IDBI Bank offers personal loan to various types of applicants including salaried individuals, self-employed professionals, non-professionals and pensioners. You can avail up to Rs. 10 lakh in the form of personal loan from IDBI Bank to meet a variety of urgent financial needs, such as home renovation, hospitalization or educational expenses. Subsequent sections discuss the interest rate for IDBI Bank personal loan, including the tips to get a loan at a low rate of interest.
IDBI Personal Loan Interest Rates
The interest rate for IDBI personal loan starts from 12% for salaried individuals. Please note that IDBI Bank offers 3 different types of personal loans, which come with different interest rates. Additionally, the interest rate depends on the type of applicant. Thus, we have accordingly grouped the rates in the following section.
IDBI Personal Loan Interest Rates for Different Applicant and Loan Types
The interest rates for all the types of personal loan offered by IDBI Bank as per the applicant category have been listed below.
1. IDBI Personal loan to Salaried Individuals, Self Employed Professionals (SEPs), Self Employed Non Professional (SENP) & Pensioners
The interest rate for this loan category depends on your Credit Vision Score, which in turn is based on your repayment history.
|Credit Vision Score|
|Individuals with payroll/ salary/ pension accounts||All salaried applicants||Self Employed Professional (SEP)/ Self Employed Non Professionals (SENP)|
|801 and above||12%||12.25%||13.00%|
|776 to 800||12.25%||12.50%||13.50%|
|740 to 775||13.25%||13.50%||14.00%|
|700 to 739 (only applicable for the staff of LIC and its subsidiaries, IDBI Bank and those with payroll/ salary relationship and pension accounts )||13.50%||N/A||N/A|
2. IDBI Personal Loan: Salary Account with In-built Overdraft facility
The interest rate for this personal loan variant is floating in nature, i.e., linked to Repo Linked Lending Rate (RLLR). It starts from 12.40%.
3. IDBI Personal Loan: Pension Account with in-built Overdraft facility to Pensioners of IDBI Bank Ltd
The interest rate for this personal loan variant is also floating in nature and starts from 9.65%. Please note that this is applicable for retired IDBI staff only.
IDBI Personal Loan Balance Transfer Interest Rates
Personal Loan Balance Transfer refers to a process where you can transfer your ongoing loan with any other bank to IDBI Bank for better terms and lower rate of interest. However, the rate of interest for such a case is not fixed and depends on the applicant’s profile.
Method of Interest Calculation for IDBI Bank Personal Loan
There are two main methods of interest rate calculation for personal loan. They have been explained in the following table.
|Flat Rate Method of Interest Calculation||Reducing Balance Method of Interest Calculation|
|The interest on your personal loan is calculated on the entire loan amount initially borrowed.||The interest on your personal loan is calculated on the outstanding loan amount and not the total amount initially borrowed.|
|You tend to pay a greater interest by the end of the loan tenure.||You significantly save on the interest component when this method of interest calculation is used.|
IDBI Bank uses the “Reducing Balance” method of interest calculation. Thus, the interest on IDBI Bank personal loan will only be calculated on the outstanding loan amount, which will help you to save a lot on the interest component.
IDBI Personal Loan EMI Calculation
Personal loan EMI depends on three variables, namely loan amount, loan tenure and interest rate. You can use the Paisabazaar Personal Loan EMI Calculator to know your monthly payout for free. Moreover, you can use the calculator to try various combinations of loan parameters to arrive at the most suitable EMI as per your monthly budget. The following table shows how the IDBI personal loan EMI varies with changes in the loan variables.
|Loan Amount (Rs.)||Interest Rate (p.a.)||Tenure (months)||EMI (Rs./month)|
IDBI Personal Loan Interest Calculation
Let us understand how the total interest paid on a personal loan varies as per the loan parameters in the following table:
|Loan Amount (Rs.)||Tenure (years)||Total Interest Payout (Rs.)||Total Amount Repaid (Rs.)||Proportion of Interest in Total Amount Repaid|
|5 lakh @ 14%||2||76,155||5,76,155||13%|
|7 lakh @ 12%||3||1,37,001||8,37,001||16%|
|10 lakh @ 14%||5||3,96,095||13,96,095||28%|
IDBI Bank Interest Rate Comparison
|IDBI Bank||Axis Bank||SBI||ICICI Bank||Bajaj Finserv|
|Interest Rate||12% onwards||12-24%||10.35% onwards||11.25-22.00%||12.99% onwards|
|Loan amount||Up to Rs. 10 lakh||Up to Rs. 15 lakh||Up to Rs. 20 lakh||Up to Rs. 20 lakh||Up to Rs. 25 lakh|
|Processing Fee*||Up to 1% of the loan amount||Up to 2% of the loan amount||Up to 1.50% of the loan amount||Up to 2.25% of loan amount||Up to 4.13% of the loan amount|
*NOTE: Additional taxes may apply as per the bank guidelines.
Factors Affecting Interest Rates
Personal loan interest rate depends on the following factors:
- Credit Score: This refers to a 3-digit number that varies between 300-900. It is calculated on the basis of your previous loans and credit history, and hence is reflective of your repayment ability. Check your credit score for free with Paisabazaar.
- Credit Utilization Ratio: This refers to the proportion of credit utilized out of the total credit available to you.
- Multiple Loan Applications: The number of loan applications also affect the personal loan interest rate. Too many applications at the same time may portray you as credit hungry.
- Pre-existing Relationship with the Lender: Your previous relationship with the bank/ NBFC also impacts the personal loan interest rate.
- Fixed Obligation to Income Ratio (FOIR): This refers to the proportion of ongoing loan EMIs and credit card dues in your total income.
How to Get Low Interest Rates on IDBI Bank Personal Loan?
Following are the tips to get a personal loan at a low rate of interest:
- Maintain a good credit score. Higher the score, better are the chances of getting a loan at a low rate of interest.
- Keep your credit utilization ratio low, preferably less than 30%.
- Avoid multiple loan applications.
- Apply at a lender with whom you have a good pre-existing relationship. For instance, you may have a long run savings account or a fixed deposit with Bank A, then apply at this bank for a personal loan to get a low rate of interest.
Frequently Asked Questions (FAQs)
Q1. What are the maximum and minimum loan amounts with respect to IDBI personal loan?
The maximum and minimum personal loan amounts offered by IDBI Bank are as follows:
- For salaried, self-employed professionals and non-professionals:
- Maximum: Rs. 10 lakh
- Minimum: Rs. 50,000
- For Pensioners:
- Maximum: Rs. 5 lakh
- Minimum: Rs. 25,000
Q2. What is the IDBI personal loan interest rate for salaried individuals?
IDBI personal loan interest rate for salaried individuals start from 12%.
Q3. What method of interest calculation does IDBI Bank use for personal loan?
IDBI Bank uses the reducing balance method of interest calculation for personal loan.
Q4. What is the personal loan interest rate for existing customers of IDBI Bank?
The personal loan interest rate for existing customers of IDBI Bank may be lower than that for other customers. However, this completely depends on the applicant’s profile and bank’s discretion.
Q5. How can I pay IDBI Bank personal loan EMIs?
You can pay IDBI Bank personal loan EMIs by means of Standing Instructions to automatically debit the amount from your savings account on the respective due dates. Alternatively, you can issue post-dated cheques (PDCs) or pay via Electronic Clearing Service (ECS).