IDBI Bank launches repo-linked home, auto loans

New Delhi: IDBI Bank on Friday said it will offer repo-linked home and auto loans with interest rates starting from 8.30 per cent per annum.

The products -- Suvidha Plus Home Loan and Suvidha Plus Auto Loan -- will be benchmarked to the Reserve Bank of India's (RBI) repo rate and will be available to customers with effect from September 10, IDBI Bank said in a release.

The private sector lender said these loans will be offered to new customers having good credit score and a minimum income of Rs 6 lakh per annum.

Home loans up to Rs 75 lakh with a tenure of up to 35 years will be offered at interest rate of 8.30 per cent per annum onwards.

The bank will also offer balance transfer with top-up facility under the new variant with zero processing fees, it added.

Customers will be able to avail auto loans up to Rs 25 lakh covering the on-road price with tenure up to 7 years with interest rate beginning from 8.90 per cent per annum.

The loan will be extended for new four-wheeler loans and to promote green initiative, additional discount of 10 basis points will be offered for purchase of electric car under Suvidha Plus Auto Loan.

"Our retail segment loan book is growing at 19 per cent year-on-year and this measure will surely help us to improve the business under the segment," said IDBI Bank Managing Director and Chief Executive Officer Rakesh Sharma.