Highlights
- Get ready for an international trip and apply for a personal loan at IDBI Bank.
- IDBI Bank personal loan rates would bring in the lowest EMI.
When you think of taking out a loan, you expect it to fit your budget, right? IDBI Bank is among those financial institutions that have designed their personal loans to meet customer needs without compromising on expectations. With IDBI, you can obtain a maximum loan of INR 5 lakhs, which not only allows for an international trip but might also enable you to save some for next time. In this article, we’ve summarized the key details of IDBI Bank's personal loans.
IDBI Bank Personal Loan Rate Details 2024
IDBI Bank provides personal loans starting at 11.00% per annum, with loan amounts up to Rs 5 lakh and repayment terms of up to 5 years. The bank also offers a part-prepayment option to its personal loan customers. In addition to their current personal loans, applicants obtaining IDBI Bank Personal Loans can apply for top-up loans.
| Particulars | Details |
|---|---|
| Interest Rates | 11.00% - 15.50% |
| Loan Amount | INR 25,000 - INR 5 Lakh |
| Repayment | 60 months |
| Prepayment/Foreclosure Charges | 2% of the outstanding balance |
Advantages of IDBI Bank Personal Loan
Borrowers find IDBI Bank's Personal Loan to be a desirable option due to its numerous benefits. The main advantages are as follows:
- No Collateral Required - The personal loan offered by IDBI Bank is an unsecured loan, which means you can obtain it without pledging any security or assets, such as real estate or gold. This opens it up to a larger group of clients, some of whom might not have substantial assets.
- 100% Digital Journey - Applying for a personal loan with IDBI Bank can be done online in its entirety. This includes applying for a loan from the convenience of your home, uploading the required paperwork, and even receiving the loan approval.
- Simple and Easy Process - The application process is made simpler by IDBI Bank's modest documentation requirements. Customers will find it simpler and quicker to have their loans approved as a result.
Factors Affecting IDBI Bank Personal Loan Interest Rate
Here are the factors that might affect your personal loan application interest rate -
- Credit Score - The interest rate is determined in part by your credit score. Better creditworthiness is indicated by a higher credit score, and this might lead to a lower interest rate. On the other hand, higher loan rates could result from a lower credit score.
- Loan Amount - The interest rate may vary depending on the amount you want to borrow. Higher loan quantities typically result in lower interest rates, whereas smaller loan amounts may have higher rates because of the bank's increased relative risk.
- Loan Tenure - Another factor is how long the loan is for. Because the bank's risk is distributed over a shorter time, shorter loan tenures may have lower interest rates. Rates may be increased for longer tenure.
- Special Offers and Schemes - Promotional interest rates may be available from IDBI Bank for particular client segments or at particular seasons of the year. The usual rates may be higher than these special rates.
Calculating EMIs on IDBI Bank of Personal Loans at Different Interest Rates
To quickly and simply calculate your EMIs for a personal loan from the IDBI Bank of India, use the Wishfin online IDBI Bank Personal Loan EMI Calculator.
You can simply put the following details -
- Loan Amount
- Tenure
- Interest Rate
The table below displays the equal monthly payments (EMIs) for a personal loan of ₹5,00,000 with interest rates ranging from 11.00% to 15.50% annually for terms of one to five years. You can change additional details, such as the loan amount, to better suit your needs.
|
Tenure (In Years) |
EMI (at 11% interest rate) |
EMI (at 15.50% interest rate) |
|---|---|---|
|
1 |
₹44,190.83 |
₹45,247.21 |
|
2 |
₹23,303.92 |
₹24,362.27 |
|
3 |
₹16,369.36 |
₹17,455.34 |
|
4 |
₹12,922.76 |
₹14,042.43 |
|
5 |
₹10,871.21 |
₹12,026.60 |
What Should You Do in Order to Fetch the Lowest Interest Rate from IDBI Bank?
You can get a low-interest deal from IDBI Bank if you bear the following points in mind:
- Maintain a High Credit Score- Regularly check your credit report to ensure accuracy and take steps to improve your score if needed. This includes timely repayment of existing loans and credit card bills.
- Maintain a Stable Income and Employment - Make sure your money is consistent and you have solid work. People with a long work history typically receive better rates from lenders, especially if they are employed by respectable companies.
- Negotiate with the Bank - Don’t hesitate to negotiate the interest rate with the bank, especially if you have a strong financial profile. Banks may be willing to offer a lower rate to retain a valuable customer.
- Avoid Missing Repayments: If you miss a loan or credit card payment, it may impact your credit score. Your past repayment history is usually taken into account by lenders when setting interest rates on personal loans. Likely, people who have made on-time payments on their credit card bills and prior EMIs would have a reduced interest rate.
Documents Required for a Personal Loan from IDBI Bank
These are the documents that are required for the personal loan application -
- RBI Approved Account Aggregator Process/ Bank Statement Last 3 months
- Latest salary slip with Form 16
- Net Banking or Debit Card details to set up e-mandate
- Valid KYC
- Aadhaar card with Date of birth
- Pan card
Other Charges of IDBI Bank Personal Loan
These are some additional fees and charges that apply to your personal loan charges -
|
Product Category |
Fees/Charges |
|---|---|
|
Processing Fee |
|
|
Salary Account with in-built overdraft facility |
|
|
Overdraft facility to IDBI Bank Pensioners |
|
|
Foreclosure Charges |
|
|
Personal Loan |
From the date of disbursement up to 6 months – 2% + applicable taxes. |
|
After 6 months the charges are NIL. |
|
|
Insurance Charges |
|
|
Copy of Property Documents |
Rs.225/- |
|
Changing the repayment mode to PDC or ECS, or switching between PDCs and ECS |
Rs.575/- |
|
Cheque Return/ ECS Return Charges Due to financial reasons as under:
|
Rs.300/- |
|
Duplicate Statement Charge |
Rs.115/- |
|
Re-issuance of PO/DD |
Rs.115/- |
|
Duplicate Certificate / Interest Paid Certificate |
Rs.150/- |
|
Copy of credit information obtained from CIBIL |
Rs.50/- |
|
Penal Interest charges on Overdue amount for the delayed period |
|
|
Personal Loan |
36% Per annum |
|
Salary Account with in-built overdraft facility |
2.5 % per annum |
|
Overdraft facility to IDBI Bank Pensioners |
2.5 % per annum |
How can you calculate EMI with interest rate?
As mentioned above, the interest rate on a loan is one of the key details which decides the EMI. When you plan to apply for a personal loan at IDBI Bank, you can assume a rate as per your desire in addition to the loan amount and tenure, both of which are preplanned, and then use an EMI calculator to know the payment details.
Balance Transfer
You can reduce the burden on your existing personal loan using the lowest IDBI Bank personal loan interest rates. Just request for a loan transfer at IDBI Bank and transfer your loan balance. Pay the balance amount with a new rate of interest and reduce the interest outgo and save on the EMI. See this example to know how the loan transfer works.
Example: If your loan of INR 6,00,000 comes with an interest rate of 16.00% for 5 years you have been paying the EMI for 2 years, you can switch the outstanding loan balance to IDBI Bank whose maximum interest rate is 12.40% per annum. In case IDBI Bank approves a balance transfer facility at an interest rate of 11.20% per annum, the savings would be as mentioned in the table below.
| Particulars | Details |
|---|---|
| Original Loan Amount | INR 6,00,000 |
| Interest Rate | 16.00% per annum |
| Tenure | 5 years |
| EMI @17.00% | INR 14,591 |
| Estimated Interest Outgo @17.00% | INR 2,75,450 |
| Interest Paid Till 2 Years | INR 1,65,199 |
| Outstanding Balance at the End of 2nd Year | INR 4,15,018 |
| EMI @11.20% for the Remaining 3 Years | INR 13,785 |
| Interest @11.20% Over 3 Years | INR 81,225 |
| Interest Paid Till Now + Interest Payable Over the Next 3 years | INR 2,46,424 |
| Estimated Savings in Terms of EMI | INR 806 |
| Estimated Savings in Terms of Interest Payment | INR 29,026 (2,75,450 - 2,46,424) |
Note: IDBI Bank charges a nominal fee for the balance transfer. Add the fee amount and see how much you can save after the loan transfer.
Compare Personal Loan Interest Rates from Different Banks
Below is a table showing the personal loan interest rates from various banks for 2024 to help you make the best choice.
FREQUENTLY ASKED QUESTIONS
1. What is the interest rate of a personal loan in IDBI bank?
The interest rate of a personal loan from IDBI Bank is currently 11.00%-15.50% p.a.
2. How to change personal loan interest charges in IDBI Bank?
You may be able to negotiate a reduced interest rate on your personal loan with the bank if you consistently maintain a high credit score, maintain stable income and employment, repay your debts on time, etc.
3. How is the repayment fee calculated?
The repayment fee is calculated in two ways -
- As a portion of the sum that you wish to pay in advance, or
- As a proportion of the principal balance due at the time of early repayment.
4. How do I obtain a good interest rate?
You may be eligible for favorable rates if you are in good standing with the lender in question and have a credit score of at least 750. Additionally, you might be able to get cheaper rates if you have a high credit rating and work for a reputable company.
5. Even with a low credit score, is it possible to obtain a low interest rate?
Yes, even with a low credit score, you might be able to receive a personal loan. Getting a co-applicant with good credit to apply with you can help you try to get a favorable rate. Obtaining the support of a guarantor with good credit is an additional option.
6. What is a personal loan fee?
Some lenders demand an upfront, one-time fee for loan origination in exchange for loan processing.
7. Are interest rates on personal loans fixed or variable?
Based on the alternatives offered by the lender, you can choose between a fixed and a fluctuating interest rate.
8. What is the mechanism by which a balance transfer lowers your interest rate?
The process by which a borrower moves their outstanding loan balance from one lender to another is known as a personal loan balance transfer. The main advantage of this is that you can move the remaining loan balance to a bank or other financial institution with a lower interest rate, which will lower the total amount of interest you pay back throughout the loan.
