Consolidation Loans from IDBI Bank
There’s a consolidation loan for everyone based on their needs
IDBI Bank, previously known as the Industrial Development Bank of India, offers a range of financial products to different segments of its customer base. It was recognised as a public sector bank until March 2019 when RBI re-categorised it as a private sector bank. IDBI Bank offers different loan options to its business and retail customers. You can choose from a range of loans that are specifically suited for your different needs.
IDBI Bank Consolidation Loans
Consider this: you have two credit cards with balance building by the day and a couple of loans that you need to repay. Would you prefer to consolidate them into one scheme so that you can just pay off one instalment per month? Or four different ones which probably go during different times of the month? This is where a consolidation loan comes in handy. It can help you pay off all your debts and consolidate it all into one loan which you can repay by choosing terms as per your preference.
IDBI Bank offers loans that can be used by borrowers to repay their debts by using a single loan, referred to as a consolidation loan. This can be an unsecured loan like a personal loan or a secured loan like a loan against property, gold or securities. A consolidation loan helps you pay off your debts without going nuts. It will also help you get a grip on your financial situation since you will know exactly how much is going out each month and how you need to plan your budget.
Like most Indian banks, IDBI Bank does not brand a specific loan scheme as a consolidation loan. However, there are quite a few loans that can be used to consolidate your debt. They include:
- IDBI Personal Loan
- IDBI Loan Against Shares
- IDBI Mortgage Loan (Loan Against Property)
- IDBI Loan Against Property with Interest Saver
- IDBI Reverse Mortgage Loan
- IDBI Loan Against Rent Receivables
We give you a brief introduction to each of these consolidation loans below. In addition, you have the option to click further and read in detail about each loan (the link takes you to another page on our website). This specific page has been specifically designed so that you can get all the information you need on that loan in an uncluttered and easy-to-read format.
Please note that in some cases information is less or simply not available. In such instances, we have not been able to create a page on that loan as yet, but we may do so in the future if information becomes available.
IDBI Bank Personal Loan
This loan helps borrowers get financial assistance to meet their urgent financial needs including wedding expenses, travel expenses, medical expenses and so on. However, what most people do not know is that this loan can also be used as a consolidation loan to pay off their high-interest credit card debts and loans.
Features of IDBI Personal Loan
Why this Loan?
- The IDBI Bank Personal Loan is meant for salaried individuals, self-employed professionals, self-employed non-professionals (with a regular, identified and legal source of income), and pensioners who need financial assistance to meet urgent personal needs
- This is an unsecured loan
IDBI Bank Loan Against Shares
This loan helps borrowers get access to funds by pledging their securities such as shares, bonds, mutual funds, life insurance policy, National Savings Certificates (NSC), Kisan Vikas Patra (KVP), etc. to the bank. The main purpose of this loan is to help the borrower to meet any contingencies and personal needs such as a wedding, overseas travel and so on. This loan can also be repurposed to pay off the borrower’s high-interest debts thereby consolidating their debts.
Features of IDBI Bank Loan Against Shares (Loan Against Securities)
Why this Loan?
- The IDBI Bank Loan Against Shares is meant for borrowers who want to avail financial assistance by pledging securities for financial emergencies. They can also avail this scheme as a consolidation loan and pay off their high-interest credit card debts and loans
- The maximum loan amount sanctioned under this loan scheme is up to 50% of the market value of equity shares, 50% of the net asset value of mutual fund units, 85% of the surrender value of life insurance policy, 80% of the accrued value of NSCs and 80% of the accrued value of KVPs
IDBI Bank Mortgage Loan Scheme
This loan helps borrowers get access to funds by mortgaging their residential or commercial property to meet their urgent financial needs. While a mortgage loan can be used to meet personal financial expenses such as a wedding, foreign travel, medical treatment, higher education and so on, it can also be used as a consolidation loan to pay off your high-interest debts.
Features of IDBI Mortgage Loan
Why this Loan?
- The IDBI Bank Mortgage Loan is meant for borrowers who need assistance to meet financial needs other than for capital market or speculative purposes
- Being a secured loan, borrowers can avail this scheme as a consolidation loan and pay off their high-interest credit card debts and loans, thereby consolidating their debts
IDBI Bank Loan Against Property with Interest Saver
This loan helps borrowers get access to funds by pledging property to meet their urgent financial needs. In addition to being used to meet personal financial expenses such as a wedding, foreign travel, medical treatment, higher education and so on, this loan can also be used as a consolidation loan to pay off high-interest debts. This loan scheme offers savings on interest costs as well. The borrower gets a Flexi Current Account where they can deposit savings, annual bonus, etc. which can be used to pay off the loan and hence reduce the interest burden.
Features of IDBI Loan Against Property (Interest Saver)
Why this Loan?
- The IDBI Bank Loan Against Property (Interest Saver) is meant for borrowers who need assistance to meet financial needs other than for capital market or speculative purposes
- Being a secured loan, borrowers can avail this scheme as a consolidation loan and pay off their high-interest credit card debts and loans
- The biggest benefit of availing this mortgage loan is that it offers an opportunity to save the interest cost and repay the loan faster
IDBI Bank Reverse Mortgage Loan
This loan helps senior citizens get access to funds by mortgaging their self-occupied residential property and convert it into liquid cash flows to meet their living expenses. This loan scheme can also be used for the repayment of an existing loan taken for the residential property to be mortgaged or to consolidate your debts.
Features of IDBI Bank Reverse Mortgage Loan for Senior Citizens
Why this Loan?
- The IDBI Bank Reverse Mortgage Loan is meant for senior citizens who want to generate liquid cash flow to meet their living expenses by pledging their self-occupied, residential property used as a primary permanent residence for this loan
- The borrowers can avail this scheme as a consolidation loan
- Partial lump sum payments are accepted towards the loan restricted to 50% of the sanctioned loan amount up to a maximum of Rs. 15 lakh
IDBI Bank Loan Against Rent Receivables
This loan helps property owners who have let out or leased their property situated in metro, urban or semi-urban areas to government units, semi-government units, public sector undertakings, financial institutions, reputed corporations, multinational companies, etc. get access to funds to meet their personal needs. This secured loan can also be used to consolidate high-interest debts.
Features of IDBI Loan Against Rent Receivables (Loan Against Future Lease Rentals)
Why this Loan?
- The IDBI Rental Loan Scheme is let out or leased their property situated in metro, urban or semi-urban areas to government units, semi-government units, public sector undertakings, financial institutions, reputed corporations, multinational companies, etc. get access to funds to meet their personal needs
- This loan can be availed to meet the expenses for business expansion, education, wedding, purchase of a new property, repayment of existing loans, etc. It cannot be used for speculative reasons
- Borrowers can also repurposed into a consolidation loan
Important Note: IDBI Bank may offer more consolidation loan options that are not yet published on the website. If you prefer we suggest that you get in touch with the nearest branch to check the loan schemes they offer. This will also help you get a custom quote since many loan schemes are need-based and certain charges such as application charges, service charges, strategic premium, etc. may be decided on a case-to-case basis.
Interest Rate for IDBI Bank Consolidation Loans
- The applicable interest rate on these loans is defined as the sum of two factors namely, one-year Marginal Cost of Funds Based Lending Rate (MCLR)/Repo Linked Lending Rate (RLLR) and Credit Risk Premium. In certain cases, another factor called Spread or Strategy Spread, which is a constant value set by the bank, may be added to the computation of interest rate on certain loans
Documents Needed for Individuals (Salaried and Self-employed)
- Loan Application Form duly filled and signed by the applicant and co-applicant, if any
- Two Passport Size Photographs of applicant and co-applicant
- Personal ID Proof: Aadhaar Card, PAN Card, Passport or Driving License. PAN Card / PAN Card Issuing Letter is must
- Signature Proof: PAN Card, Banker’s Verification, Driving License or Passport
- Residential Address Proof (Any One): Aadhaar Card, Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
- Income/Banking Proof for Salaried Professionals: Last 3 months’ salary slip, Form 16 or income tax returns
- Income/Banking Proof for Self-employed Professionals/Self-employed Non Professionals: Computation of income of last 2 years, Balance Sheet, Profit and Loss Account, Registration Certificate, GST Return, Income Tax Challan/ Form 26AS/TDS Certificate, IT Assessment, etc.
Reference Facts
- IDBI Bank Website: www.idbibank.in
- Headquarters: Mumbai, Maharashtra
- Call Centre Toll-Free Number: 1800 209 4324, 1800 22 1070