IDBI Bank Slashes home loan rates to 8.25 Percent

IDBI Bank today announced special home loan scheme which is a combination of fixed and floating interest rates. The scheme offers home loans at 8.25 per cent irrespective of the amount till March 2012, giving a wider option of cheap loans to home buyers. Thereafter, the interest rate charged on these home loans would be at the then prevailing floating interest rates.

The offer is applicable to all new home-loan customers applying on or before this month, and taking a part or full disbursement during the period, an IDBI Bank press release said.

After the offer period, Home Loan Interest Rates will be charged based on the then prevailing floating rates, the bank said. IDBI Bank, at present, is offering 8.75 per cent for loans up to Rs 30-lakh, 9 per cent for loans between Rs 30-lakh and up to Rs 50-lakh and 9.25 per cent for loans above Rs 50-lakh.

State Bank of India (SBI) is already offering home loans in the range of 8 per cent. A home loan war was triggered when mortgage leader HDFC cut interest rates to match SBI. Since then the violent competition in the segment is getting intensified day by day with ICICI Bank and another player Dewan Housing also joining the league.

Maruti and IDBI Bank Tied-Up for Auto Loans

IDBI Bank Ltd (IDBI) and Maruti Suzuki India Limited (MSIL) today entered into a Memorandum of Understanding (MoU) for providing Auto Finance to prospective customers of MSIL. The MoU was signed by Shri C.S. Jain, Head – Personal Banking Group, IDBI Bank Ltd., and Shri R.S. Kalsi, Chief General Manager of MSIL.

As per the scheme modalities, MSIL and its Dealer network will collaborate with IDBI Bank Ltd for the purpose of “Retail/ Wholesale Activation” in order to facilitate vehicle business. The MOU will facilitate prospective customers of MSIL with vehicle finance at attractive terms.

The loan facility for MSIL prospective customer is extended up to 7 years with maximum funding on ‘on road price’ and faster processing. The Bank would extend financing facilities to eligible customers for MSIL cars and multi-utility vehicles. The tie-up will benefit both, IDBI Bank in further strengthening its position in retail loan space and MSIL in leveraging the retail financing strength and reach of the Bank.

IDBI Bank launched Auto Loans in July 2009. The Auto Loan product is very competitive and the Bank is taking various initiatives to be a leading player in the segment. The product offers finance for new vehicles at maximum funding at attractive rate of interest.