IDBI Bank Home Loan Interest Rates

4.5

Owning your own house is one of the most essential aspirations in anyone’s life. The home loan solutions offered by IDBI are designed to provide convenience and a pleasant experience. You can get home loans ranging from Rs. 30 lakhs up to 75% of the property value. You can easily repay the loan in tenures of up to 30 years. You can account for any unforeseen price hikes by utilising the top-up facility. You can get a top-up loan of up to 100% of the initial amount.

  • Home Loan offer for You

  • 8.05% - 13.45%

    Interest Rate (p.a.)
  • ₹10K - ₹50Cr

    Tenure(1 - 5 Years)
  • ₹2,030 - ₹2,298

    EMI Per Lakh
  • 8.05% - 13.45%

    Interest Rate (p.a.)
  • ₹10K - ₹50Cr

    Tenure(1 - 5 Years)
  • For Dropline OD: 1% of the limit subject to a maximum of Rs 10 lakh.

    Processing Fee

Compare IDBI Bank Home Loan Interest Rates with Other Lenders

The table below compares the IDBI Bank home loan interest rates with other banks and lending inst.

  • Starting Interest Rate (p.a)
  • Processing Fee
  • Rating
  • Min. Loan Amount
  • 5 Lac
  • 20 Cr
Years
  • 5
  • 30
%
  • 6
  • 20

Monthly Loan EMI

Payment Breakdown:

Principal Amount

₹10,00,000

Interest Payable

Total Amount Payable

IDBI Bank is one of the leading public banks that offer home loans at affordable interest rates. The IDBI Bank Home Loan Interest Rates range from 6.80% to 8.80%, with a 30-year loan repayment tenure. The banks offer up to Rs. 10 crores home loans with easy repayment options. The bank offers zero foreclosure charges for the floating rate of home loan interest rates. The bank offers various home loan schemes to cater to its customer base. 

IDBI Bank Home Loan Highlights

IDBI Bank is a public sector bank in India that offers a range of financial products and services, including home loans. IDBI Bank Home Loans are designed to help customers fulfil their dream of owning a home by providing them with various flexible and affordable home loan options.

Some of the key features and benefits of IDBI Bank Home Loans are:

  • Wide range of loan amounts: IDBI Bank Home Loans can be availed for a wide range, starting from as low as Rs. 5 lakhs to as high as Rs. 10 crores, depending on the borrower's eligibility.
  • Flexible repayment options: IDBI Bank Home Loans offer flexible repayment options, with repayment tenures ranging from 5 to 30 years. This helps borrowers manage their EMIs more effectively.
  • Competitive interest rates: IDBI Bank Home Loans offer competitive interest rates, making it an attractive choice for customers looking to buy a home.
  • Quick and easy processing: IDBI Bank offers a quick and hassle-free loan application process with minimal documentation requirements, enabling customers to approve their home loans quickly.
  • Special schemes and discounts: IDBI Bank offers special schemes and discounts for women borrowers and customers with good credit scores, which can help them save on interest costs.
  • Dedicated customer support: IDBI Bank's dedicated customer support team assists customers at every stage of the loan process, ensuring a smooth and hassle-free borrowing experience.

IDBI Bank Home Interest Rates on Loan Schemes

IDBI Bank offers various home loan schemes to their customers. Those schemes, along with ther interest rates, are mentioned below:

Regular Home Loan

The interest rates for IDBI Bank's Regular Home Loan scheme range from 6.90% to 8.40%.

Pradhan Mantri Awas Yojana (PMAY) Home Loan

IDBI Bank offers a PMAY Home Loan IDBI Bank interest rate scheme at an interest rate of 6.90% onwards for eligible borrowers.

Home Loan Balance Transfer

IDBI Bank offers a Home Loan Balance Transfer facility to transfer existing home loans from other banks at interest rates starting from 6.90%.

Home Loan for NRI

IDBI Bank also offers Home Loans for NRI at interest rates starting from 6.90% onwards.

Special Home Loan Rates

IDBI Bank occasionally offers special home loan rates on select loan schemes for a limited period. These rates can be lower than the regular interest rates.

IDBI Bank Home Interest for Salaried and Self-Employed

IDBI Bank offers home loans to salaried and self-employed individuals at different interest rates based on their income, credit score, and other factors. Here is an overview of the current interest rates for IDBI Bank's home loans for salaried and self-employed individuals-

Loan Amount Bracket IDBI Bank Home Loan Interest Rate Salaried Employee/Self-Employed Individuals IDBI Bank Home Loan Interest Rate Self-Employed Non-Professionals
Up to Rs 35 lakhs six months MCLR +0.15% six months MCLR +0.20%
Above Rs. 35 lakhs up to Rs. 75 lakhs 6 months MCLR + 0.30% six months MCLR + 35%
Above Rs. 75 lakhs six months MCLR + 0.40% six months MCLR + 0.50%

IDBI Bank Home Loan Rate Trends (Historical)

The IDBI Bank Home Loan Interest Rates have undergone several changes over the years. Here is a brief overview of the historical IDBI Bank home loan interest rate trends-

  • In 2017-18, IDBI Bank home loan interest rates ranged from 8.65% to 8.75%.
  • In 2018-19, IDBI Bank home loan interest rates ranged from 8.65% to 9.45%.
  • In 2019-20, IDBI Bank home loan interest rates ranged from 8.80% to 9.45%.
  • In 2020-21, IDBI Bank home loan interest rates ranged from 7.75% to 8.50%.
  • In 2021-22, IDBI Bank home loan interest rates ranged from 6.90% to 8.40%.
  • As of 2022-23, IDBI Bank home loan interest rates range from 6.80% to 8.80%.

It is important to note that interest rates can vary based on the loan amount, tenure, credit score, and other factors. Additionally, IDBI Bank may periodically revise its interest rates based on market conditions and other factors. It is always recommended to check with IDBI Bank for the latest interest rates and offers on home loans.

IDBI Bank Home Loan Interest Rate and Other Charges

Get to know using the IDBI Bank home loan interest rate calculator. You can follow the steps below:

Step 1: Determine the loan amount - Identify the total amount of loan you wish to avail from IDBI Bank for purchasing a house.

Step 2: Check the interest rate - Check the bank's current interest rate on home loans. The interest rate can vary based on the loan amount, tenure, credit score, etc.

Step 3: Calculate the interest using the IDBI Bank home loan interest rate calculator - Use the formula I = P x R x T,

Where,

  • I is the total interest payable, 
  • P is the loan amount, 
  • R is the rate of interest per annum
  • T is the loan tenure in years

For example, if you have availed of a home loan of Rs. 50 lakhs for a term of 20 years at an interest rate of 7.5% per annum, then the total interest payable would be

I = 50,00,000 x 0.075 x 20 I = Rs. 75,00,000

Step 4: Calculate the EMI - Use the formula E = [P x R x (1+R)^N] / [(1+R)^N-1], where E is the equated monthly instalment, P is the loan amount, R is the rate of interest per month, and N is the loan tenure in months. For example, if you have availed of a home loan of Rs. 50 lakhs for a term of 20 years at an interest rate of 7.5% per annum, then the EMI would be

R = 7.5% per annum / 12 months = 0.625% per month N = 20 years x 12 months = 240 months

E = [50,00,000 x 0.00625 x (1+0.00625)^240] / [(1+0.00625)^240-1] E = Rs. 40,034

Therefore, the EMI for a home loan of Rs. 50 lakhs for a tenure of 20 years at an interest rate of 7.5% per annum would be Rs. 40,034.

Note: The above calculations are indicative and may vary based on the specific terms and conditions of the loan, such as processing fees, prepayment charges, and other charges that may apply. It is always recommended to consult with IDBI Bank for an accurate estimate of the interest and EMI for a specific loan amount and tenure.

Why are IDBI Bank Home Loan Interest Rates the Best for Customers?

IDBI Bank is a well-known public sector bank in India that offers various financial products and services, including home loans. IDBI Bank's home loan interest rates are considered some of the best in the market, and there are several reasons why this is the case-

  • Competitive interest rates: IDBI Bank offers highly competitive home loan rates that are lower than many other banks. This is one of the primary reasons why customers prefer IDBI Bank for their home loan needs.
  • Flexible repayment options: IDBI Bank offers flexible repayment options, including longer repayment tenures of up to 30 years, which can help borrowers manage their EMIs more effectively.
  • Easy application process: IDBI Bank has a hassle-free home loan application process with minimal documentation requirements. This makes it easier for customers to apply for a home loan with IDBI Bank interest rates and get approval quickly.
  • Special schemes: IDBI Bank also offers special schemes and discounts for women borrowers and customers with good credit scores, which can help them save on interest costs.
  • Customer service: IDBI Bank has a strong customer service team dedicated to helping customers with their queries and concerns, ensuring a smooth and hassle-free borrowing experience.

Overall, IDBI Bank's home loan interest rates are highly competitive. The bank offers several features and benefits that make it an attractive choice for customers looking to buy a home.

Factors that affect IDBI Bank Home Loan Interest Rate and EMI

Several factors can affect home loan interest rates IDBI Bank and EMI, including

  • Credit Score: The applicant's credit score is one of the most critical factors affecting the interest rate and EMI. The higher the credit score, the lower the interest rate and EMI.
  • Loan Amount: The loan amount also significantly determines the interest rate and EMI. Generally, a higher loan amount will attract a higher interest rate and EMI.
  • Loan Tenure: The loan tenure or the repayment period is another factor that affects the interest rate and EMI. A more extended repayment period may lead to a lower EMI, but the interest paid over the entire tenure will be higher.
  • Income: The applicant's income is also considered while determining the interest rate and EMI. A higher income can lead to a lower interest rate and EMI.
  • Property Value: The value of the financed property also affects the interest rate and EMI. If the property value is high, the interest rate and EMI will be higher.
  • Type of Interest Rate: The type of interest rate chosen by the applicant can also affect the EMI. Fixed interest rates have a higher EMI compared to floating interest rates.
  • Loan to Value Ratio (LTV): LTV ratio is the percentage of the property value financed by the bank. A higher LTV ratio can lead to a higher interest rate and EMI.
  • Market conditions: Interest rates and EMI can also be affected by market conditions, including inflation, RBI policies, and economic conditions.

Frequently Asked Questions (FAQs)

What's the interest rate for an IDBI Bank home loan?

The interest rate for IDBI Bank Home Loan varies depending on various factors such as the loan amount, the borrower’s credit score, employment history, and other eligibility criteria. As of February 2023, the interest rates for IDBI Bank Home Loan start at 6.75% p.a. However, it’s important to note that interest rates are subject to change at the bank’s discretion. It’s recommended to check with the bank or visit their website for the most current and accurate information on their home loan IDBI Bank interest rates.

What is the current interest rate on an IDBI Bank home loan?

As of February 2023, IDBI Bank’s current interest rate starts from 6.75% p.a.

Does IDBI Bank provide a 90% home loan?

Yes, IDBI Bank provides up to 90% of the total cost of the property as a home loan. This means that customers can avail of a home loan of up to 90% of the cost of the property they wish to purchase, subject to certain terms and conditions. It is important to note that the eligibility for a 90% home loan from IDBI Bank depends on various factors, such as the borrower’s credit score, income, age, and the property’s value. Additionally, the bank may require the borrower to provide collateral or a guarantor to secure the loan.

What is the EMI for 30 lakhs home loan for 20 years?

The EMI (Equated Monthly Installment) is the fixed amount of money a borrower must pay monthly to repay a loan over a specified period. For a home loan of 30 lakhs with a tenure of 20 years and an interest rate of 8.5% per annum, the EMI would be approximately Rs. 26,842. This means that the borrower will need to pay Rs. 26,842 every month for 20 years to fully repay the loan and interest. The EMI amount depends on the loan amount, interest rate, and loan tenure.

How can I reduce my IDBI Bank home loan interest rate?

Firstly, you can try negotiating with the bank for a lower rate based on your credit score and repayment history. You can also consider switching to the MCLR (Marginal Cost of Funds based Lending Rate) system, which may offer lower interest rates than the base rate system. Another option is to make regular pre-payments towards your loan, which can reduce the principal amount and thus lower the interest charged. Finally, you can also consider refinancing your loan with another bank or lender who offers a lower interest rate. However, it’s important to carefully evaluate each option’s costs and benefits before deciding.

What is the average interest rate for a home loan in IDBI Bank?

The average interest rate for a home loan in IDBI Bank depends on several factors, including the loan amount, loan tenure, borrower’s credit score, employment history, and other eligibility criteria. As of February 2023, the interest rates for IDBI Bank Home Loan start at 6.75% p.a. However, a borrower’s interest rate may vary based on their circumstances.

Urban Money