IDBI announces Diwali discount on home loan schemes

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IDBI announces Diwali discount on home loan schemes
IDBI Bank: Quotes, News
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Banks, these days have been devising a new home loan schemes to boost the sluggish demand for home loans. The growth in housing loans had fallen significantly due to continuous rate hike by the Reserve Bank.

After ICICI and HDFC Bank, public sector lender, IDBI Bank on Wednesday announced some freebies or Diwali discount offers on its home loan schemes.

The bank has decided to offer some discounts on its floating rate home loans, combination of fixed and floating rate home loans and auto loans.

Under the new floating rate schemes, borrowers can avail of home loans up to Rs 25 lakh at 10.75%, Rs 25 lakh - Rs 30 lakh at 11% and loans between Rs 30 - Rs 75 lakh at 11.25%.

The bank has also announced a fixed-floating combination scheme, where borrowers can peg their rates for initial one year or two years. Under the scheme, the rate will be 10.75% if customers are opting for one year,11% in case of two years and later the scheme will be linked to the bank's base rate.

At present bank's base rate is 10.75%.

“All new borrowers would be given an option of either fully floating rate or a combination of fixed and floating rates. The processing fee for loan amounts upto Rs 25 lakh has been waived. The bank has also reduced the existing floating home loan rates by 25-50 bps,” IDBI Bank said in a statement.

The bank has also decided to waive off processing fee for home loans till Rs 25 lakh.

For auto loans, the bank announced a 100% waiver on processing fee.

The discount offer will be applicable between October 15 and December 31, the bank said in a statement.

Last week, Dena Bank also slashed its interest rate on home loan and auto loan schemes by 23 basis points. The bank cut the processing fees by 50%.

Read more about: rbi, idbi bank, diwali, home loan
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