IDBI bank provides home loans and available for both the resident Indians as well as the NRIs.
The features of the IDBI Home Loan are given below:
Tenor: Up to 25 years for a resident Indian. This is however restricted to 15 years for the NRIs.
With subject to credit discretion, an applicant can apply for a loan of up to 90% of the property value.
The bank retains the title deeds as the security for the loan.
The title deed should not have any legal litigations pending as that can adversely affect the property ownership.
The tax benefits of IDBI Home Loan:
The IDBI Home Loan also comes with some of the tax benefits which are mentioned below:
A tax deduction of a maximum of Rs.1,50,000 on the income towards paid interest on the loan.
A tax deduction of a maximum of Rs 1,00,000 on the paid principal.
The applicants who apply for the loan must be:
Businessmen, self-employed professional.
Parents, children and spouse can be included as co-applicants.
Repayment through EMI.
Interest is to be paid on the loan portion disbursed before the commencement of the EMIs.
Repayment structure can be customized. If the borrower wants to pay less in the initial years and then pay high in the later years, it is possible.
IDBI Home Loan repayment tenor for resident Indians and salaried: 25 years and for self-employed resident Indians, the tenor is only 15 years. It is also kept at 15 years for the NRIs.
Prepayment and foreclosure:
2% prepayment charges in case the loan is transferred to a different bank and if it is prepaid from your own sources after 6 months of the commencement of the EMIs, there is no prepayment charge.