In today’s time, wherein inflation continues to skyrocket swiftly with each passing day, it is challenging for many individuals to fulfill all financial obligations with their income. They don’t have sufficient cash reserves to meet emergency needs. The overwhelming majority of individuals consider it quite embarrassing to seek financial assistance from their relatives, friends, neighbors, & colleagues. IDFC First Bank Loan is an ideal way to get the much-needed funds and meet all emergency needs. It acts as a lifesaver when you have unavoidable financial commitments, and there is a lack of sufficient funds. Let’s dig deep and know more about IDFC First Bank Personal Loan.
IDFC Loan: A Brief Introduction
Online Personal loan is a swift, competitive and efficient way to get emergency funds for meeting a wide range of financial commitments. Eligible borrowers can get funds for medical treatment, business improvement, higher education in foreign countries, tours and traveling, etc. IDFC’s first loan is famous for its tremendous benefits, including hassle-free documentation, nominal processing fees, moderate interest changes, and long tenure. Eligible borrowers can get funds starting from 20,000 to 40 lakhs. The bank will look at submitted documents, your current income, financial condition, credit score, ability to pay off the borrowed money & decide the actual loan amount you deserve. IDFC Bank offers three different types of personal loans. You can choose any one from them- (a) Simple Personal Loan, (b) Smart Personal Loan & Personal Loan Balance Transfer.
IDFC Personal Loan Eligibility Criteria: Check Your Eligibility for The Loan First
IDFC is a well-recognized bank headquartered in Mumbai, Maharashtra. To quality for IDFC pre-approved personal loan, you are supposed to meet the following terms and conditions:
IDFC First Bank Personal Loan Eligibility Criteria For Salaried Individuals:
- The applicant must be an Indian citizen,
- Their minimum age should be at least 23 years or more,
- They must be employed with a recognized company or organization and draw 20,000 per month,
- The applicant’s maximum age should be 60 at the time of retirement or loan maturity.
IDFC Personal Loan Eligibility Criteria For Business People:
- The applicant must hold Indian citizenship,
- Their minimum age should be 25 or maximum age 65 at the loan maturity,
- The applicant must run their business organization continuously for three years and has documents to prove it.
Also Read: A Detailed Guide on Personal Loan Eligibility
What Documents Do You Need for IDFC First Bank Personal Loan Apply?
You need to arrange the following documents for IDFC first loan application:
- KYC documents,
- Three months’ salary slips,
- Six months’ bank statement,
- PAN card,
- Identity and address proof,
- Two passport-size images.
If you are a self-employed individual, you need to arrange documents related to a 2-year income tax return and a one-year bank statement.
Remember that documentation plays an important factor when you apply for an IDFC loan and expect a positive result from the lender. Therefore, you need to arrange all documents in advance. The bank may demand additional documents during the background checks and data verification process. It may reject your application for the loan if any document is found to be fake. Moreover, if any document is missing, get it reissued by the relevant authorities.
A Few Words About IDFC Bank Personal Loan Interest Rates, Processing Fee, Preclosure fee, Loan Tenure
Interest rate affects borrowers’ decisions significantly as it affects their overall financial condition in coming months/years, their ability to spend money on different requirements, repayments, etc. When it comes to IDFC personal loan interest, it starts from 10.75 % p.a onwards. However, the actual interest rate may fluctuate depending on the loan amount you are looking for, your income, current financial status, credit score, etc. If the bank considers you an ideal candidate, you may get funds with reasonable interest fees and flexible terms and conditions.
| IDFC bank personal loan interest rate | 10.75 % p.a onwards |
| Processing Fees | Up to 1% of the loan amount and applicable GST |
| Preclosure fee | 3% of the outstanding loan amount and applicable GST |
| Loan Tenure | From 1-5 years. |
Also Read: Latest Personal Loan Interest Rates of All Banks and NBFCs in India
Taking A Personal Loan from IDFC Bank: Do Your Homework First
It has been observed that most people in India don’t have any plan about the loan amount, its use, repayment funds, etc. The majority of individuals just visit the IDFC bank in their area and explore their possibilities for loan approval. This is an unprofessional approach that often results in rejection from bank executives because they often find out inaccurate information in your application. On the other hand, tech-savvy individuals visit the IDFC website, submit their details, and curiously wait for a positive result from the bank. A professional approach to loan application, documentation, verification process, background check, loan acquisition, and repayment. Here is what you can do to improve your chances for IDFC first bank personal loan.
The Actual Loan Amount You Need
Taking a loan is a responsible undertaking that demands your attention right from the beginning to the end. Before applying for IDFC loan products, decide how much money is sufficient for meeting emergency financial needs. Honestly evaluate your needs and repayment potential. Take a loan amount that doesn’t affect your monthly budget. You must have sufficient money to pay off all EMIs comfortably and meet all basic needs.
Understand How IDFC Treats Your Application
Understating the bank’s modus operandi helps a lot in the loan application, approval, rejection, cash withdrawal, penalty, repayment procedures. When you submit an IDFC loan application, the bank’s representatives act in the following sequence:
Visual Assessment of The Applicant
When you submit an IDFC First Personal Loan application, the bank representative will invite you for an interview. He will ask some questions, find out your actual need for the loan and then begin the questionnaire process. They may ask a lot of questions to thwart attempts to take loans through fraudulent means. The bank manager will enter your information into its software during the conversation and check your eligibility on different parameters. This allows banks to stop dishonest people from taking loans and prevent data forgery. Therefore, it is in your interest to behave appropriately with the manager and answer his questions honestly.
Also Read: Why Is Financial Wellbeing Important? 5 Tips To Improve It
Consultation With Credit Rating Agencies
After the initial consultation, the bank representative consults with the credit rating agency. With this move, they extract your precious credit records and creditworthiness. To qualify for IDFC personal loan, you must maintain a minimum credit score of 650 or more. You can also check your credit score independently. If the bank receives negative information (about your creditworthiness) from credit rating agencies, chances are higher that it can reject your application.
Not all people with bad credit scores face immediate refusals. If the applicant’s dossier carries some weight, the bank may send a questionnaire for further consideration. If you happen to be a bad credit borrower, take drastic steps to win the bank’s trust and improve your chances for loan approval. Choose a person with a good credit score as a co-borrower and include his details in the loan application. The availability of a guarantor ensures bank loan repayment. Moreover, the bank must get the impression that your current income is satisfactory & you are capable of repaying the borrowed money in full at the right time without any difficulty.
Scoring Assessment of the Borrower and His Creditworthiness
Nowadays, banks use automated methods to analyze the applicant’s information. It significantly reduces the time required to review a loan application. IDFC first bank is not an exception to it. It uses a unique scoring program for this purpose which is based on loyalty and riskiness. Scoring is a bank’s risk assessment, which is expressed in points. For each item of the completed questionnaire, the bank sets a certain point. To approve or move the application to the next consideration stage, the client must score the minimum allowed number of points. IDFC bank has its minimum bar, and its size and the principles of data analysis are never disclosed. If you don’t score specific points, your application for the loan is rejected. Examples of Scoring points:
| Age | Middle-aged individuals get the highest score. Young applicants get the lowest score. |
| Number of Children | The more children there are, the lower the score. |
| Education | People with the highest qualification get the highest score. |
| Positions | Senior citizens get the highest score. |
| Marital status | Married people get more points. |
| Availability of property | If you have land, transportation, gold, insurance papers, the bank gives you a higher score. |
| Length of Your Employment. | The more, the better. |
| Delinquencies. | You get a low score during questioning. |
It aims to find out cases against you and make a decision accordingly. For example, the bank may reject your application if you committed a crime, there are police cases against you, you have lots of pending bills, and you were involved in financial embezzlement. Interaction with Security Services
Applying For IDFC First Bank Consumer Loan: Your Options
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Offline Method: Visit the Nearest Branch of IDFC Bank in Your Area
Even today, a large number of Indians conduct a massive range of tasks in offline methods. You can visit the nearest IDFC branch in your area and start applying for the IDFC bank consumer loan formally. The bank representative will ask you to submit your details using a loan application form and attach the supportive documents. It may take several days, and you will need to visit the branch multiple times to complete all formalities and get approved for the loan. The offline loan application method consumes resources, and some people find it quite frustrating & time-consuming.
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Online Personal Loan Application Method
This method is famous for ease of application, privacy, time-saving and other benefits. To apply for IDFC personal loan online, browse its website, navigate to the loan section, fill in the required details correctly, check the submitted information and click the submit button. One representative from IDFC bank will contact you and discuss your requirements. Follow the banker’s instructions, complete the required formalities, and wait for his decision. If you find to be the right candidate for the loan, the approved loan amount is issued. The bank deducts the processing fee and credits the remaining amount in the specified bank account via online transfer. Just withdraw the money and use it judiciously to meet urgent financial needs.
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Cooperation With Non-Banking Financial Company
One of the main reasons banks reject many applications is that applicants don’t follow the due procedure or carry incorrect applications. Such mistakes happen with people who have little knowledge about the loan. That is why it is recommended to choose a reliable NBFC (For Example-Buddy Loan). Their experts act on your behalf and help with the loan application, documentation, processing, acquisition, repayment, and dealing with the bank. In addition, working with Buddy Loan allows you to enjoy certain benefits:
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Freedom From Unwanted Hassles & Issues
Taking a loan from the bank is not an easy task at all, as many people think. Mind-blowing questions from banks, strict background checks, document verification, lots of formalities can make you feel irritated. Working with Buddy Loan keeps you away from these hassles. A team of loan specialists works on your behalf and makes your life simple.
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Protection To Sensitive Information
It is imperative to protect your sensitive personal, professional, and banking information. If it falls into the wrong hands, you may face financial losses. Professionals working with NBFC protect sensitive data and prevent hackers from accessing it.
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Application Tracking
It is one of the main advantages of working with Buddy Loan. After submitting your application for the loan, they keep a close eye on its progress and update you accordingly. Therefore, regular information about the application status keeps you informed.
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Free Expert Consultation
We all know that knowledge is power. The more knowledge you have about different loan products, the better decision you can make. Therefore, before applying for IDFC loans, you must seek more information about them, understand their pros and cons fully, and choose what is best for you.
Conclusion
IDFC bank personal loan is ideal for arranging additional funds during emergencies and meeting all urgent needs. The bank allows all eligible borrowers to get the required amount comfortably with minimal documents, fewer formalities, and procedures. Partnership with Buddy Loan makes things a lot easier. They guide you towards the right path and help you get the required money comfortably.
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Frequently Asked Questions
Q. How Much Money Can I Borrow When I apply for IDFC Personal Loans?
A. The IDFC bank allows you to borrow funds from 20,000 to 40 lakhs. But you must keep in mind that the bank will look at a wide range of factors to determine the actual loan amount. It may include your present income status, financial condition, credit scores, pending debt, etc. Ideally, you must get a sufficient loan amount for your needs & repayment doesn’t put an additional burden on the monthly budget.
Q. What Are Convenient Ways to Repay the Borrowed Funds?
A. The bank will decide the loan EMI depending on a wide range of factors. You can repay the loan via online transfer, post-dated cheques, and cash. Choose any method of repayment with which you are comfortable.
Q. What are the Chances for Loan Approval If I have a bank account With IDFC Bank?
A. If you have a bank account with IDFC, the verification process gets completed in a short time. Then, you may get a loan with a preferential interest rate & flexible terms and conditions.
Q. How Much Time the IDFC Bank Will Take to Process My Application & Release the Requested Loan Amounts?
A. Frankly speaking, IDFC is India’s leading business bank, famous for its better-quality services and customer-friendly loan products. So, it receives numerous applications for personal loans. Once you submit your application, the bank representative will respond in 7-10 days. To get a positive response from the bank, make no mistakes in the loan application & supply the correct information. It makes it easier for banks to review your application quickly & get in touch with you accordingly.
Q. What Is The Repayment Tenure of IDFC Personal Loans?
A. You can repay the borrowed money in one to 5 years in equal EMIs. You can also refund the loan early by paying some extra fees to the bank.
