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Home Loan

IDBI, a pioneer in the commercial banking sector has been providing constant contributions to the personal banking and financial resolution of the retail and commercial sector. The bank’s motto “to be the most preferred and trusted bank” is apparent from its constantly growing innovative business ideas and strategies in terms of service, manpower and market development both in urban and rural areas. It is, therefore, emerging as one of the most preferred banks in the true sense.


Every individual wants to have a home of their own be it a house or a flat and for this dream, one needs quite a huge sum of amount in order to accomplish this vision. And this amount can be availed through applying for home loans which are there available in the market. Home loans are not only taken to purchase new properties but to rebuild or to reconstruct/renovate the existing property as well.

IDBI Bank Home Loan Interest Rates

Interest Rate 8.35% onwards
Processing Charges 0.5% of loan amount plus applicable taxes
Loan Tenure Upto 30 years
Loan Amount Upto Rs. 10 crores
Cheque Bounce Charges Rs.500 per instance
EMI Rs.758 per Lakh
Prepayment or Foreclosure Charges Nil if floating, upto 2% for fixed rate 


 

Features of IDBI Home Loan


IDBI bank offers in-principle loan sanction even without finalizing the property based on the applicant’s repayment capacity. The applicant may further search the property in accordance with the loan amount sanctioned.  For final disbursal, the property thus identified should meet the criteria as decided by IDBI bank.

The repayment of home loan is done in the form of equated into monthly installments or popularly known as EMI. EMI consist of Principal and interest component which is charged on reducing Balance in home loans. The applicant may choose the modes of repayment as per their convenience i.e. either as Standing Instruction from IDBI Account or through Electronic Clearing System from their non IDBI account.The home loan interest rate has been reduced more than two times, so this is the best time that you can take a home loan at the reduced rate of interest.

Additionally, the borrower can reduce their interest liability by availing IDBI Home Loan Interest Saver. The link is provided on the banks home loan webpage.


Tenure:

For Salaried: Up to 30 years
 

  • For Self Employed Professionals Up to 20 Years
  • For Self Employed Non Professionals Up to 20 Years

Amount:
 

Minimum and the Maximum loan amount is Rs 5 lakhs to Rs 10 crores.

Up to Rs 20 Lakhs – Up to 90% of market value/ document cost of the property whichever is lower.         

Above 20 lakhs to Up to Rs 75 Lakhs – Up to 80% of market value/ document cost of the property whichever is lower. 

Above 75 Lakhs – Up to 75% of market value/ document cost of the property whichever is lower.


Purposes of Availing Home loan


One can take home loans for the below-mentioned purposes:
 

  • Combined Loans for purchasing of land construction of house thereafter.
  • Loans can be taken for buying under construction property or ready property through direct allotment or resale as well.
  • Home loans can also be taken for extension of the existing house.
  • Loans can be availed for existing home renovations and improvements.
  • Transfer of home loans from other banks other than co-operative banks.
  • Within 12 months of the transaction, one can apply for refunding for purchasing or for construction.
  • Loans can be taken for buying of land and construction of a house.
  • Construction Finance.

Eligibility
 

  • IDBI bank evaluates the eligibility for a home loan based on various factors which include Applicants age, Maximum educational qualification, the source of income, spouse income, number of dependents, Job stability , nature of occupation for self-employed individuals, total assets & liability of the applicant and their savings habits.
  • Apart from these individual factors, valuation of the property and its history plays a critical part in the loan eligibility amount.

For Salaried:

Minimum Age – 22 years, Maximum Age – should be less than 70 years at the time of closure of the loan subject to suitable and acceptable repayment track record.


For Self employed Professionals- Doctors, Engineers, Architects, Chartered Accountants, Company Secretary :

Minimum Age – 25 years, Maximum Age – should be less than 70 years at the time of closure of the loan subject to suitable and acceptable repayment track record.


For Self Employed Non Professionals:
 

Minimum Age – 25 years, Maximum Age – should be less than 65 years at the time of closure of the loan subject to suitable and acceptable repayment track record. Under this, the maximum age can be relaxed provided there is a proper and suitable succession plan of the business.

IDBI Home Loan Rate of Interest

Facility / Interest Type

For all loan amounts

Home Loan – Floating

9.30% onwards

Home Loan – Interest Saver Floating

9.60% onwards

IDBI Neev

Below Rs 25 Lakhs - 9.70% (MCLR+ 0.40%)

 

Above Rs 25 lakhs up to Rs 75 lakhs- 9.95%(MCLR + 0.65%)

 

Above Rs 75 Lakhs 10.20% ( MCLR + 0.90%)

Turnover based loan Home Loan

12.45% (MCLR + 3.15% Floating)

Home Loan- Balance Transfer and Top up

 

Internal Top Up

As per existing Home Loan rates of interest based on joint exposure

Balance Transfer

9.75%

 

As per existing Home Loan rates of interest

Top up together with balance transfer

9.75%

 

As per existing Home Loan rates of interest based on joint exposure

When top up amount is more than 100% of the initial and original sanctioned Home Loan

9.75%

 

Where top up amount is more than 100% of the initial and original sanctioned Home Loan amount, the further amount will be given at current Loan Against Property rate.


Other Charges
 

Foreclosure Charges

 

Floating Rate

 

 For Individuals

Nil Prepayment or Foreclosure charges

For Non Individuals as an applicant or as co-applicant

  • Cases sanctioned on or after 28th January 2015 -2% on the outstanding loan amount plus tax.
  • Cases sanctioned before 28th January 2015 –As per the Sanction Letter and Loan terms and Conditions.

Fixed Rate

 

  • For Its Own Funds

 

Within 6 months from Last and final Disbursement

  • Cases sanctioned on or after 28th January 2015 -2% on the outstanding loan amount plus tax.
  • Cases sanctioned before 28th January 2015 –As per the Sanction Letter and Loan terms and Conditions.

After 6 months from Last and final Disbursement

Nil Prepayment or Foreclosure charges

         For Balance Transfer

  • Cases sanctioned on or after 28th January 2015 -2% on the outstanding loan amount plus tax.
  • Cases sanctioned before 28th January 2015 –As per the Sanction Letter and Loan terms and Conditions.

Foreclosure Procedure Time

 

Original document retrieval time

15 working days

Part Payment

 

Minimum Amount

Rs 25000/-

Number of times

Once per month

Penal Interest

5% per annum for the unpaid amount and period

Copy of property documents

Rs 225/-

Default in payment

Rs 300/-

Swapping of PDC/ ECS

Rs 575/-

Duplicate Certificate/ Interest Certificate

Rs 150/-

CIBIL Copy of credit certificate

Rs  50/-

Re issuance of DD/PO

Rs 115/-

Duplicate Statement Charges

Rs 115/-


Tax Benefit under Home Loan


Any Resident Indian can avail a tax benefit for the interest component to the tune of Rs 150000/- and principal repayment u/s 80(C).Tax benefits are available only on the interest charged by Bank.


Balance Transfer


The following are the requirements in case of balance transfer:
 

  • A repayment track record of 12 months is essential.
  • Top up facility up to 100% of the initial or original sanction or approved home loan rate of interest.
  • Supplementary funds in terms of top up.

Security


The title deeds of the property with a memorandum of entry are required to be provided as security. However, the Bank can ask for further security if necessary on a case to case basis.


IDBI Bank Home Loan Interest Saver


This is a product which is a loan account linked to the current account which helps to reduce the interest for the customer. The additional funds in the current account facilitate in reducing the interest by calculating the outstanding balance of loan less the end of day balance in the flexi current account. One can use the current account deposit the excess funds like his or her savings, bonuses and in this way, he or she will have the flexibility not only to withdraw as and when needed but also to reduce the interest on the home loan account to a great extent.You can also calculate home loan EMI and then you can decide which bank is offering


Like any other normal account, this account also offers a cheque book and an ATM card is also issued which a customer can use and operate the account according to his or her need and requirements.IDBI offer facility of balance transfer for home loan taken by any other bank, You can move to IDBI and enjoy the maximum benefits.

Documentation

The following set of documents is required for each segment:


For Salaried:  The documents needed for salaried are as follows:
 

  • Identity and Address Proof.
  • Last 3 months  Salary Slip.
  • Form 16/ ITR.
  • Last 6 months Banks Statements.
  • A cheque for Processing Fee.
  • Application Form with recent photo.

For Self employed Professionals- Doctors, Engineers, Architects, Chartered Accountants, Company Secretary:
 

  • Identity and Address Proof.
  • Educational Qualification Certificate with proof of business continuation.
  • Form 3 years ITR and Profit & Loss and Balance Sheet.
  • Last 6 months Banks Statements.
  • A cheque for Processing Fee.
  • Application Form with recent photo.

For Self Employed Non Professionals:
 

  • Identity and Address Proof.
  • Proof of business continuation.
  • Form 3 years ITR and Profit & Loss and Balance Sheet.
  • Last 6 months Banks Statements.
  • A brief description on the business outline.
  • A cheque for Processing Fee.
  • Application Form with recent photo.

Various Repayment Options


For ease and convenience IDBI bank has come up with various options of repayment i.e, to repay back the EMI. There are 3 methods which are there namely.
 

  • Step Up Repayment facility: This repayment facility is well thought out for professionally qualified executives who have a future career growth and are eligible to take a much higher amount of home loan which is based on the increase in their prospective income in near future. The estimation is taken at 6 to 8% for their income growth between 5 to 20 years.
  • Step Down Repayment Facility:  This is again a facility which is planned keeping in mind the income generation of the applicant which reduces with passage of time when he or she retires. The main motive is to avail a home loan by combining child and parent together to get a higher amount of home loan and also after retirement the adult child can take care of the EMIs.
  • Tranche Based EMI: This is mainly suitable for customers who are buying under construction properties where customers pay only interest part for the disbursement amount.

IDBI Home loans applications

  • Any interested applicants can apply for IDBI Home Loan through various modes as may deem convenient to them.
  • Walk-in at any IDBI bank Branch – the applicant may visit any of the nearest IDBI Bank Branch along with the documents and may apply for the IDBI home loans. Braches do have loans help desk to assist each and every applicant with the documentation, property selection and disbursement of the loan amount. One can find their nearest IDBI bank branch offering home loans through the online branch Locator which is available on IDBI bank’s website
  • By Calling IDBI Home Loan Sales Officer – One may visit the IDBI bank’s home loan section on the website and select the provision to call  IDBI Home Loan Sales Officer. Complete assistance is offered to the applicant  at doorstep for each and every concern pertaining to the IDBI home loans
  • Apply online- IDBI bank offers its aspiring home loan applicants to apply online within few minutes and hence saving their time and effort for applying for   the home loans with IDBI bank. To apply online , the applicants needs to check their eligibility and fix on an amount . Once they have applied online , the IDBI bank Home loan sales team will get in touch instantly to take forward the loan application .
  • Online Help Desk - In case the applicant is not sure or has some concerns regarding his home loan application, they may request a call back from IDBI bank. All one has to do is go to IDBI bank’s website and click the option  “Help us to Contact You”. The concerned team from IDBI bank shall get in touch instantly.

Why IDBI Home loans?

IDBI Home Loans caters to the needs and requirements of the individuals with a personalized and modified approach. The bank’s home loans are based on the below mentioned qualities:-
 

  • Service Quality
  • Know-how and profound and deep knowledge of the home loan industry.
  • Clearness & Lucidity.
  • Personalized and tailored method.
  • Faster Processing.

Again, the advantages of IDBI home loan can be summarized as follows:
 

  • Much before the property is selected, the bank follows the in-principle loan approval.
  • Wide range of home loan products like home loan, home loan top up, home loan interest saver, home loan interest saver, home loan for extension, renovation etc.
  • Tailor made home loan features for 3 segments are salaried, self employed professionals and self employed non professionals.
  • Support and help in searching property and making due diligence of property.
  • Approved projects for buyers for their ease to choose the property.
  • Loan can be availed from any part of India.
  • Experienced and knowledgeable manpower.
  • Flexible Repayment Options.
  • With broad network of branches, one can apply with much ease.