The government-owned bank formerly known as, Industrial Development Bank of India, is headquartered in Mumbai. It is primarily a development bank that provides credit to facilitate development in India. Having 3700 ATMs, 1995 branches, and 1382 centers, IDBI is the 10th largest development bank in the world with regard to its network.
| Interest rate | 8.35% – 8.65% floating interest |
| Loan Tenure | Up to 30 years |
| Pre-closure charges | Nil |
IDBI bank offers their home loans at a floating rate of interest that ranges between 8.35% – 8.65%. The loan tenure can be up to a maximum of 30 years and the banks don’t charge for pre-closure of the loan.
IDBI Home Loan Can Be Availed For:
- Purchasing a ready to move in or under-construction house either by resale or direct allotment
- Purchasing a plot and construction thereon
- Purchasing land
- Construction of a home
- Improving/renovating an existing house
- Taking over an existing loan from another lender
- Refinancing the purchase or construction of the house within a year from the date of the transaction
IDBI Bank Home Loan Interest Rates Table
| Up to Rs.30 lakh | For women across all borrowing categories and salaried – 6m MCLR + 0.00% = 8.35% |
| Others – 6m MCLR + 0.05% = 8.40% | |
| Above Rs.30 lakh and up to Rs.75 lakh | For women across all borrowing categories and salaried – 6m MCLR + 0.15% = 8.50% |
| Others – 6m MCLR + 0.20% = 8.55% | |
| Above Rs.75 lakh | For women across all borrowing categories and salaried – 6m MCLR + 0.25% = 8.60% |
| Others – 6m MCLR + 0.30% = 8.65% |
For up to Rs.30 lakh, IDBI bank charges an interest rate of 8.35% for all women and salaried individuals. For others, a rate of 8.40% will be levied. In the case of loans above Rs.30 lakh and below Rs.75 lakh, an interest rate of 8.50% will be charged for all women and salaried individuals. Everybody else will have to pay 8.55% as interest. For all loans above Rs.75 lakh, an interest rate of 8.60% will be levied for women and salaried individuals while others will pay an interest of 8.65%.
IDBI Bank Marginal Cost of Fund Based Lending Rate (MCLR)
| Tenor | MCLR |
| Overnight | 8.00% |
| One Month | 8.10% |
| Three Months | 8.30% |
| Six Months | 8.35% |
| One year | 8.55% |
| Two years | 8.60% |
| Three years | 8.70% |
For an overnight tenor, the MCLR of IDBI Bank is 8.00%. For a month’s tenor, three month’s tenor and six month’s tenor the MCLRs are 8.10%, 8.30%, and 8.35% respectively. While the MCLRs for a year, two year and three year’s tenors are 8.55%, 8.60%, and 8.70% respectively.
Benefits of An IDBI Home Loan
- Assistance in searching for and acquiring a property
- Loan approval even before a property is selected
- Customized home loans for the salaried
- Pre-approved projects for convenient home loans
- Flexible repayment options
- A wide network of branches in India
- The loan can be applied anywhere in the country
- Property can be purchased from anywhere in India
- Experienced employees for a smooth loan processing
- Online application
Documentation Required for the Home Loan
| Salaried Customers | Self Employed Professionals | Self Employed Non Professionals |
| Application form with photograph | Application form with photograph | Application form with photograph |
| Identity and Residence Proof | Identity and Residence Proof | Identity and Residence Proof |
| Latest Salary-slip for last 3 months | Education Certificate and Proof of business existence | Proof of business existence |
| Form 16/ITR | Last 3 years Income Tax returns (self and business) | Business profile |
| Last 6 months bank statement | Last 3 years Profit /Loss and Balance Sheet | Last 3 years Income Tax returns & Last 3 years Profit /Loss Balance |
| Processing fee cheque | Processing fee cheque & Last 6 months bank statements | Processing fee cheque & Last 6 months bank statements (self and business) |
Factors on Which the IDBI Bank Home Loan Interest Rate Depends:
- Applicant’s Salary: The takeaway salary of an applicant is a major factor that determines the rate of interest he/she has to incur. The salary and the rate of interest one have to pay are inversely proportional to each other. Higher the Income, lower the interest rate the applicant has to pay.
- Amount of the Loan: The rate of interest also depends on the approved amount of the loan. The higher the loan amount, the interest rate becomes higher as well.
Tips to Reduce IDBI Bank Home Loan Interest Rate
- Shorter Tenure: The interest rate also varies depending on the tenure of the loan. The shorter the tenure, the lower the total interest paid. However, the Equated Monthly Instalments paid will be higher.
- Increase the EMIs: Increasing the EMI paid will not only reduce the overall interest paid but will also enable you to pay off the loan faster.
