IDBI BANK

Features
1. Tenor of a home loan can be up to 25 years for a resident individual whereas for
NRIs the maximum tenure is 15 years subject to maximum age of 60 years at
maturity.
2. Loan can be applied for a maximum of 90% of the property value subject to credit
discretion.
3. Security for the loan is a first mortgage of the property to be financed, normally
by way of deposit of the title deeds or such collateral security as may be
necessary.
4. Title to the property should be clear and free from encumbrance, i.e., without any
pending legal litigation adversely affecting the ownership of the property.

5. 5. Other parameters considered include an account of your age, income, number

of dependents, financial stability and co-applicant’s income.

Tax Benefits
As per the current finance bill you can get:

• A maximum deduction of Rs. 1,50,000 on your income towards interest paid on

your home loans u/s 24
• A maximum deduction of Rs. 1,00,000 on the principal repaid u/s 80 CCE

The above benefits are available subject to you fulfilling certain conditions, for which
you should refer the IT Act 1961.

Eligibility
Following are eligible to apply for an IDBI Home Loan:

• Salaried individuals
• Self employed professionals/businessmen
• NRIs

You can include your spouse/parents/children as co-applicant if you require higher

eligibility subject to maximum of three applicants.

Home Loan With Life Insurance

For most of us, buying a house is an important milestone in our lives. Although, it can be
a tremendously satisfying experience, it can also bring about a lot of concerns. “Shall I be
able to repay the loan? Shall I be able to manage my finances? And above all, “If
something happens to me, how will my family repay the loan?"

We at IDBI, understand your concerns. Our Home Loans are now accompanied by a
specially-designed insurance cover. So even if calamity strikes, your family needn’t
worry about the loan.
Repayment
You normally repay the loan through Equated Monthly Installments (EMIs) comprising
both principal and interest. If the final disbursement is however still pending, you pay
interest on the portion of the loan disbursed before the EMI commences.

We could also structure your loan repayment to suit your convenience. For instance, the
installments could be lower in the initial years and could gradually increase over a period
or vice versa.

The maximum possible tenure for a Resident Indian is 25 years if employed and 15 years
if self employed. While the same for an NRI is 15 years.
Pre payment/ Foreclosure

In the event of your opting to pre-pay the home loan with us, a nominal fee of 2% is
payable in case, it is transferred to another bank or housing finance company. However,
no charges are applicable if you prepay from your own sources after 6 months of
commencement of EMI.

Home Loan Interest Rates

BENCHMARK PRIME LENDING RATE
13.75%
(BPLR)

Home Loans (Floating)

Loan Tenure ROI
1-25 years (BPLR-2.75) 11.00 %

Home Loans (Fixed )

Options ROI
Fixed for 3 years 12.00 %
Fixed for 5 years 12.25 %

Mortgage Loan (Floating)

Options ROI
Loan Against Property (Residential / Commercial)
(BPLR) 13.75 %
(LAP)
Loan Against Property Overdraft (LAP / OD) (BPLR+0.25) 14.00 %
Loan Against Rent Receivables (LARR) (BPLR) 13.75 %
Reverse Mortgage Loan (Floating)
Type ROI
Fixed (for 5 years ) (Bplr-1.25%) 12.50%

Qualifying Loan Amount (Rs.1.00 lac)

Tenor (years) 10 11 12 13 14 15 16 17 18 19 20
Monthly Installment (Rs.) 418 352 299 255 219 189 163 142 123 107 93
w.e.f July 1, 2008.
The above rates are indicative in nature and may vary depending upon category of
customer and builder schemes.

Home Loans
General FAQs
Q1 For what purpose can I avail a home loan?
You can take a loan for constructing a house, purchase of a ready built house / flat
or a flat in resale, the takeover of existing loans from approved banks / housing
finance companies, the purchase of a plot of land, for renovation of the house and
extension of the house.

Q2 What are the borrower categories who can avail of the loan?
We offer loans to salaried individuals, self-employed professionals or businessmen
and for NRI individuals.

Q3 Who can be a co-applicant for the loan?

You can include your spouse/parents/children as a co-applicant for the Home Loan
and we shall include his / her income to enhance your loan amount. Further, in case
there are any other co-owners, they also need to be co-applicants.

Q4 What is the maximum period in which I can repay the loan?

You can repay the loan over a maximum period of 25 years in case you are salaried
and 15 years in case you are self employed. For NRIs we give loans up to 15 years.
Repayment will not ordinarily be extended beyond your age of retirement (if you are
employed) or on your reaching 60 years of age, whichever is earlier. However, we
will make every effort to determine the repayment period to suit your convenience.

Q5 What is the security to be provided?

Security for the loan is a first mortgage of the property to be financed, normally by
way of deposit of title deeds / or such collateral security as may be necessary. Please
 do ensure that the title to the property is clear, marketable and free from
encumbrance. To elaborate, there should not be any existing mortgage, loan or
litigation, which is likely to affect the title to the property adversely.

Q6 Can I repay the loan ahead of schedule?

Yes. You can repay the loan ahead of schedule, however if the loan is transferred to
another bank or HFC, a nominal fee @ 2% of principal outstanding is payable.

Q7 Are the Bank policies subject to change?

Yes. These policies will be reviewed periodically.

Q8 How is my loan reassessed if there is a change in status from Non-Resident

Indian to Resident Indian?
The repayment capacity of the applicant(s) based on resident status is reassessed and
a revised repayment schedule worked out. The new rate of interest will be as per the
currently applicable rate on Resident Indian loans (for that specific loan product).
This revised rate of interest would be applicable on the outstanding balance being
converted. A letter is given to the customer confirming the change of status.