IDBI Bank Personal Loan

Overview

Hey, come on let’s get rich. If you are looking for money then do not think too much. We are here to help you via Personal Loans. If you are a Salaried Employee with a net annual income of 1.80 Lacs then you can avail of the Personal Loan and move forward investing in other sources of income just like Mutual Funds, National Saving Certificate, and many more.

IDBI is equally essential that providing lower rates of interest on the loan and less processing fee as compared to YES Bank and Kotak Mahindra Bank. Thus, we conclude that repayment has its own priorities, situations, and conditions.

IDBI Bank is a good fit for you if?

If You’re a Salaried Employee & earning Rs. 1.80 Lacs per annum

IDBI Bank can be a good fit for you if you’re earning a net annual income of a minimum of Rs. 1.80 Lacs. However, IDBI Bank is a renowned trusted bank that provides impeccable service and any salaried person can move to this bank for more trust, confidence, and prosperity among the salaried and working professionals. The emergency chaos and obstacles in achieving success can be handled easily through personal loans.

The Employees can be classified into 3 categories

Govt. Employees get the preference from the IDBI bank. They can be chosen for special offers on account of achievements by the Bank. Also, the relaxation in policies occasionally on account of Big Festivals like Dussehra, Diwali, Holi, and Ganesh Chaturthi.

Corporate Employees

It is often said that the private sector has no stability in terms of ongoing jobs in any field/sector. The private sector involves a lot of effort and time to make the businesses run and tie-up with other private firms, consultants, companies to grow their business. The lack of funds makes it difficult for the employer to hire resources with skills that may take a while as knowledgeable and skilled professionals to acquire or adjust in the environment.

Self-Employed

Self Employment is a boon for those who want to freely flourish excluding the chaos to Report to anyone and to avoid the Hassle of doing suitable courses with expenditure on your pocket. Talking about self-employed business owners, they make plans to exercise their skills for an asset-building asset.

If You’re a Self-Employed Professional earning Rs. 3.60 Lacs per annum

Self Employed Professionals have the freedom to make as much money as they can with the help of Financers. A personal loan is the best way to make it easy for the borrower for doing any self-employment and any small business. Being a Self Employed Professional, IDBI Bank can be a good fit for your loan need, if the net annual turnover of your business is Rs. 3.60 Lacs or above.

If You’re a Self-Employed Non-Professional earning Rs. 5 Lacs per annum

Self Employment Non-Professional refers to a Passive income business owner who made a business run automatically by making it an asset. If you are a Self Employed Non-Professional, then IDBI Bank can be a good fit for your personal loan if your business has a net turnover of a minimum of Rs. 5 Lacs per annum. These kinds of Professionals are smart enough to create assets for themselves, family, and some group of trusted people they join hands with. Hence, the business work for them once they create an Asset Building Chain.

IDBI Bank Personal Loan at a glance

Annual Interest Rate10% – 14% per annum
Loan Term12 Months – 60 Months
Loan AmountRs. 25,000 – Rs. 10 Lacs
Time of FundingWithin 7 working days
Pre-Closure ChargesZero to 2% of the Outstanding Loan Amount

Why Choose IDBI Bank?

Foreclosure Can Be Made Anytime

Unlike most well-known banks/FIs such as HDFC Bank, YES Bank, and Kotak Mahindra Bank which doesn’t allow you to make prepayment until the first 12 EMIs are paid, IDBI Bank lets you make foreclosure against your personal loan anytime, even as early as within 6 Months of Disbursal. However, a small fee will be charged if you make foreclosure within the first 6 Months of disbursal. Foreclosure is beneficial for the people in those scenarios who make the bank stand in profits.

No Foreclosure Charges After 6 Months of Disbursal

If you make foreclosure after the full repayment of the first 6 EMIs, IDBI Bank doesn’t charge you any fee for foreclosure unlike competing banks/FIs such as Kotak Mahindra and YES Bank which charges a foreclosure fee as high as 4% of the principal outstanding amount if you make foreclosure within early stages of the loan. IDBI bank makes every effort to fit in the pocket of each individual who has the desire to set up a business at a glance.

Part-Payment Allowed

IDBI Bank also gives you the option to prepay your personal loan using a part-payment facility if you don’t have enough funds to make foreclosure against your loan as compared to HDFC Bank which doesn’t allow part-payment for self-employed professionals and non-professionals and Kotak Mahindra Bank which doesn’t offer part-payment facility at all.

Free Personal Accident Cover

IDBI Bank offers its loan borrowers a free protection plan in case of accidental death.

What to watch out for?

No Funds Availment within 12 Months of Part-Payment Date

In case you have made a part payment against your IDBI Personal Loan, then you cannot take any additional funds or avail partial disbursal of your loan within the 12 months from the date of part-payment. The part-payment allows the customer to avail of the facility while making repayment and the amount is divided into small Easy Monthly Installments.

Additional Funds Only After First 12 Months

It is always desired by the financer to get the repayment as early as possible i.e. within the given time to the borrower. They put some terms and conditions to restrict the overflow of money. In the case of IDBI Personal Loan, you can only avail of additional funds only if you have made full repayment of the first 12 months without any default. It could be an issue if you need some urgent funds and don’t want to take another loan.

Maximum Age Cap is 60 Years for Non-Pensioners

Unlike its competing banks like YES Bank, the maximum age of an applicant at the time of loan maturity should not be more than 60 years in any case either be salaried or self-employed. Whereas YES Bank allows maximum age of up to 65 years for self-employed.

Compare IDBI Bank Personal Loans to Other Banks

Bank NameIDBI BankYES BankKotak Mahindra Bank
APR10% – 14%10.75% – 15.90%10.99% – 24%
Loan Term12 Months  – 60 Months12 Months  – 60 Months12 Months  – 60 Months
Maximum Lending AmountRs. 25,000 – Rs. 10 LacsRs. 25 LacsRs. 15 Lacs
Processing FeeUp to 2.50% of the loan amountUp to 2.50% of the loan amount
Minimum Rs. 999.
Up to 2.50% of the loan amount
Time to FundingWithin 7 working daysWithin 24 hoursWithin 30 Minutes
Pre-Closure FeeZero to 2% of the Outstanding Loan AmountZero to 4% of the principal outstanding5% of the Principal Outstanding

When it comes to comparison, IDBI Bank shows out its featured services as against its competitors like YES Bank and Kotak Mahindra Bank. The comparison has a good difference like IDBI Bank offers 10% to 14% rate of interest annually as against YES Bank offers 10.75% to 15.90% and Kotak Mahindra Bank @ 10.99% to 24% rate of interest.

Talking about Loan Term, it is the same for all 3 banks. When we come to Maximum Lending Amount IDBI offers secured loans with a personal trust work relationship with the IDBI Bank as against YES Bank offering 25 Lacs and 15 Lacs by Kotak Mahindra.

The processing fee is equal in all three banks up to 2.50% max. IDBI Bank ensures all formalities accomplishment to avoid any hassle at a later stage with Time for funding/payment within 7 working days and YES Bank scores here with 24 hours processing and final payment. Kotak Mahindra offers in 30 minutes thus getting ahead of all three banks.

Pre-closure is the way to pay back your loan before the term assured is completed for the loan. IDBI makes it a direct mark in getting ahead with its competitors offering 0-2% fee for Outstanding loan Amounts.

IDBI Bank Personal Loan Eligibility Criteria

Minimum Age21 Years
Maximum Age 60 Years
Minimum Net Annual IncomeRs. 1.80 Lacs
  • The minimum age of a salaried applicant should be at least 21 years at the time of the loan. In the situation of Lack of funds, you can always move to Loans like Personal loans provided that you should be 21 yrs of age or more. Application and maximum 60 years at the time of loan maturity or the retirement age.
  • Salaried applicants should have a minimum net annual income of Rs. 1.80 Lacs. This condition is levied to check whether one should have the least money matching the requirement of the bank. IDBI makes it possible for all applicant customers to be eligible for loans.
  • The minimum age of an applicant either be professional or self-employed non-professional, should be at least 21 years at the time of loan application and a maximum of 60 years at the time of loan maturity.
  • Self-Employed Professional should have a minimum net annual income of Rs. 3.60 Lacs. Self-Employed Non-Professionals or Business Owners should have a minimum net annual income of Rs. 5 Lacs. The maximum age of a pensioner or family pensioner should be not more than 75 years at the time of loan maturity.

IDBI Bank Personal Loans Schemes

IDBI Bank Personal Loan for Salaried

Eligible applicant include Salaried Applicants drawing salary through IDBI Bank. Types of Salary Accounts and their credit.

Corporate Salary Account, and all permanent employees of government institutions including PSUs, MNCs, Reputed Pvt Ltd Companies with or without an existing relationship with IDBI Bank. A corporate Salary Account is an account with a ‘0’ Balance facility and no need of maintaining the minimum balance. You can operate the Account till the balance of ‘0’. That simply means you can open an account with a ‘0’ Balance and can do transactions through the Digital method.

The Customers are allowed to avail funds from min. Rs. 50,000/- to the max. Rs. 10 Lacs depending upon the requirements and preferences for scheduled tasks. The tenure can vary for the customer as per the bank norms and make it easier for the customer to move on accordingly. In this case, IDBI Bank allows the user to choose from different tenures like 12 months or 1 year to 60 months or 5 years. However, the public sector offers 15-20 yrs of tenure for small EMIs.

If the credit score of the applicant (drawing salary) is 801 points or above, then the interest rate of the applicant is 12%. In this case, IDBI Bank has a 12% rate of interest per annum for a corporate account. IDBI Bank allows the interest rate of 12.25% per annum if the credit score of the applicant  drawing salary in a Corporate Salary Account is 751 points to 800 points. For points between 700 points to 750 points the rate of interest changes to 13.25% per annum for the applicant having a Corporate Salary Account. The interest rate for the other salaried applicant (other than ones drawing salary through IDBI Bank Corporate Accounts) either has any existing relationship with the bank or not, starts from 12.25% per annum if the credit score of the applicant is 801 points or above.

The interest rate for other salaried applicants (other than ones drawing salary through IDBI Bank Corporate Accounts) either have any existing relationship with the bank or not, starts from 12.50% per annum if the credit score of the applicant is between 751 points to 800 points.

The interest rate for other salaried applicants (other than ones drawing salary through IDBI Bank Corporate Accounts) either have any existing relationship with the bank or not, starts from 13.50% per annum if the credit score of the applicant is between 700 points to 750 points.

IDBI Bank Personal Loan Self-Employed

Eligible self-employed applicants are the ones who have an asset or liability relationship with IDBI Bank. The wisdom lies in building an asset, thus Self Employment People are more interested in investing in sources of asset-building income. E.g. any individual can invest their money in mutual funds of different rates of interest and tenure.

An individual can select the tenure and minimum amount as per the norms laid by the Bank. Here, in this case, IDBI offers the tenure of 12 months or 1 year and 60 months or 5 years. Solutions to any upcoming problems are made by IDBI. Now, let’s talk about the points earned by any individual.

IDBI Bank offers tenure ranging from 12 months or 1 year to 60 months or 5 years. The need for a loan for any individual can Avail funds from min Rs. 50,000 to max Rs. 10 Lacs. The interest rate for self-employed applicants starts from 13% per annum if the credit score of the applicant is 801 points or above.

The interest rate for self-employed applicants starts from 13.50% per annum if the credit score of the applicant is between 751 points to 800 points. The interest rate for self-employed applicants starts from 14% per annum if the credit score of the applicant is between 700 points to 750 points. Eligible self-employed applicants are the ones who have an asset or liability relationship with IDBI Bank.

IDBI Bank Personal Loan for Pensioners

Eligible applicants include pensioners or family pensioners drawing salaries through IDBI Bank. Get tenure ranging from 12 months to 60 months. Avail funds from min Rs. 25,000 to max Rs. 5 Lacs. A third-party guarantee is mandatory for pensioners.

Interest rate for pensioners drawing pension through IDBI Bank Pension Account starts from 12% per annum if the credit score of the applicant is 801 points or above.

The interest rate for pensioners drawing pension through IDBI Bank Pension Account starts from 12.25% per annum if the credit score of the applicant is between 751 points to 800 points.

The interest rate for pensioners drawing pension through IDBI Bank Pension Account starts from 13.25% per annum if the credit score of the applicant is between 700 points to 750 points.

IDBI Bank Personal Loan Interest Rates

Personal LoanApplicable Interest Rate
IDBI Bank Personal Loan for Salaried12% – 13.50% per annum
IDBI Bank Personal Loan for Self-Employed Professionals / Non-Professionals13% – 14%per annum
IDBI Bank Personal Loan for Pensioners12% – 13.25% per annum

IDBI Bank Personal Loans Fees & Charges

Type of ChargesApplicable Charge
Processing ChargesUp to 2.50% of the loan amount
Min Rs. 1000 for Personal Loan
Min Rs. 250 for Personal Loan against Credit Card
Prepayment ChargesNil
For Foreclosure made after first 6 months of disbursal.

2% of the principal outstanding amount
For Foreclosure made within the first 6 months of disbursal.
Part-paymentNil
For Part-payment made after the first 6 months of disbursal.

2% of the principal outstanding amount
For Part-payment made within the first 6 months of disbursal.=
Penal Interest24% per annum (2% per month) on the overdue amount
EMI Bounce ChargesRs. 300 per instance

Up to 2.50% of the loan amount with min Rs. 1,000 for a Personal loan is required. Also, if you opt for Credit Card then an amount of Rs. 250 will be charged for Personal Loan. Foreclosure charges are Nil in this case if you go for it after 6 months of disbursal. Also, 2% of the principal outstanding amount for Foreclosure was made within the first 6 months of disbursal. It is allowed and accessible anytime through the web. Allowed anytime.

These charges are NIL if the customer goes for part-payment with no extra fees and penalties if the payment is made after 6 months of disbursal. Only 2% of the principal amount for Part-payment is made within the first 6 months of disbursal. It is allowed anytime as you can go to the website or a web page provided and check the details. You stand benefitted in all three conditions.

FAQs

Do I have to provide any security to avail personal loan from IDBI Bank?

Security for a personal loan isn’t mandatory, except in the case of personal loans for pensioners where a third-party guarantee is necessary.

When can I pre-close my IDBI Personal Loan and what will be the applicable charges?

Pre-closure of the loan can be done either fully or partially. Prepayment / Part-prepayment of the loan can be done anytime; However, a pre-closure fee of 2% will be charged if pre-closure is done within 6 months from the date of loan disbursement. Whereas, no fee would be charged to the borrower if pre-closure is done after 6 months from the date of loan disbursement.

If the borrower chooses to pre-close the loan account through Part-prepayment, then no further personal loan will be sanctioned to the borrower for 12 months from the date of making the Part-prepayment.

What are the benefits of IDBI Personal Loan?

The borrowers will be covered under Free Personal Accidental Insurance Cover.

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