IDBI Bank provides personal loans to salaried individuals, professionals, non-professionals and pensioners to meet unexpected cash emergencies, or to meet other expenses such marriage, renovation of house, travel, medical emergency, etc.
Personal loans are available to salaried individuals and pensioners who have a salary account and a pension account with IDBI Bank and an in-built overdraft facility. In addition, the bank also provides loans to employees of central and state government departments, public sector companies, multinationals and those employed with reputed listed companies. The latter category may or may not have a banking relationship with the bank.
For the salaried class, the income loan eligibility criteria is a minimum annual income of Rs 1.8 lakh, for professionals Rs 3.6 lakh and for non-professionals the minimum annual income is Rs 5 lakh. The minimum age is 21 years and maximum is 60 years while for pensioners the maximum age is 75 years. For pensioners the bank requires a third-party guarantee as well.
The tenure of the loan varies from a year to 60 months. Salaried individuals, professionals and non-professionals are eligible for loan amounts ranging from Rs 50,000 to Rs 10 lakh, while pensioners can get loans from Rs 25,000 to Rs 5 lakh. Also, personal loans borrowers are covered under a free personal accident insurance policy.
Personal Loan Charges
The average annual interest rate applicable on personal loans is 13.59%. The table below gives a detailed break-up of interest charged category-wise
| Credit Vision Score | Applicants Having Salary/Payroll/Pension Accounts with IDBI Bank | Employees of Central/State Government/ Public Sector Undertaking/ MNCs Not Having Payroll/Salary Account with IDBI Bank | All Other Salaried Individuals | Self-employed Professionals (SEP) Having Asset/Liability Relationship with IDBI Bank | Self-employed Non-Professionals (SENP) Having Asset/Liability Relationship with IDBI Bank |
| 801 &above | 9.50% | 10% | 12% | 12.25% | 12.50% |
| 776 to 800 | 9.75% | 10.25% | 12.25% | 12.75% | 13% |
| 740 to 775 | 10.75% | 11.25% | 13.25% | 13.75% | 14% |
| 700 to 739 | 11.75% | N.A. | N.A. | N.A. | N.A. |
| -1 | 10.75% | N.A. | N.A. | N.A. | N.A. |
Note: Discount of 50 bps applicable on the above slabs for home loan & loan against property borrowers with clear repayment track in last 2 years (Not available for Pre-EMI cases), subject to a minimum rate of interest of 9.50% p.a.
- IDBI Personal Loan: Salary Account with In-built Overdraft facility
The interest rate for this personal loan variant is floating in nature, that is, linked to Repo Linked Lending Rate (RLLR). It starts from 10.90%.
- 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 8.15%. Please note that this is applicable for retired IDBI staff only.
Individuals with CIBIL score below 700, will not be considered for personal loans.
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What is personal loan foreclosure charge?
IDBI Bank charges individuals if they want to close out the personal loans by making the full payment at a date earlier than the loan tenor. This is called foreclosure or prepayment charge. Foreclosure can also be in the form of part payment of loan before the due date. There are penalties involved in foreclosures.
Personal Foreclosure Charges for IDBI Bank
IDBI Bank allows foreclosure without any charges after six months of disbursement of the loan. However, individuals who want to close out the loan within 6 months will have to pay 2% of the outstanding loan amount as foreclosure charge.
IDBI Bank also allows part-prepayment of loans before the end of the maturity period, on the condition that no further personal loans will be provided to that particular borrower for 12 months from the time of prepayment. In all cases, the borrower should have paid at least one instalment amount (EMI).
Conclusion
IDBI Bank provides easy and convenient personal loans to those needing them. Most of the loans are advanced on the basis of specified CIBIL scores, to which the interest rates charged are pegged. The rates provided are competitive and among the lowest in the industry. The bank has made it easy for people to apply for loans and take them while foreclosure and prepayment charges are among the least stringent in the industry.