IDBI Bank provides several options for home loans including loans for house construction, purchase of ready homes or plots, renovation, and balance transfers. Eligible applicants include salaried and self-employed individuals as well as NRIs. IDBI offers maximum funding, attractive interest rates, and personalized service. Additional products linked to home loans are also available.

1. IDBI GIVES NEW
WAYS FOR
FUNDING YOUR
HOME

2. Raj Kumar Bansal, executive director, IDBI Bank Ltd., shares withVijay Pandya the
initiatives being taken to promote housing.

3. What financial assistance does IDBI Bank provide for
housing?
One can avail loan from IDBI Bank, for constructing a house, purchase of ready
built house/ flat or re-sale flat, balance transfers, purchase of plot and
construction, renovation/ extension of houses/ flats, loan against residential and
commercial properties purchased.

4. Who can apply for home loan?
We offer loans to salaried individuals, self employed professionals or
businessmen and NRIs.

5. What are the main advantages of IDBI Bank home loans?
•Maximum funding as permissible under RBI guidelines
•Flexibility of choosing between Floating or Fixed interest rate
•Attractive rate of interest
•Interest charging on daily reducing balance
•Personalized doorstep service
•Simple documentation
•Legal and technical assistance
•Balance transfer facility
•Reassessment and adjustment of applicant’s loan eligibility in case of change of
income and residence status
•Low monthly outgo: Equated Monthly Instalment (EMI) is lower because interest is
calculated on a daily reducing balance.

6. •Pre approved properties:The bank has a system of pre approving the properties
via Advance Payment Facility (APF) & Advance Disbursement Facility (ADF)
available thereby offering faster approvals in select cases.
•Balance transfer: Home loan product also has the option of balance transfer of
existing loans from other banks or housing financial companies, as well as top-up
options.
•Flexible repayment plan: Loan repayment options are structured to suit individual
requirements. For instance, one can part pay or foreclose the loan account under
floating interest rate scheme without penal charges.

7. Does the Bank have any flexible repayment home loan
product?
Home loan Interest Saver product provides the facility of linking home loan
account with the Easy Access Current Account (RCEAZ). The interest liability of
the borrower on home loan comes down if the operative current account has
surplus balance. Borrower is allowed to withdraw or deposit funds from his
operative current account as and when required. Interest on Home loan will be
calculated on outstanding loan minus balance in the current account based on
daily basis.

8. What are other linked products?
We offer Loan Against Property, Loan Against Rent Receivables, Reverse
Mortgage Loan, Loan Against Property Overdraft, Loan Against Commercial
Property Purchase and Turnover Based Loan (Home loan and Mortgage Loan)
for self employed professionals and businessmen. The Bank recently reduced
rate of interest on Loan against commercial property purchase in line with
market rates.

9. What is loan repayment tenure?
Tenure of a home loan can be up to 20 years for a resident individual (salaried
and self employed professional) whereas for self employed (resident Indian) and
NRIs (salaried) maximum tenure is 15 years.

10. What is maximum loan amount?
One can get a loan of minimum Rs2 lakh to maximum Rs5 crore. Normally, loan
can be sanctioned for a maximum of 80% of the property value. However, loans
up to 20 lakh would be eligible for 90% of property value. Quantum of loan is
determined based on the repayment capacity of the customer.

11. Does the bank provide insurance cover to borrowers?
The bank provides insurance premium funding for life insurance/home insurance
for its borrowers.

12. What are documents required?
Following documents required for calculating loan eligibility:
Salaried Individuals: 6 months Bank Statement and 3 month Salary Slips & Form
16.The minimum income of the applicant should be Rs15000 per month.
Self-Employed Professional and Non Professional category: Last 6 month bank
statement of savings account and business bank account. Last 2 years income
tax returns, balance sheet, profit & loss account.

13. What is the security of the loan?
Primary Security for the loan is mortgage of the property to be financed,
normally by way of deposit of the title deeds. The collateral security as may be
necessary in some cases depending on the profile of the customer.

14. What are tax benefits available?
A maximum deduction of Rs1,50,000 on your income towards interest paid on
your home loans u/s 24 is available. Further a maximum deduction of Rs1,00,000
on the principal repaid u/s 80 C can be claimed by the applicants.

15. What about foreclosure or prepayment?
Prepayment/ foreclosure charges are not payable on floating interest rate loans.
However, prepayment fees of 2% on principal outstanding will be levied in case
of fixed rate loans and plot loans.

16. Who can be a co-applicant?
The applicant can include spouse/ parents/ children as a co-applicant for the
home loan and whose income can be included for calculating the eligible loan
amount. Further, in case there are any other co-owners, they also need to be
co-applicants.

17. How is loan repayment done?
The loan amount is repayable over the tenure of the loan by way of Equated
Monthly Instalments. The EMI starts after the full disbursement of the loan. The
customer pays simple interest on the part disbursed amount till final
disbursement. To further the cause of green initiative, the repayment is to be
made only through Standing Instruction (SI) or Electronic clearing System
(ECS).

18. How does floating rate change?
The floating rate of interest of home loans is linked to Base Rate (BR) of the
Bank. BR is the benchmark rate fixed by the Bank, after taking into
consideration of various components of cost of funds and margin. The same is
subject to change from time to time as per the changes in monetary conditions.

19. What of technological changes?
Soon the bank would be introducing online loan application for home loans
through our website. Existing clientele has the facility to download Retail Loan
Statements and Interest Certificates through our website. SMS alerts intimating
the customers their due date for EMI payment amount due as also
acknowledgment of payment made has already been introduced. As per the
Green Initiative of Government of India, bank has initiated steps to encourage
payment through ECS mode of payment.

20. What is the current network of the bank in terms of home
loans?
In addition to the network of 985 branches, the bank has 72 Retail Asset
Centres dedicated to handle all retail loans.

21. http://www.youtube.com/idbibank
http://www.facebook.com/idbibank
http://www.twitter.com/idbi_bank
https://plus.google.com/+IDBIBank
https://in.linkedin.com/company/idbi-bank
ThankYou
Source: http://www.dnaindia.com/money/report-idbi-gives-news-ways-
for-funding-your-home-1720599