Expert Guide to IDFC Bank Personal Loan and Interest Rates

Pay Off Personal Loan

Pay Off Personal Loan

IDFC bank personal loan is quite popular among a large number of Indians. They can take out such finances at their discretion. If you run out of money, don’t worry even a little bit. IDFC bank allows you to borrow the required cash to fulfill all essential financial commitments. These expenses may include consolidating your debts, minor home improvements, higher education for kids, shopping, tours, etc. So, it is safe to say that IDFC’s first bank loan is your lifesaver.

You don’t need to use an asset as collateral to get an IDFC loan. By default, the Bank considers your paycheck and property papers as security against the borrowed money. So, it is an ideal loan product for those who fail to get loans because of the lack of collateral. They need to meet the terms and conditions and prove their eligibility to qualify for this financial scheme. You can borrow funds starting from ₹20,000- ₹4000000 for 12 to 60 months. The general interest rate on the borrowed money starts from 10.75 % p.a onwards. The processing fee is up to 1% of the entire loan amount. You can repay the loan before its maturity period by some pre-closure prices to the Bank.

Good News! IDFC First Loan Has Fixed Interest Rates

SBI Personal Loan Interest Rates

The interest rate on IDFC bank loans is locked. It doesn’t change during the entire loan period. Interest rates are based on a wide range of factors. It includes your monthly income, current financial status, previous transactions, pending bills, credit scores, etc. Generally, the better the credit score you have, the lower interest rates you can enjoy. Low-interest rates are pretty helpful because you will pay a lower cost to borrow the loan. In India’s loan market, some personal loans come with variable interest rates that change periodically. The disadvantage of a variable interest rate is that repayment amounts may fluctuate when the interest rate changes. In addition, it puts an additional burden on your budget. From this perspective, IDFC’s first personal loan looks like a more beneficial option for all borrowers.

IDFC First Bank Consumer Loan Comes With A Fixed Repayment Period

You can repay the borrowed money in 12, 24, 36, 48, and 60 months. More extended repayment periods reduce your monthly loan pay-off burden. Bank executives will look at your income & resources to decide the EMIs. Small installments allow people to meet all their needs and pay off EMIs comfortably. You must choose the loan amount in accordable with your income & repayment potential. Contact IDFC bank for early repayment of borrowed money. Bank executives will take some charges and settle the loan permanently. Timely or early loan repayment strengthens your credit score and makes you a reliable borrower. You face no issues in the future while applying for loans.

IDFC First Bank Loan Application: Take Steps Carefully For Instant Loan Approval

  • Know What Is Important For The Bank:

  1. Your Employment, Monthly Income, and Current Financial Condition

Analyzing Employment, Monthly Income, and Current Financial Condition

Taking a personal loan from IDFC bank is a challenging job. While reviewing your application, bank executives will pay attention to your employment, monthly income, and current financial condition. They always want to deal with less risky borrowers. So, you must have a stable job with any recognized company, government agency, firm, etc. You should earn at least ₹24,000 or more to qualify the personal loan eligibility criteria. Banks pay more attention to candidates with stable employment histories. Regular monthly income from a particular organization indicates the financial well-being of applicants. Banks expect that such a client can pay off the borrowed money on time. Therefore, you must display all sources of income to the banker to improve the chances of approval. Applicants who frequently change jobs generally fail to convenience bank executives about their financial stability and repayment potential. Therefore, they may reject your application declaring you “an untrustworthy borrower.”

  1. Credit Score

Credit Score Assessment

After receiving your application, bank executives contact credit rating agencies to see your credit scores. It is like a financial statement that shows the borrower’s previous transactions. By looking at your credit score, bank executives can quickly determine the risk factor if they issue a loan to you. A wide range of factors affects your credit score. Timely repayment of the loan is one such important factor.

You should maintain a minimum credit score of 650 to qualify for IDFC personal loan. The better your credit score is, the more chances there are for loan approval. People with poor credit scores often face rejections from IDFC bank. In such a scenario, you must communicate with the Bank and convince them of your present financial status, income, and repayment potential. The availability of a guarantor (also called co-borrower) may work wonders. If everything is perfect, the Bank may approve your loan application. However, it will charge a little bit of a high-interest rate. Pay off the loan on time and repair your credit score once again. Having a good credit score also helps in many situations of personal or professional life, example-landlords love renting rooms to people with good credit scores.

First-time loan borrowers often don’t have any credit scores. In such cases, bank executives may look into the financial records of your close relatives. It allows them to know your fiscal wellbeing and decide on your application.

Also Read: How to Apply Personal Loan in IDFC First Bank through Online?

  1. Current Debt Load or Other Financial Commitments

Debt

Bank executives calculate the debt load indicator of each borrower. It is the ratio of an individual’s average monthly payments on all current loans to their average monthly income. The higher the debt load, the higher risk it will pose for the Bank. It means that financial institutions may limit new loans to citizens with a high debt burden. Therefore, it is essential for the Bank that the borrower’s credit load level does not exceed 35-40% of total income. Bank executives will calculate the current debt load to evaluate how much money you can afford to pay off with applicable interest fees. Due to the increased debt burden, the Bank may reject your application for the loan.

  1. Your Image In Society & Interaction With Law Enforcement Agencies

Most applicants ignore those two important parameters while applying for IDFC bank personal loans. Your image in society and relationship with law enforcement agencies play a crucial role in loan approval or rejection. Bank will never want to issue a new loan to a financially undisciplined person and lead a life far beyond his income level. If there are FIRs against you (especially in connection with financial misappropriation), don’t expect a positive response from the Bank.

  1. Accuracy of Information & Documentation

After seeing the urgency for additional funds, many people apply for loans hastily and supply incorrect information to the banker. Applications with inaccurate, false, or misleading information often irritate bank executives. It may become a prominent reason for the rejection of your loan application. So, while filling up the application form, supply the correct information—it fasteners the background check and verification process by leaps and bounds. Review the provided information (for errors) before sending your application to the banker.

IDFC bank demands a wide range of documents to verify the supplied information & check your creditworthiness. Therefore, before loan application, arrange all documents related to your identity, residence, employment, salary credits, credit score, educational details, KYC, PAN, etc.

Applying for The Loan: Make Plan A, B, C For Your Convenience!

Getting your loan application approved is not a child’s play at all. IDFC bank receives an overwhelming number of applications for personal loans throughout the year. During interviews, verification, background checks, bank executives find lots of inaccuracies in applications. They quash such applications without consideration to offload the burden of an enormous number of applications. It allows them to process the applications of worthy candidates fast and helps them get the desired money. You should make plans A, B, C to systematically apply for the loan, reduce the possibility of blunders, & impress the banker.

Loan Application Process: Follow The Following Sequence

  • Prove Your Eligibility Criteria First

It is the first and the most significant step in the loan application. Visit the website of IDFC bank & check your eligibility criteria. In general, the applicant is an Indian citizen with stable employment and regular income, holds an active bank account, and his age must be between 21 and 60 years old. Self-employed individuals need to meet the essential eligibility criteria and submit company records (tax returns, registration papers, sales documents, account statements, etc.) to the banker.

  • Imagine A Perfect Loan Amount For All Your Needs

The borrower himself should be prudent enough to decide the loan amount. Just analyze your current income, pending bills, daily and monthly expenses, insurance commitments honestly. Then, determine the loan amount you can comfortably return to the banker with applicable interest fees during the repayment period. Reckless loan borrowing comes with negative implications on your credit score and future borrowing capabilities. Defaulting on loan EMIs payment can spoil your credit score. It can also provoke the Bank to use debt collection agencies to recover the unpaid debt.

  • Loan Application

To apply for the loan, visit the nearest branch of the bank or submit your application online. Most Indians prefer the first method. They have to complete an application form with correct details and submit it to bank executives. They also need to attach the required documents to the application form. The online application has the same saga. After receiving your application, bank executives check it from different angles. For banks, your income, creditworthiness, and repayment capabilities are significant. They use these parameters to evaluate the risk factor you carry and determine the loan amount. Once all formalities are done, the bank pronounces its judgment. Applications having misleading or fake details are quashed. If your application is OK from all angles, the bank provides its approval. You will get the approved funds in your bank account via online transfer after deducting the processing fee.

Follow These Recommendations

In the modern world, loans have become an integral part of people’s lives. However, it would be best to practice caution while taking a loan and using the borrowed amount. A negligent approach to choosing a loan often leads to monetary losses. By choosing attractive but expensive loans, clients overpay the loan and pay extra interest on the remaining debt every month by choosing attractive but expensive loans. It would help if you never took more than you needed. Take IDFC personal loans only when you have unavoidable financial commitments & there is no other way to raise the required money. Choose the loan amount which is sufficient for your needs & you can pay it off comfortably without feeling any additional burden on your budget.

Frequently Asked Questions

 

  • What Should Be My Income To Get IDFC First Bank Consumer Loan?

Individuals need to earn at least ₹ 24 000 to qualify for the loan. This criterion is for those who live in Delhi, Mumbai, and other metropolitan cities in India. If you live in tier-2 or tier-3 cities, the condition may change. Please get in touch with the Bank’s customer care service to gain more information and proceed accordingly.

  • Can I Get an IDFC Personal Loan Being A Bad Credit Borrower?

Bank executives consider lousy credit borrowers as risky individuals. So, they may reject applications from such individuals. Don’t be sad if your application is quashed on such grounds. Instead, have negotiations with credit lenders and let them know that your present financial condition is fine. Adding a co-borrower or guarantor may improve your chances for loan approval.

  • What To Do If I Don’t Have Sufficient Funds to Repay One or More EMIs?

Timely loan repayment is mandatory for all borrowers. Failure on this commitment not only spoils your credit scores but also escalates actions from the Bank. The best solution is to get only the required loan amount and maintain a sufficient balance in the specified bank account. The repayment takes place automatically & you get SMS or Email alerts for the same. Talk to bank representatives if you want to skip one or more EMIs or extend the repayment tenure. Most probably, they will allow repayment extension in exchange for some fees.

  • For Which Expenses I Can Borrow IDFC Personal Loans?

You can take out personal loans to meet numerous financial commitments. However, since loans are a financial liability, judicious borrowing is always expected from needy people. Therefore, it’s better to use such finances as the last option and use the received money only for unavoidable needs. So, Don’t borrow funds for meeting unnecessary needs, as you may fall into an endless debt trap.

Concluding Remarks

Are you short on funds and need additional cash injections on short notice? Don’t look here & there and apply for IDFC’s first loan application. A team of specialists supply you with correct information about the loan, help in the application process, complete formalities & get the much-needed funds faster. Careful use of the borrowed money helps come out of financial problems and lead a happy life every day.