0.5% of the loan amount	NIL

Types of IDBI Home Loans

Extensive Range of Home Loan Products: 

• Home Loan

• Home loan interest saver

• Home loan top-up

• Home loan - takeover facility

• Home improvement loan

• Home extension loan

• Home loan - Booking finance

• Home loan - Refinance facility

How Much IDBI Home Loan Can I Get on My Property?

The loan eligibility is also based on the property value that has been selected by you. The loan amount that would be given by the bank will be decided based on your property value, your capacity to repay the loan amount, and many other factors that are required to determine your eligibility. You can get up to 90% of the loan depending on the value of your property.

Property Value                                      LTV

Less than 30 lakh                                    90%

Between 30 lakh and 75 lakh                  80%

Above 75 lakh                                         75%

 

How to Calculate IDBI Home Loan EMI?

The bank has an EMI calculator on its website to facilitate fast computation of EMI that you would pay for several amounts of loan and tenures. The EMI applicable on the loan amount can be determined by adjusting the values of the principal amount (P), time duration (N), and interest rate (R) through the sliders in an EMI calculator.

Eligibility for IDBI Home Loan

Any Indian resident/NRI may apply for IDBI Bank Home Loan if the eligibility criteria is met:

• The applicant should either be a salaried individual, self-employed, or a business person.

• The applicant can be a professional such as a doctor or lawyer.

• The minimum age of the applicant should be 22 years for salaried individuals and 25 years for self-employed individuals.

• The maximum age of the borrower at the end of the loan term should be 70 years. It means that the tenure of loan for an applicant can't extend beyond the age of 70 years.

• The applicant may apply alone or jointly with other members of the family.

• The income of the co-applicants is considered for computation of capacity to repay and to determine the amount of loan that can be lent to the applicants.

Some other factors are:

• Income

• Qualification of the applicant

• Number of dependents

• Assets, liabilities, and continuity of occupation of the applicant

• Savings history

Home Loan Eligibility Based on Salary

The net monthly income of the applicant (take home salary after all deductions like PF, ESI, Gratuity) determines the home loan paying capacity.

Let's discuss this with an instance. Suppose your net monthly income is Rs. 25,000 and the cost of the house you are buying is Rs. 40 lakh, then an interest rate of 8.80% offered by IDBI Bank (assuming that you have no other loans to pay), you will be eligible for Rs. 36.64 Lakh to Rs. 41.12 Lakh loan amount depending on your age.

Similarly, if you are earning a net income of Rs. 75,000, you might be eligible for a loan amount of Rs. 73.29 Lakh to Rs. 82.25 Lakh at the same rate of interest depending on your age while taking the loan.

Documents Required for IDBI Home Loan

For salaried employees

• Filled up loan application form.    

• Two passport size photo   

• Identity proof: Passport/ Driving Licence/ Voter ID/ PAN   

• Residential address proof: Registered Rent Agreement/ Utility Bill (up to 3 months old), Passport.   

• Income Documents – 6 months payslip, Form 16 (of last two years), six months bank statement showing salary credit and if any EMI has been debited.

For self-employed individuals

• Filled-up loan application form

• Two passport size photos    

• Identity proof: Passport/ Driving License/ Voter ID/ PAN

• Residential address proof: Registered rent agreement / utility bill (up to three months old) / Passport   

• Business proof: VAT/service tax registration, incorporation details in case of companies, business address proof, profit and loss account, balance sheet certified by CA, copy of partnership deed, proof of business existence and business profile

Penalties or Other Charges of IDBI Home Loan

• Processing fee: The bank levy 0.50% processing fees of the loan amount and a minimum of Rs. 2,500.

• Other charges: The bank also takes professional and legal fees, which differ with time.

• Prepayment charges: If you decide to foreclose the loan or transfer it to another bank, you can apply for the same to IDBI Bank and follow the RBI rules, which states zero charges on floating rate home loans.

Minimum Credit Score for IDBI Home Loan

Credit Score: Your credit history determines your credit score. The banks consider it as a barometer to gauge your past credit behavior, and hence, credit score becomes the most critical factor in defining your eligibility to get a home loan.

While checking your eligibility for a home loan, IDBI Bank will look at the complete credit report, which includes all past running loans and track record of your payment on loans and credit cards. A higher credit score increases your chances of getting loan approval. IDBI Bank requires you to have a minimum credit score of 700 to be eligible for a home loan.

IDBI Home Loan Interest Rate

The interest rate of the home is decided based on three parameters:

• Loan amount: The interest rate will be determined based on the loan amount that you want to borrow. Higher is the loan amount; lesser the interest rate will be.

• Salary: Higher is the salary, lower will be the interest rate.

• Type of loan opted: Women borrowers can enjoy a lower rate of interest on home loans.

News About IDBI Home Loan

LIC-owned IDBI Bank has reduced lending rates by five basis points across most tenures. The new one-year MCLR to which home loans are priced has been reduced to 9%, the bank said in a statement. The revised six-month and two-year MCLR now stands at 8.60 percent and 9.25 percent respectively. The bank has decreased its one-month lending rate by ten basis points to 8.15 percent.

IDBI Home Loan FAQ

What is the longest loan tenure I can choose under IDBI Bank home loan?

IDBI Bank offers a maximum tenure of 30 years to repay your loan with the benefit of paying low EMI/month.

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

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

Can I foreclose my housing loan? What are the fees applicable?

Yes, you can foreclose home loan in IDBI Bank with no charges.