About IDBI Bank

IDBI Bank traces its roots to 1964 when the Government of India set up a Developmental Financial Institution (DFI) and named it Industrial Development Bank of India. This entity continued to function as a DFI until 2004 when it got transformed into a bank. It also resulted in a change in the name from IDBI to IDBI Ltd.

United Western Bank, a private sector bank merged into IDBI Ltd with effect from October 3, 2006. The bank also changed its name from IDBI Ltd to IDBI Bank Ltd from May 7, 2008.

A series of mergers followed with its subsidiary units, IDBI Home Finance Ltd and IDBI Gilts merging into IDBI Bank Ltd. It was a Government-owned bank until January 21, 2019, when LIC of India acquired a 51% stake in the bank to recategorise it as a private sector bank.

Today IDBI Bank has got branches in almost all the top cities in India. It offers a bouquet of deposit and loan products, one of which is the home loan.

About IDBI Bank Home Loan

IDBI Bank offers a variety of home loans in a single basket, IDBI Bank Home Loan. It caters to almost every home loan requirement of its clientele. The bank targets an extensive clientele comprising of resident and non-resident Indians. Apart from these home loan products, IDBI Bank offers a unique loan product, IDBI Neev for acquiring a residential plot of land. IDBI Bank is also one of the leading lending institutions financing first-time homebuyers under the Pradhan Mantri Awas Yojana.

The salient features of IDBI Bank Home Loan are as follows:

  • Offers home loan solutions to meet all the housing requirements of every section of society
  • Attractive interest rates that compete with the best the industry has to offer
  • Both floating and fixed rates of interest available to customers
  • Facility to apply for a home loan online
  • Transparent pricing and affordable fees make it one of the most popular products in the market today
  • Simplified documentation procedures
  • Easy repayment options
  • Relaxed eligibility norms
  • Credit Linked Subsidy Scheme for its PMAY borrowers

IDBI Bank Home Loan - At a Glance

Loan Product

Ideal for

Loan amount


Maximum loan tenure

IDBI Home Loan

Comprehensive home loan product to cater to every housing requirement

Need-based funding

8.25% to 9%

Up to 30 years


Unique scheme for financing purchase of residential plots

Depends on the value of the plot and repayment capacity

8.95% to 9.60%

Up to 30 years

IDBI Home Loan under PMAY

Meet the housing requirements of first-time homebuyers under PMAY

Depends on a case to case basis

8.25% to 8.80%

Up to 30 years

IDBI Home Loans - How to Apply?

  • Access the IDBI Bank official website to find out the branch office nearest to your location. Visit the branch and apply for the home loan personally.
  • The same webpage provides you with an option to find out the phone number of the nearest Retail Assets Centre of the bank. Book an appointment with the local IDBI bank official and complete the loan application formalities.
  • IDBI Bank provides the facility of applying for a home loan online. Click on the Apply Online option for proceeding with the online application. The bank asks for your details if you do not have any banking relationship with it. Provide these details and apply online. An official from the nearest Retail Assets Centre will contact you to collect more information and proceed with the appraisal and processing of the home loan.

IDBI Bank Home Loan - Details

IDBI Home Loans - A Comprehensive Home Loan Product


  • Purchase new/resale house or flat
  • Acquire a plot of residential land intending to build a house on it at a later stage
  • Construction of your dream home on property already acquired by the applicant
  • Transfer of home loan balances from other banks and housing finance companies with or without a top-up facility
  • Existing borrowers can avail top-up facility subject to the satisfaction of specific conditions
  • Avail financial assistance for booking your house/flat with Housing Development Boards and other Government bodies or reputed builders
  • Funding for home improvement or extending your existing home

Target Clientele

  • Salaried individuals - both resident Indians and non-resident Indians
  • Self-Employed Professionals
  • Self-Employed Non-professionals

Age Requirements





22 years

25 years


70 years or the retirement age whichever is earlier

65 years

Maximum Loan Amount

Loan Amount

Loan-to-Value Ratio

Up to 30 Lakhs

90% of the realisable market value of the property or document cost (whichever is less)

More than 30 Lakhs < = 75 Lakhs

80% of the market price of the property or the document value (whichever is less)

Above 75 Lakhs

75% of the market cost of the property or the document price (whichever is lower)

Maximum loan repayment tenure

  • Salaried individuals - up to 30 years
  • Self-employed persons - up to 20 years

Balance Takeover features

  • Minimum repayment track record is six months
  • Additional funding by way of top up is available
  • The top up amount can extend up to 100% of the original HL sanction subject to the satisfaction of LTV norms

Rate of Interest

8.25% to 9.60%

Processing Fee

Up to 5,000 plus taxes

Repayment Options

  • Step-up repayment
  • Step-down repayment
  • Tranche Based EMI



To finance the acquisition of a residential plot of land intending to construct your dream home subsequently


Same as that of home loans


Similar eligibility norms that apply to home loans

Amount of Loan

  • Need-based funding
  • Depends on the cost of the land, repaying capacity, and LTV ratio

Rate of interest

8.95% to 9.60%

Repayment Tenure

Same as applicable to home loans

Processing Fee

Up to 5,000 plus taxes

IDBI Suvidha Home Loans - Loans Under Pradhan Mantri Awas Yojana


Finance the needs of first-time homebuyers under the Pradhan Mantri Awas Yojana


All individuals who do not have a house in their names as well as in their family members' names


  • The applicant and each family member should not have any home in their names anywhere in India.
  • They should qualify under the income criteria
  • The property should strictly adhere to the area restrictions as envisaged in the scheme.
  • The beneficiaries should not have received any Government grant connected to housing purposes in the past.
  • The property should be located in one of the 4041 statutory towns as detailed by the National Housing Bank.

Income Criteria

The aggregate family income should not be more than

  • 3 Lakhs per annum - Economically Weaker Section (EWS)
  • 6 Lakhs per annum - Low-Income Group (LIG)

Maximum Loan


Depends on the repayment capacity and value of the property

However, the subsidy will be available for the first 6 Lakhs alone. Any loan amount above 6 Lakhs is an unsubsidised portion.

Repayment Tenure

  • Salaried - 30 years and self-employed - 20 years
  • However, the computation of interest subsidy is restricted to loan tenure of 15 years


Upfront Interest subsidy available under CLSS

Subsidy Eligibility Criteria

  • The maximum loan amount eligible for calculation of the grant is 6 Lakhs.
  • The period for interest subsidy calculation is 15 years or the actual tenure whichever is less.
  • The subsidy is calculated at a fixed rate of 6.50% based on the computation of NPV at a discounted value of 9%
  • It is an upfront interest subsidy that is credited to the home loan account immediately. It works as a prepayment of the home loan. The borrower can reduce the EMI accordingly.
  • The subsidy is a once-in-a-lifetime offer. On transferring the balances to another bank, the borrower is not eligible for any further interest subvention.

IDBI Bank Home Loan - Documents Required

Home loan applicants should submit the following documents along with the loan application form.

Salaried Customers

  • Passport-sized photo
  • Identity proof documents
  • Proof of residence
  • Payslips for the last three months
  • ITR/Form 16
  • Six months bank account statement evidencing credit of salary
  • A cheque for the processing fee

Self-Employed Professionals

  • Passport-sized photo
  • ID proof and residence proof papers
  • Educational Qualification degree
  • Proof of the existence of business
  • ITR and financial for the last three years
  • Bank statement for the previous six months
  • A cheque for the processing fee

Self-Employed Non-professionals

  • Application form and photograph
  • Proof of residence along with the necessary ID proof
  • Business Profile
  • Proof of business existence
  • ITR and financials for a minimum of three years
  • Six months statement of account of the business and personal accounts
  • Processing fee cheque

Declarations in the Case of PMAY Beneficiaries

  • Self-declaration regarding annual household income
  • Self-declaration stating that no member of the family has received any financial support from the Government under any of its schemes
  • Self-declaration that no member of the family owns a house anywhere in India and that they are eligible to receive PMAY subsidy

IDBI Bank Home Loan - Interest Rates

IDBI Bank offers fixed as well as floating rates of interest. The floating rate of interest links to the Repo Linked Lending Rate (RLLR) of the bank. The present RLLR is 7.80% w.e.f April 12, 2020.

Floating Rate Loans

Plain Vanilla Home Loan


Rate of Interest - Spread

Rate of Interest - Actual

Salaried employee

RLLR to RLLR + 0.35

8.25% to 8.60%

Self-employed persons

RLLR + 0.10 to RLLR + 0.55

8.35% to 8.80%

Home Loan Top-Up

Housing Purposes

HLI + 0.20

8.45% to 9%

Non-Housing purposes

HLI + 0.30

8.55% to 9.10%



RLLR + 0.70 to RLLR + 1.05

8.95% to 9.30%

IDBI Neev 2.0

RLLR + 1 to RLLR + 1.35

9.25% to 9.60%

Fixed-Rate Loans

All Loan amounts

3-year tenure

For tenure > three years




Loan Amount

Rate of Interest

Up to 35 Lakhs


Above 35 Lakhs


Scheme for financing Rural and Semi-urban housing

All Loan Amounts


IDBI Bank Home Loan - Processing Fees and Other Important Pricing

Processing Fees on Home Loans and its variants

Product Category

Loan Amount Slabs

Processing fee

Home Loans and all its variants

Up to 30 Lakhs


Above 30 Lakhs < = 75 Lakhs


More than 75 Lakhs


Promotional offer on Inward Balance Transfer and PMAY loans

Irrespective of amount


Foreclosure Charges

Floating Rate of Interest - Home Loans

Home Loans sanctioned to individuals


Home Loans approved to non-individuals

  • Loans approved after January 28, 2015 - 2% of the foreclosure amount
  • Loans before January 28, 2015 - As per sanction letter terms

Fixed-Rate of Interest - Home Loans

 If repaid from own funds

Within six months from the disbursement

  • 2% of the foreclosure amount for loans sanctioned after January 28, 2015
  • As per sanction letter terms for loans existing before January 28, 2015

After six months from the disbursement

No charges

In the case of Balance transfer

  • Loans after January 28, 2015 - 2%
  • Loans before January 28, 2015 - As per terms of sanction

IDBI Bank Home Loan Non-housing Loans - At a Glance

Loan Product

Ideal for

Loan amount


Maximum loan tenure

Mortgage Loan

Business and personal needs

Up to 10 Crores

10.05% to 10.65%

15 years

Loan against Property - OD Ac

Business and individual requirements

Up to 10 Crores

10.05% to 10.65%

Reviewed every 24 months

Loan against Rent Receivables

Business purposes and other expenses

Up to 10 Crores

10.05% to 10.65%

Ten years

Loan against property - Interest Saver

Loan for business needs and personal requirements linked to Current/savings account

Up to 10 Crores

10.05% to 10.65%

15 years

Reverse Mortgage

Senior citizen to get consistent monthly or lumpsum payments

Up to 2 Crores

10.05% to 10.65%

20 years

Loans for purchase of commercial property

Purchase of shop or office complexes

Up to 5 Crores

10.80% to 10.90%

Ten years


What is the Step-up repayment option?

Young professionals and salaried employees have a lower salary in the initial stages of their career. Hence, their home loan eligibility is also less. However, their salary structure could improve over the years. Persons employed in Government concerns, PSUs, and large corporate entities can avail the benefit of step-up repayment option. The EMI will be the least in the initial years. It will increase gradually as the salary and repaying capacity of the borrower improves.

How does the concept of the Step-down repayment option work?

The Step-down repayment is the opposite of the step-up repayment concept. It is ideal for people who expect a reduction in income as the years go by. A prime example is that of a working professional who is due for retirement in about ten years. The person is at the highest levels of his/her earning prowess at present. On retirement, the income will reduce drastically. Therefore, the step-down repayment is ideal because the instalments in the early stages of the loan are more. It decreases as the years go by.

What is meant by a Tranche-based EMI option?

The Tranche-based EMI concept comes into force in the case of home loans disbursed in instalments. It usually happens when you avail a loan for the construction of the house or flat. The disbursement of the loan depends on the stages of development. The actual EMI starts after the stipulated moratorium period. Until that time, the borrower has the option to pay the EMI on the amounts disbursed by the bank. It is known as Tranche-based EMI concept.

What is meant by capitalisation of interest?

As an alternative to the tranche-based EMI, the borrower can exercise the option of accumulating the interest charged to the home loan account during the moratorium period. This concept is the capitalisation of interest. Under such circumstances, the interest gets added to the principal amount, whereby the EMI ends up becoming more significant at the time of its commencement.

What will happen if the property acquired through a loan under PMAY does not conform to area restrictions?

PMAY rules stipulate that EWS and LIG beneficiaries should invest in houses with the total carpet area not exceeding 30 and 60 square metres respectively. If they do so, they stand the chance of losing the upfront interest subsidy from the Government.

How does the Interest saver account concept work?

The Home Loan interest saver is an exciting concept as it enables borrowers to save on their interest component. The bank links their home loan account to the savings or current account. The interest is charged on the net balance after combining the two accounts. Thus, the borrower benefits in two ways.

  • Reduction in the interest component
  • Flexibility to use the savings account to meet their daily requirements.

Under such circumstances, the bank does not pay interest on the savings account as it usually does. However, it is beneficial for the borrower because it reduces the loan interest burden.

What are the benefits of a reverse mortgage loan?

Senior citizens over 60 years of age can benefit from the Reverse Mortgage Scheme. Such individuals not having any income to cater to their daily requirements can mortgage their residential property and opt for a steady stream of monthly income. The scheme has provisions to make lumpsum payments in the case of a medical emergency. It ensures that the senior citizen lives with honour.

When is the reverse mortgage loan payable?

The reverse mortgage loan becomes payable only under the following circumstances.

  • When the borrower intends to do so during his/her lifetime
  • When the borrower wishes to dispose of the property
  • On the death of the last surviving co-applicant
  • At the end of the loan period which is usually 20 years

How does the bank recover the money in a reverse mortgage scenario?

The bank can take physical possession of the property and bring it up for sale. However, before doing so, the bank offers the legal heirs of the deceased borrower an option to repay the loan. If they are not able to do so, the bank disposes the property and realises its dues. Any amount of excess funds left over after adjusting the bank dues passes on to the legal heirs.

Is constructing a house compulsory in the case of the IDBI Neev loan product?

Yes, the rules stipulate that the development of the plot should commence within a specified period. The borrower must undertake to start the construction of the building and complete it within the period stipulated by IDBI. Otherwise, the borrower stands to lose the interest rate benefit. In case the development does not happen as scheduled, the borrower is liable to pay interest at the commercial rate from Day 1.

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