About IDBI Bank Personal Loan
IDBI Bank Personal Loans are loans offered to salaried, self-employed and pension receiving individuals and are aimed at fulfilling any personal needs that are not covered under traditional loan schemes offered by the bank. Be it any specific purchase, a sudden event or an arbitrary vacation, personal loans can help out. In short, personal loans from IDBI can aid in expenses that haven’t actually been planned in advance and can be useful in many situations. Personal loans from IDBI Bank are readily available through minimal documentation and low waiting periods.
IDBI Bank Personal Loan Interest Rates
IDBI Bank Personal Loan interest rates have varied within 2% in the past five years and the recent changes in the repo rate from RBI have resulted in a lowering of the interest rate recently. As of May 2015, the rates for personal loans from IDBI Bank could be as low as 11% or as high as 14% and are applicable for all categories of loan seekers. The interest rate could be anything within the specified range for different customers and categories of customers and will be at the sole discretion of the bank.
IDBI Personal Loan Interest Rates 2017
| Particulars |
Salaried |
Self-Employed |
| Interest rate |
Salaried/Pensioners maintaining salary/pension accounts with IDBI - 12.99% p.a.
Salaried customers not maintaining salary accounts with IDBI Bank - 13.49% p.a.
|
Self Employed Professionals having liability relationship with IDBI Bank - 13.49% p.a.
|
| Loan Amount |
For people with salary account at IDBI - Minimum: Rs.50,000 Maximum: Rs.10 lakh.
For Pensioners - Minimum: Rs.25,000 Maximum: Rs.5 lakh, with EMI not exceeding 50% of the last credited pension amount.
For salaried individual without salary account at IDBI - Minimum: Rs.50,000 Maximum: Rs.5 lakh
For employees of State and Central government promoted/sponsored institutions and the 3 armed forces - Minimum: Rs.50,000 Maximum: Rs.10 lakh.
|
Minimum: Rs.50,000
Maximum: Rs.5 lakh
|
| Loan Tenure |
Minimum : 12 Months
Maximum : 60 Months
|
Minimum : 12 Months
Maximum : 60 Months
|
| Lowest EMI |
- |
- |
| Processing Fee |
1% of the loan amount + applicable taxes. |
1% of the loan amount + applicable taxes. |
| Age |
For salaried:
Minimum age: 22 years.
Maximum age: 60 years.
For Pensioners: Maximum age limit is 75 years
|
Minimum age: 22 years
Maximum age: 60 years
|
| Prepayment/Foreclosure  Charges |
After 6 months, no charge.
Before 6 months, at 2% of the outstanding loan amount.
|
? After 6 months, no charge.
? Before 6 months, at 2% of the outstanding loan amount.
|
Calculating Interest on IDBI Personal Loan
A personal loan from IDBI Bank needs to be paid back in equated monthly installments (EMIs) and every EMI consists of a portion of the principal amount as well as the interest. As the personal loan moves towards maturity, the principal portion gradually increases and at the same time, the interest portion decreases.
The method for calculating the EMI on a personal loan can be mentioned as follows -
E = P*r*[(1+r)^n/((1+r)^n-1)]
Here E - Monthly EMI, r - rate of interest per month, n - number of years.
For a ballpark figure of Rs. 1,00,000 at an interest rate of 11% with a loan tenure of 1 year, the first EMIs for the first year would be Rs. 44,191 out of which the interest will account for Rs. 3,851.
For example, a personal loan of Rs. 10,00,000 for a period of 5 years at an interest rate of 11% from IDBI Bank would have the following scenario for the EMI to be paid (starting from August 2015) -
| Year |
Total Payment (INR) |
Balance (INR) |
Principal Portion (INR) |
Interest Portion (INR) |
| 2015 |
1,08,712 |
9,35,958 |
64,042 |
44,670 |
| 2016 |
2,60,909 |
7,69,792 |
1,66,166 |
94,743 |
| 2017 |
2,60,909 |
5,84,398 |
1,85,394 |
75,515 |
| 2018 |
2,60,909 |
3,77,550 |
2,06,848 |
54,061 |
| 2019 |
2,60,909 |
1,46,766 |
2,30,784 |
30,125 |
| 2020 |
1,52,197 |
0 |
1,46,766 |
5,431 |
The total of all EMIs per year doesn’t vary much, while the ratios of the principal amount and interest amount keep increasing and decreasing as the loan proceeds towards maturity
Factors affecting IDBI Personal Loan Interest Rates
IDBI personal loan interest rates can change for any individual who has been approved for availing a personal loan. The approval process might be dependent on several factors such as -
- Personal loan amount - Based on the amount of personal loan applied for, the interest rate might be changed beyond the advertised rate for specific customers or categories of customers. A higher loan amount could cause a lower or higher rate of interest
- Tenure of the personal loan - Based on the discretion of the bank, a longer tenure might have a lower or higher rate of interest
- Repayment capacity - IDBI Bank keeps a tab on the income and consequently the repayment capability of a customer. Depending on amount of cash inflows and transactions carried out by a customer, the bank might offer some leniency on personal loan interest rates
- Income - Income plays an important part in making sure if one is eligible for applying for the personal loan. Additionally, the bank may change the interest rate for a personal loan based on the income of a customer
- Assets - Presence of fixed and movable financial assets play a crucial loan in improving the financial picture of one’s life. Based on the same, IDBI Bank might provide a preferential rate of interest for personal loans
- Relationship with the bank - An existing customer of IDBI Bank is bound to get preference when applying for a personal loan and the bank might consider providing a better rate of interest to the customer. Additionally, overdraft types of personal loans from IDBI bank have a limit of five times the monthly net salary or pension for the customer
- CIBIL scores - Approval of a personal loan takes one’s credit history into account. So, the CIBIL score might also work in favour of getting a better interest rate from the bank
All the above factors notwithstanding, any change in the advertised interest rates is at the sole discretion of the bank.
How does the CIBIL Score affect Personal Interest Rates of IDBI Bank?
A personal loan is a great help, but also a liability at the same time. A bit of planning always helps and it especially comes in handy when dealing with CIBIL scores. Along with a credit history report, scores from CIBIL play a pivotal role in furthering the case of getting a personal loan approved from IDBI Bank. CIBIL scores range from 300 to 900 and a score above 700 is considered a good one. Scores above 750 might allow the bank to consider offering a better rate of interest to the customer. Else the rates might be higher than expected. Doing a check on the CIBIL score and fixing the same to an appreciable level might help in getting preferential interest rates.
Key Points regarding IDBI Bank Personal Loan Interest Rates
Availing a personal loan from IDBI Bank is easy for salaried individuals who meet the base minimum eligibility criteria, however, the following points should be borne in mind -
- The interest rates in IDBI Bank for personal loan are subject to the repo rate of RBI and may come down further, but not with an immediate effect
- The personal loan interest rates in IDBI Bank are fixed, not floating and are among the lowest rates available in the market
- Many personal loans from IDBI Bank don’t require a security or a collateral, addition of such factors may not have any impact on the interest rate
- On approaching IDBI Bank for a personal loan, the bank will already have a look at your credit score. Based on the same, the loan amounts might be vary, and there might changes in the interest rates as well
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