New Delhi: The government and the Reserve Bank have always been saying, banks should take proper advantage of repo rate to the customers. Private sector bank IDBI has introduced home and auto loans based on repo rates. The bank said that it will offer repo rate based home and auto loans.

The annual interest rate on this loan starts at eight and a half percent. IDBI Bank has said that Suvidha plus house loan and Suvidha plus vehicle loan will be linked to the repo rate of the Reserve Bank and will be available to customers from September 10.

Two percent TDS on cash withdrawals of over Rs 1 crore

IDBI Bank said that this loan will be given to new customers with good loan credit and those with a minimum annual income of up to six lakh rupees. The bank has said that a loan of up to 75 years will be given for a period of 35 years at an interest rate of eight and a half percent.

Apart from this, transfer and top-up facility will be available without any processing fees. Customers will be offered an auto loan of up to Rs 25 lakh for a period of seven years at an interest rate of 8.90 %. This move of the bank is expected to increase demand in auto and real estate, which will help in recovering from the recession.

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