|IDBI Personal Loan Interest Rates 2018|
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|
|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.|
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)|
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
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 -
All the above factors notwithstanding, any change in the advertised interest rates is at the sole discretion of the 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.
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 -
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