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    IDBI Bank Personal Loan Interest Rates

    Bank Name
    Interest Rate Range
    Processing Fee Range
    Loan Amount
    Tenure Range
    13.20% Floating
    1% + S.T. One time fee
    50,000 - 10L
    1-5 Years
    Response Time Within 30 minutes
    What you'll love
    Think about
    Fees & Charges
    Eligibility Criteria

    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.

    Interest Rate (for all applicable customers) 11%-14% (depends on the bank’s discretion and other factors)
    Loan Types IDBI Personal Loan - The classic personal loan scheme for salaried and self-employed individuals
      IDBI Salary Account with Overdraft Facility - Personal loans aimed at salaried individuals with accounts in IDBI Bank
      IDBI Pensioners Overdraft Facility - Personal loans for pensioners having accounts in IDBI Bank
    Loan Amount Minimum - Rs. 50,000 Maximum - Rs. 10,00,000 under the available options
    Loan Tenure 12 months to 60 months
    Lowest EMI per lakh Rs. 2174
    Prepayment Charges Not applicable if done post six months of the loan initiation. Within 6 months, it is 2% of outstanding loan amount
    Base Rate (as of May 2015) 10%

    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 -

    1. 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
    2. Tenure of the personal loan - Based on the discretion of the bank, a longer tenure might have a lower or higher rate of interest
    3. 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
    4. 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
    5. 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
    6. 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
    7. 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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