IDBI Bank ups home loan target

IDBI bank is targeting additional Rs.1000 crore worth of home loans by March 2005 and in six months it plans to add vehicle loans to its line-up.

"We plan to increase our home loan portfolio to over Rs.5,000 crore by the end of this fiscal from the current level of about Rs.4,000 crore. We are also planning to come up with loan product for commercial vehicle and two-wheelers in six months," Prashant Joshi, retail head, said after launching a new scheme called 'Housefull home loan scheme'.

"We are aiming for spot loan disbursement of Rs 500 crore during the property exhibition in December 24-26," disclosed Amit Bhatia, head of home loans.

Under the scheme, the bank is extending loan up to 100 per cent of the house value in the national capital region at a floating rate of 7.25 per cent. The fixed rate for five years is 8 per cent.

Plus it is offering life insurance cover from Birla Sunlife during the loan tenure for a nominal one-time premium.

The bank is also trying to attract customers through a special draw in which a lucky borrower will get free furnishing up to Rs.4.5 lakh.

IDBI Bank's home loan portfolio at the end of 2003-04 stood at Rs 3,300.

The market for home loans is dominated by HDFC and ICICI Bank, which together have cornered over 45 per cent share. IDBI bank entered the home loan market two years ago. Industry expects the total home loan disbursals to touch Rs.70,000 crore this fiscal.