IDBI Home Loan

About IDBI Bank

IDBI Bank is an Indian government-owned financial service company, formerly known as Industrial Development Bank of India, headquartered in Mumbai, India. It was established in 1964 by an Act of Parliament to provide credit and other financial facilities for the development of the fledgling Indian industry. IDBI is currently the 10th largest development bank in the world in terms of reach, with 3700 ATMs, 1995 branches, including one overseas branch at Dubai, and 1382 centers.

What Is a Home Loan?

Home Loan is offered to individuals who wish to construct or buy a house. The property bought or about to be constructed is mortgaged as collateral until the repayment of the loan is completed with full interest. The repayment of the loan generally depends on the capacity of the borrower. Normally, the home loan tenure ranges between 5 to 30 years. The borrower can opt either for floating type of interest or fixed interest rate. Home loan provides tax benefits to the borrowers.

An Introduction to IDBI Bank Home Loans

IDBI Bank offers a wide range of services in the personal loan segment. It is the most preferred bank by all kinds of people for any financial service. IDBI Bank provides customised home loan solutions for purchase of a house, construction and extension of dwelling units. Packed with exclusive benefits, IDBI Bank Home Loans are tailor made, catering to the needs of various customers.

Advantages of IDBI Bank Home Loans

• Low interest rate
• No hidden costs and administrative charges
• No processing fees
• No security needed
• Less paperwork
• No prepayment penalties

Features of IDBI Home Loans

Key Highlights

Objective

Providing home loans for the applicants from Urban area belonging to EWS/LIG intending for acquisition / construction of residential units.  

a. EWS: Annual household income up to INR 3 lakhs

b. LIG: Annual household income above INR 3 lakhs and up to INR 6 lakhs.

c. The beneficiary family will comprise husband, wife, unmarried sons and /or unmarried daughters.

d. The beneficiary family should not own a pucca house either in his /her name or in the name of any member of his / her family in any part of India to be eligible to receive central assistance under the mission.

e. Preference under the scheme, subject to beneficiaries being from EWS/LIG segments, should be given to manual scavengers, women (with overriding preference to widows), persons belonging to Scheduled Castes / Scheduled Tribes /Other Backward Classes, Minorities, Persons with disabilities and Transgender.  

f. The property to be located in one of the 4041 statutory towns as identified by NHB.

Loan tenure

The maximum loan period may be extended based on borrower profile in line with the extant Home Loan norms. 

• Salaried: 30 yrs. and Self-employed: 20 yrs.
• However, for the purpose of computation of interest subsidy the loan tenor to be restricted up to 15 years or the actual loan tenor, whichever is lower.

Prepayment Charges

There are no prepayment charges levied

Processing Fees

There are no processing fees levied

Security

• Residential property.
• Tangible collateral security, if any, in addition to the primary security based on the merit of the case.
• Obtaining guarantee may be explored based on the merit of the case.

Interest Rates

Property Norms

The property that is eligible for the IDBI home loan should of the following

• Carpet Area: EWS: 30 sqr. meters.; LIG: 60 sqr. meters. This carpet area norm is applicable for all types of residential properties, constructed / acquired / enhanced
• The houses constructed/acquired with central assistance under the mission should be in the name of the female head of the household or in the joint name of the male head of the household and his wife, and only in cases when there is no adult female member in the family, the house can be in the name of male member of the household

Interest Subsidy

The Interest subsidy would be computed based on the parameters as under:

• The loan amount to be restricted up to INR 6 lakhs i.e. actual loan amount or INR 6 lakhs, whichever is lower.
• The loan to be restricted up to 15 yrs. i.e. actual tenor or 15 years, whichever is lower.
• Irrespective of rate of interest charged, the subsidy would be computed for interest up to 6.5% p.a. 
• The interest subsidy would be computed in the excel calculator as provided by NHB. Such computation would be based on Net Present Value(NPV) method, to be discounted @ 9%.    
• The quantum of interest subsidy would be paid upfront by the Govt. for crediting the same to the loan account of the beneficiaries in order to lower the EMI burden of the eligible borrowers. This subsidy amount would have to be treated as prepayment and accordingly it has to be settled against the principal.
• On credit of such subsidy in the loan account of the borrowers, such loan accounts have to be re-phased.     
• n case a borrower who has taken a housing loan and availed of interest subvention under the scheme but later on switches to another PLI for balance transfer, such beneficiary will not be eligible or claim the benefit of interest subvention again. 

Documents Required to Apply for IDBI Bank Home Loans

Important documents to be submitted while applying for home loan with IDBI Bank

• Completed loan application
• 3 Passport size photographs
• Proof of identify (photo copies of Voters ID card/ Passport/ Driving licence/ IT PAN card)
• Proof of residence (photo copies of recent Telephone Bills/ Electricity Bill)
• Statement of Bank Account/ Pass Book for last six months
• Form 16/IT returns for the last two financial years for salaried employees
• IT returns for the three years for self-employed professionals

EMI Payment Methods

Your IDBI Bank home loan can be repaid in following three ways.

Standing Instruction (SI):

If you are an existing account holder with IDBI Bank, Standing Instruction is the best mode of repayment. Your EMI amount will be debited automatically at the end of the monthly cycle from the IDBI Bank account you specify.

Electronic Clearing Service (ECS):

This mode can be used if you have a non-IDBI Bank account and would like your EMIs to be debited automatically at the end of the monthly cycle from this account.

Post-Dated Cheques (PDCs):

You can submit post-dated EMI cheques from a non-IDBI Bank account at your nearest IDBI Bank Loan Centre. A fresh set of PDCs will have to be submitted in a timely manner. Please note Post Dated Cheques will be collected non-ECS locations only.It is recommended that you opt for either the SI or ECS mode of payment for faster and less prone to error than the use of PDCs.

How to Apply for IDBI Bank Home Loan?

You can either apply online or visit a nearby IDBI Bank branch for the application. You can also download the home loan application form from the IDBI Bank official website, complete the form and submit it the bank representative.

You can also check your eligibility for a home loan through CreditMantri and apply for it.

Summary of IDBI Bank Home Loans

With attractive interest rates and low processing fees, IDBI Bank caters to the needs of various sections of people. Floating and fixed type of interest rate are available according to the preference of the customers. The borrowers can prepay the IDBI Bank home loan without any penalty. IDBI Bank home loan is the best option to buy or construct your dream house.

IDBI Bank Home Loan FAQs

1. What are processing fees on IDBI Bank Home Loans?

There are no processing fees

2. Is there penalty for prepaying the IDBI Bank Home Loan?

No penalty is levied for prepaying the IDBI Home Loan

3. Can I get IDBI Home Loan without a Guarantor?

No need of a guarantor

4. What is the maximum loan repayment period for IDBI home loans?

The maximum repayment period is 30 years

5. How Can I apply for an IDBI home loan?

You can either apply online or visit a nearest IDBI Bank branch and take the help of the bank’s representative.