IDBI Bank Loan Against Property

IDBI offers loan against property to borrowers who require money to meet business and personal needs, holding their existing property (residential or commercial) as collateral. Availing a loan from IDBI has some fantastic benefits, some of which are listed below:

• Pay low EMIs for a tenure of 15 years

• Overdraft facility is available

• Loan amounts of up to Rs. 10 crores and above are made available

IDBI Bank Loan Against Property Interest Rates and Processing Fees

IDBI Bank Mortgage Loan	Interest Rate
IDBI Bank Loan Against Property Floating	10.20% - 10.70%

 

IDBI Bank Loan Against Property Floating
Loan Amount	Interest Rates
Upto ? 25 Lakh	10.20%
? 25 Lakh - ? 75,00,000	10.20%
? 75 Lakh - ? 3,00,00,000	10.55%
Above ? 3 Crore	10.70%
OD Facility
Loan Amount	Interest Rates
Upto ? 25 Lakh	10.60%
Above ? 25 Lakh - ? 75 Lakh	10.60%
Above ? 75 Lakh - ? 3 Crore	10.60%
Above ? 10 Crore	10.60%

Apart from the interest rate, a property loan has other charges associated with it as well,  which include:

• Foreclosure - These charges are to be paid if you want to repay the whole amount of credit before the completion of tenure. Here are the prepayment charges:

  • Within six months of borrowing loan - 2-3% of the loan amount

  • After six months - NIL

• Processing  - IDBI Bank levies a processing fee of 1% of the loan amount.

• Other fees - The bank also levies technical and legal charges, which are explained to the customer during the loan process.

Features of IDBI Bank Loan Against Property

• The borrower can use this fund for the expansion of his/her business.

• Education and marriage expenses can be quickly funded through this loan.

• If the borrower wishes to buy a new home, he/she can apply for the loan.

• People can borrow funds for the improvement or extension of the existing property as well.

• The burden of medical treatment expenses can be dealt with.

• Any other personal needs can also be fulfilled with the help of a loan against property.

• Loan amount

  • Up to Rs.10 crore loan and above can be borrowed depending upon the merit of the proposal. 

•  Loan tenure

  • Maximum tenure of up to 15 years.

IDBI Bank Loan Against Property Schemes

IDBI Loan Against Property (Overdraft Facility)

This loan has been customized to cater to the needs of the business community. Businesspeople can avail this loan for the purchasing or stocking of raw materials, payment of salary, wages, etc. and also for bridging the gap between the supply of goods and payments after that.

IDBI Loan Against Rent Receivables

This loan has been designed to address the financial requirements of people having self-owned property given on rent and to enable them in getting liquidity against the expected future rentals of the property.

IDBI Bank Loan Against Property with Interest Saver (LAPIS)

This loan provides a facility for linking the loan account of the borrower with the Flexi Current Account. The interest liability of your loan reduces to the extent of surplus funds available in the current operative account. You will be allowed to deduct cash from this operative current account or deposit in it as and when required. Interest on your loans will be calculated by subtracting the balance in the current account (based on EOD) from the outstanding loan amount.

Maximum funding provided in the loan:

• Up to 65% of the market value of the property (residential and self-occupied)

• Up to 55% of the market value of the property (residential property leased out)

• Up to 50% of the market value of the property (commercial or industrial)

IDBI Bank Reverse Mortgage Loan

• This loan has been designed to supplement the present income/pension of senior citizens for covering expenses such as medical treatment, upgradation or renovation of the existing property, business purposes, etc.

• Loan amount: 

  • Up to Rs 2 crore (subject to the market value of the residential property as calculated by the bank, based on the borrower's age, and according to the interest rate)

IDBI Bank Commercial Property Purchase

• This loan has been introduced to facilitate the purchase of readily built/re-sold building units for commercial purposes.

• Loan amount:

  • Up to Rs 5 crore and above can be provided, depending upon the individual case.

• Maximum funding provided

  • Up to 55% of the market value or 65% of the registered value (whichever is lower, inclusive of stamp duty and registration charges).

IDBI Bank Loan Against Property Top-Up

IDBI Bank also provides mortgage loan balance transfer from another bank based on the eligibility criteria of IDBI Bank.

Eligibility for IDBI Loan Against Property

IDBI has detailed criteria to determine the eligibility of a potential borrower for mortgage loans. Some of the essential eligibility criteria are:

Age                                                                             22-60 years

Loan Amount                                                      ?40 Lakh - ? 10 Cr

Minimum Credit Score                                            650 and above

Loan to Value Ratio (LVR)                                  maximum upto 65%

FOIR (Fixed Obligations to Income Ratio)             upto 0.65

Others factors that play a part in the eligibility criteria are:

• Income: Property loans are intended mostly for self-employed individuals, to meet their business requirements. However, to increase the loan amount, they may also club the income of family members, such as spouse, parents, children, and siblings.

• Business Stability: The bank will ask for three years worth of ITR to consider the borrower as eligible for LAP.

• Credit Score: A feeble credit history and poor repayment record of existing loans and credit cards can harm the eligibility. A clear repayment record improves the chances of getting an approval on the loan. IDBI Bank grants loans only to borrowers having a credit score of 650 and above.

• Loan Amount: The bank disburses an amount ranging from ?40 lakh - ?10 crores. For improving the chances of approval, borrowers should apply for a loan amount that they can quickly repay.

• Property Value: The market value of the property to be mortgaged is used to determine the maximum loan amount, which can range up to 65%, depending on the type of property.

• Fixed Obligations to Income Ratio (FOIR): IDBI Bank will also consider the proportion of fixed obligations to income (FOIR) of the borrower while determining loan eligibility. Fixed obligations comprise estimated average monthly expenses and EMIs that the borrower is paying currently on other existing loans. Minimum FOIR required to be eligible for an IDBI Bank Mortgage Loan is 0.65.

Documents Required for IDBI Bank Loan Against Property

Self-Employed Individuals

• A filled in loan application form

• Two passport size photos

• ITR for the last three years

• Identity proof: Passport/ driving license/ voter ID/ PAN.

• Residential proof: Leave and license/ registered rent agreement/utility bill (up to 3 months old), passport.

• Business proof: VAT/ service tax registration, incorporation details in case of companies, address proof of the company, profit and loss account, balance sheets certified by a CA, a copy of the partnership deed (in case of partnership firms), proof of business existence, and business profile.

Salaried Employees

• A filled in loan application form

• Two passport size photographs

• ITR for last one year

• Identity proof: Passport/ driving license/ voter ID/ PAN

• Residential proof: Registered rent agreement/utility bill (up to three months old)/leave and license/passport.

• Income documents: 6 months’ payslip, Form-16 for two years, last 6 months’ bank statement reflecting salary credit and EMI debit if any.

Property Documents

• Registered sale deed/lease deed

• Past rent deeds (each transaction with respect to this property since the first allotment)

• Latest payment receipts of property tax

• Approved building plan from the Municipal Corporation

Loan Against Property EMI Calculator

• Mortgage loan EMI from IDBI Bank depends upon the type of property (residential, commercial, or industrial), occupation (businessmen, self-employed, or salaried), loan amount, tenure, and the interest rate.

• With IDBI Bank now offering a loan tenure of upto 15 years at attractive interest rates starting from 10.20%, your EMI can be as low as Rs. 1,087/Rs.1 lakh of the loan amount.

• The EMI comprises both principal repayment and interest payment. While the EMI amount remains constant, the interest component keeps reducing, and the principal component keeps surging, except in the case of an increase in the interest rate.

• Getting an EMI estimate gives flexibility to the borrowers. They can determine whether they can comfortably pay the loan amount or not, thus allowing them to select the right combination of loan amount and tenure.

How to Apply for IDBI Loan Against Property

You can apply for IDBI Loan against property in either of two ways: online or offline. Let's take a look at the process:

Online application:

Visit the website of IDBI, fill in the loan application form, and follow the instructions. An IDBI agent will contact you soon to guide you through the loan application process.

Offline application:

If you are skeptical about applying for a loan online, you can always visit any IDBI Bank branch to apply for a loan. Request an IDBI Bank executive to guide you through the loan process.

FAQs

Can I add the income of my spouse with mine and apply for a joint property loan?

Yes, you can add the income of your spouse to increase loan eligibility if your spouse is a co-owner of the property or a guarantor of the loan.

Are prepayment or foreclosure fees applicable to the IDBI Bank loans?

You can prepay a loan against property without any penalty or fees given your loan is at a floating rate and not at a fixed rate of interest.