IDBI Bank was established in the year 1964 for the purpose of providing credit and financial assistance for the developing Indian industries.
If Buying a house is currently your top priority, look no further. Owning a home is now easier than ever before. IDBI Home Loans offer attractive options and a quick services with documentation, processing and other requirements for home loan financing.
In this article, we are going to cover all possible questions that are related to IDBI Bank Home Loan.
To begin with, It is vital to understand the various cost factors involved for a housing loan with regards to the banks funding and your personal contribution. IDBI Bank presents different interest rates for the different category from 8.35% – 8.65%
|Loan Amount||IDBI Bank Home Loan Interest Rate||Rate for Female Borrower|
|Upto Rs. 25 Lakh||8.40%||8.35%|
|Rs. 25 Lakh – 75 Lakh||8.55%||8.50%|
|Rs. 75 Lakh – 2 Cr||8.65%||8.60%|
|Above Rs. 2 Cr||8.65%||8.60%|
You definitely want to ensure that your lender provides auto-adjusted benefits on interest rates that extends into the future. That’s the reason why you need a credible lending institution with a dedicated and experienced workforce who will guide you through the entire process.
Features of IDBI Bank Home Loan
- IDBI Bank Home Loans are available for both salaried and self employed.
- Special rates for women customers.
- Home Loans granted to age group between 22 to 70 years.
- Security: Generally Mortgage of property you are planning to purchase, renovate or construct.
- Loan to Value Ratio is 90%.
- Tenure of loan is between 5 to 30 years.
- Interest rates range from 8.35% to 8.65%.
- EMI of Rs. 758 per lakh
So, are you ready to buy a house?
If the answer is YES, you must be having a lot of questions in your mind like:
- Am I eligible for the loan?
- Where will I arrange the money from?
- How much EMI will I need to pay every month?
- How can I compare the EMIs of different banks on my own?
- Where will I arrange the down payment amount and EMI amount from?
- How much down payment do I have to make?
Let’s understand this with a simple example:
Let’s assume a scenario. Arjun a young entrepreneur has a unique opportunity to buy a plot of land in an expensive gated colony. The gated colony has just begun development and the builders have offered Arjun a discounted price of Rs. 50 lakhs. Sadly Arjun’s funds are low to make his dream a reality. Therefore Arjun plans to approach IDBI Bank.
He inquires about the home loan in detail. He is feed with so much information; he gets puzzled. Besides, he decides not to take any burden regarding the loan. In this case Arjun thinks of beginning to save from today, so that he is able to pay the initial amount of the loan as well as the EMIs. Here lies the challenge! He wants a good return on every penny spent.
This is where Home loan EMI calculator and ClearTax’s Save is a simple solution to all of Arjun’s financial problems.
ClearTax offers a brilliant way to save for your future financial goals through ClearTax Save!
Just like Arjun You can now save for your initial down payment as well as other payments. But we also recommend you calculate and judge your investment options anyway. In general, people start saving their money in either of these, say RD (Recurring Deposit), Savings account, SIP (Systematic Investment Plan) etc.
Let’s find out the best way to save your money for down payment and for other expenses too:
|Loan Value||50 lakhs|
|Time||2 yrs. (24 months)|
|Down payment||20% of Loan value = 10 lakhs|
Now, consider different scenarios for saving your money for the next 2 years.
|Type of Investment||Interest Rate||Maturity Amount after 2 Years|
|Savings Account||4%||Rs. 10,42,735 (Gains=Rs. 42,735)|
|Recurring Deposit||6.75%||Rs. 10,73,424 (Gains =Rs. 73,424)|
|SIP||14-18%||Rs. 12,10,940 (Gains = Rs. 2,10,940)|
Hence from the above table SIP is the most rewarding saving’s scheme; as SIP will enable you to invest regularly every month by diversifying your investment resulting in you owning your dream home sooner than you expected.
Home Loan EMI Calculator, how does it work?
A Home Loan EMI Calculator is a handy tool that calculates the monthly amount payable to the lender (Bank) every month. To calculate the EMI applicable on your loan amount, you need to use the sliders above to adjust the values of the Principal amount (P), Time duration (N), and Rate of interest (R). EMI calculator.
Follow these steps to calculate your EMI Amount.
- Use the slider for Selecting Loan Amount
- Select the Loan tenure in Months using the slider
- Move the slider and select the Interest Rate
- Recalculate your EMI anytime by changing the input sliders
- EMI will be calculated instantly when you move the sliders.
Parameters to decide Interest Rates:
3 basic criteria on which the loan interest rate would largely depend are:
• Loan amount: Home Loan amount will decide the interest rate you are going to pay. The more the loan amount, the lesser the interest rate will be
• Your Salary: higher the salary amount, lower would be the interest rate
• Type of loan opted for: Women borrowers have a fair deal now! They can enjoy a lower rate of interest on home loans.
It is generally advantageous to take a housing loan as it will allow you to get tax exemptions. However, you must consult your CA/ income tax advisor to know the benefits/disadvantages in your specific case.
To become eligible for IDBI Bank home loan the eligibility standard must be matched. That becomes an important deciding factor for your loan amount. Instances like:
- Salaried, Self- Employed Professional or a Businessman
- Number of dependents
- Co-Applicants Income
- Assets, Liabilities, Stability, and Continuity of Occupation of the borrower
- Savings History
Further, the loan eligibility will also be dependent on the value of property selected by you.
The deciding factor of the loan amount that would be granted to you will be the close assessment of the value of the property, the capacity to repay the loan amount and many others to determine the potential borrowers. So, an eligibility calculator can be used for the same.
Some of the key eligibility factors are listed below:
|Interest Rate||9.35 % – 10.50%|
|Age||21 – 65 years|
|Job Stability in case of Salaried (in years)||2 years|
|Loan to Value Ratio||Up to 90%|
In addition to the mentioned interest rates, home loan also carries the processing fee, foreclosure charges, actual charges towards valuation fee, advocate’s fee for property search, title investigation report, stamp duty and other charges that are applicable.
Let’s discuss some charges in detail:
- Processing Fee – IDBI Bank charges 0.50% processing fees of the loan amount and a minimum of Rs. 2,500
- Technical and Legal Charges – IDBI Bank also charges technical and legal fees which differ with time according to the criteria.
- Prepayment Charges: If you decide to foreclose or transfer your housing loan to another bank, you need to submit an application for the same to IDBI Bank and follow RBI rules, which states nil charges on floating rate home loans.
Process of Applying
You can apply for a IDBI Bank home loan by contacting the bank directly or by applying online. Availing a loan through an online marketplace improves the chances of getting best loan rates, low processing fees and special offers in the form of cash backs. Once you approach the bank, they will collect your documents and initiate the loan process which includes checking your CIBIL score, the value of the property, technical and legal checks on the property, eligibility calculation. The bank will give a decision on your loan based on the evaluation results.
|Filled up loan application form||Filled up loan application form|
|2 Passport Size Photo||2 Passport Size Photo|
|Identity Proof – Passport/ Driving Licence/ Voter ID/ PAN||Identity Proof – Passport/ Driving License/ Voter ID/ PAN|
|Residential Address Proof – Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), Passport||Residential Address Proof – Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), Passport|
|Income Documents – 6 months payslip, 2 years Form 16, 6 months bank statement showing salary credit and any EMI debit||Business proof such as VAT/ service tax registration, incorporation details in case of companies, business address proof, profit and loss account and balance sheets certified by CA, copy of partnership deed and proof of business existence and business profile|
IDBI Bank Tax Benefits:
Taxpayers availing home loan do get some tax benefits. The principal repaid can be claimed under Section 80 C for up to Rs 1.5 lakhs. Further, the interest component can be claimed as a deduction up to Rs 2 lakhs in case of a self-occupied property and entirely if the property has been let out.
Other Banks offering Home Loans: