Are IDBI Home Loan Interest Rates Attractive Amid Competition?

IDBI Bank has been constantly updating its products and services such as home loans to tap into the emerging needs of the customers. Recognizing the growing need of the Indian population to move into their own home from the rental accommodation, IDBI Bank has customized its home loan with respect to varied interest rates suiting people with different budgets. Even as the interest rate cycle has reversed with rates going up, IDBI Bank is still able to maintain a strong grip on the rate front. Let’s check out the varied IDBI Home Loan Interest Rates and several other details.

IDBI Home Loan Interest Rates

The interest rates vary according to the loan amount, the credit score of an applicant, besides credit exposure risk and other factors. Plus, the rates are benchmarked to the 6-month Marginal Cost of Lending Rate (MCLR), which currently stands at 8.65%. Loans up to ₹35 lakhs can be granted at 8.65%-8.70% per annum. On the other hand, loans above ₹35 lakhs and ranging up to ₹75 lakhs are offered at interest rates of 8.80%-8.85% p.a. Loans more than ₹75 lakhs can be financed at 8.90%-8.95% per annum.

Impact of IDBI Home Loan Interest Rates on Repayment

The impact of the rates shown above would reflect into the Equated Monthly Installments (EMIs) payable to IDBI Bank. The EMIs constitute a portion of both interest and principal to be repaid each month till the expiry of the original tenure. Salaried and self-employed professionals can be given a maximum of 30 years to repay the loan. On the other hand, self-employed non-professionals can pay the loan over a period of up to 20 years. The first half of the loan tenure would result in more interest repayment compared to the principal. The pattern reverses in the second half with more principal portion getting deducted more than interest.

How Can You Calculate IDBI Home Loan EMI?

Well, you must use the IDBI Home Loan EMI Calculator to compute the monthly installments. Go online to find the calculator that uses the loan amount, the rate of interest and tenure to compute the installments. Apart from calculating the EMI, the calculator also computes the interest to be paid over a course of a loan. The function of the calculator goes even beyond by showing the figures of interest and principal repayment likely on a year-to-year basis. You can even get to know the total outstanding balance at the end of every year.

Should You Check IDBI Home Loan Eligibility?

Yes, you should as it gives you an idea of the loan you are likely to receive. This will help you arrange the down payment needed to ensure the loan journey is smooth and without any bump. Loans up to 30 lakhs can be financed at up to 90% of the market value of the property. Loans between 30-75 lakhs are granted at up to 80% of the market value of the property. On the other hand, loans beyond 75 lakhs are offered at up to 75% of the market value of the property.