Circular No.

IDBI Bank/2011-12/344/RBG/PBG/162

December 28, 2011

To Retail AssetsSales/ Operations/ Credit/ Collections / Branches All Zonal Heads /Regional Heads Dear Sir/Madam, Extension of Fixed First Home Loan - Special Festival Offer ALCO at its 190th meeting held on December 9, 2011 has decided to extend the 'Fixed First Home Loan Scheme (FFHLS)' under the Special Festival Offer till March 31, 2012. Moreover, the floating interest rate for loan amount of Rs. 75 lakh and above is reduced by 25 bps with effect from January 1,2012. Accordingly, the revised interest rate structure with effect from January 1, 2012 is as under: 1. Home Loan Floating Rate of Interest The applicable floating interest rates for home loans are as under: Base Rate Loan Amount Up to Rs 25 Lakh Above Rs 25 lakh to Rs 30 lakh Above Rs 30 lakh to less than Rs 75 lakh Rs 75 lakh and Above * 25 bps higher if LTV is above 75% 2. Fixed First Home Loan Scheme The Fixed First Home Loan Scheme offers a combination of fixed and floating interest rates on Home loans. Under this scheme Home Loans are offered to the borrowers initially at Fixed Rate of Interest i.e Fixed for First year or Fixed for First 2 years at the borrowers option and on completion of the Fixed period, the Rate of Interest on the loan would be reset to Floating Rate of Interest of the Bank for the remaining tenor of the loan. 10.75% p.a Rate of Interest 10.75% (BR) 11.00%* (BR+0.25%) 11.25% (BR+0.50%) 11.50% (BR+0.75%)

The interest rate structure of Fixed First Home Loan Scheme and applicable floating rates after completion of fixed rate period are given below: Table 2.1: Option I-Fixed Rate for First year Tenor Interest type Loans Up to Rs 25 lakh For First year On completion of the Fixed period Fixed Floating 10.75% p.a (BR) p.a Rate of Interest

Loans Above Rs 25 lakh up to Rs 30 lakhs For First year On completion of the Fixed period Fixed Floating 11.00% p.a * (BR+0.25%)* p.a

Loans Above Rs 30 lakh to less than Rs 75 lakh For First year On completion of the Fixed period Fixed Floating Loans of Rs 75 lakh and above For First year On completion of the Fixed period Fixed Floating 11.75% p.a (BR+ 0.75%) p.a 11.25% p.a (BR+0.50%) p.a

*25 bps higher if LTV is above 75% Table 2.2: Option II-Fixed Rate for First 2 years Tenor Interest type Loan Up to Rs 25 lakh For First 2 years On completion of the Fixed period Fixed Floating 11.00% p.a BR% p.a Rate of Interest

Loans Above Rs 25 lakh up to Rs 30 lakhs For First 2 years On completion of the Fixed period Fixed Floating 11.25 %p.a * (BR+0.25%)* p.a

Loans Above Rs 30 lakh to less than Rs 75 lakh For First 2 years On completion of the Fixed period Fixed Floating Loans of Rs 75 lakh and above For First 2 years On completion of the Fixed period *25 bps higher if LTV is above 75% Fixed Floating 12.00 % p.a (BR+0.75%) p.a 11.50 % p.a (BR+0.50%) p.a

Processing Fees For loan amount up to Rs 25 lakh For loan amount above Rs 25 lakh levies. : Nil : 0.5% of loan amount plus applicable taxes and

Duration of the Scheme The Scheme would be applicable for all the loans sanctioned with effect from January 1, 2012 to March 31, 2012 provided the loan is partly/ fully availed before June 30, 2012 within the sanction validity period.

Repayment of Loan Repayment of loan should be by way of Standing Instruction (SI) through account with the Bank for all cases to be eligible under the Festival Offer Scheme. In exceptional cases, the condition of repayment by way of SI may be waived off. The concession of 0.25% for New Loans up to Rs.25 lakh subject to floor of Base Rate to customers giving standing instructions (SI) for EMI repayment through saving account with the Bank would not be applicable for the cases sanctioned under Festival Offer Scheme.

Operational Guidelines and other modalities as advised vide our circular no. IDBI BANK/ 201112 /242/RBG/PBG/114 dated October 14, 2011 will remain unchanged. The contents of this Circular may please be brought to the notice of all officers/staff attached to your RAC/Branch.

Yours faithfully Sd/M.H.Kulkarni GM-Retail Assets