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IDFC First Home Loan Interest Rates 2020

IDFC First Bank Housing Loan Interest Rate

Last Updated 12th Aug 2020

Current IDFC First Bank Home loan interest rates for Sep 2020 starts at 9.50% p.a. for a maximum tenure of 30 years. Processing fee on its housing loans is Minimum ₹ 5,000 and Maximum ₹ 5,000.

Loan AmountSimple Repo Rate Home Loan Rate
Upto ₹ 30 Lakh9.50%
₹ 30 Lakh - ₹ 75 Lakh9.50%
₹ 75 Lakh - ₹ 3 Cr9.50%
Above ₹ 3 Cr9.50%

Affordable and attractive interest rates

IDFC First Bank Home Loan Interest Rates

IDFC First Bank offers various products on home loan. IDFC First Bank home loan can be used for the purchase of a flat, home construction loan, extension or improvement loan.

Features

  • IDFC First Bank Home Loan Interest Rate starts from 9.50%.
  • IDFC First Bank charges a processing fees of Minimum ₹ 5,000 and Maximum ₹ 5,000.
  • Loan Tenure of Home Loan ranges from 5 years to 30 years.
  • Lowest EMI per lakh on home Loan from IDFC First Bank is ₹ 841 per lakh offered at the lowest interest rate of 9.50% at the longest loan tenure of 30 years.
  • IDFC First Bank allows prepayment of home loans with Nil charges on floating rate loans.
  • IDFC First Bank has an average customer rating of /5.0 from customers who have taken a home loan from the bank.

IDFC First Bank Home Loan Rate

Current IDFC First Bank home loan interest rates are in the range of 9.50% to 12.15%, with special discounted rates for specific categories of borrowers such as women borrowers for whom the bank offers the lowest interest rate of 9.50%. The table below gives the interest rates on various housing finance schemes of IDFC First Bank.

IDFC First Bank Home Loan Scheme Interest Rates
Simple Repo Rate Home Loan9.50% - 12.15%

IDFC First Bank Bank Home Loan Charges

IDFC First Bank Home Loan Processing Fee

The bank charges a minimum processing of ₹ 5,000 and has capped the maximum processing fees at ₹ 5,000. The processing fees is typically non-refundable and has to be paid at the time of loan application. In addition to IDFC First Bank housing loan processing fees, the bank also charges certain technical and legal charges which are explained to the customer during the loan process and are payable once the loan application proceeds further.

IDFC First Bank Home Loan Prepayment

IDFC First Bank charges Nil fees on prepayment of floating rate loans, as per RBI prepayment rules which prohibit banks from charging prepayment penalty on loans with floating rate of interest. Hence, it becomes extremely easy to balance transfer your loan from bank to another. If you decide to foreclose or transfer your housing loan to another bank, you need to apply for the same to IDFC First Bank for a foreclosure while processing your new home loan application with the new bank. However, if you have taken a fixed rate home loan from IDFC First Bank, you will need to pay a foreclosure fees to close your account or transferring it another bank as per your loan agreement with IDFC First Bank.

IDFC First Home Loan Documents

Documents for Salaried employees

  • Filled up loan application form
  • 2 Passport Size Photo
  • ITR of last 2 years
  • Identity Proof - Passport/ Driving Licence/ Voter ID/ PAN
  • Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), Passport
  • Income Documents – 6 months payslip, 2 years Form 16, 6 months bank statement showing salary credit and any EMI debit
  • Property Documents - Past title chain: Conveyance deed, Sales deed, Allotment letter, Possession letter, Latest property tax receipt, Copy of approved plan for construction/ extension

Documents for Self-Employed

  • Filled up loan application form
  • 2 Passport Size Photo
  • Identity Proof - Passport/ Driving License/ Voter ID/ PAN
  • Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old), Passport
  • Business proof such as VAT/ service tax registration, incorporation details in case of companies, business address proof, profit and loss account and balance sheets certified by CA, copy of partnership deed and proof of business existence and business profile
  • Property Documents - Past title chain: Conveyance deed, Sales deed, Allotment letter, Possession letter, Latest property tax receipt, Copy of approved plan for construction/ extension

IDFC First Bank Pradhan Mantri Awas Yojana

The government of India has launched many affordable housing loan schemes to facilitate availing home loan at concessional rates to lower and middle-income groups. Some of the popular schemes are:

a) PMAY or Home Loan Subsidy Scheme: Launched in 2015 to provide houses to the homeless. You can apply for PMAY at IDFC First Bank if you fulfil the eligibility criteria. Know more about PMAY Scheme

b) Pradhan Mantri Gramin Awas Yojana:  It focuses on homeless families and offers pucca houses with basic amenities.

c) DDA Housing Scheme: It aims to provide houses to low, middle, and high-income groups.

d) Tamil Nadu Housing Board Scheme: It started in 1961 to provide houses to varied income groups.

e) Mhada Lottery Scheme: It's a lottery scheme launched every year for buyers of varied income groups.

f) Rajiv Awas Yojana: Launched in 2009 with the aim of bringing illegal construction under the formal system and encouraging slum-free India.

Each of these schemes has its conditions with respect to eligibility, the amount of loan that can be borrowed, and the rate of interest.

Illustration on IDFC First Bank Home Loan Interest Rate
Maximum Annual Percentage Rate (APR)9.5% to 12.15%
Representative example of the total cost of the loan, including all applicable fees
Here is an illustration of the total cost of the loan:
  • Total amount borrowed: ₹ 1 Lakh
  • Time period: 5 years to 30 years
  • IDFC First Bank Home Loan Interest Rate: 9.50% to 12.15%
  • Processing Fee payable to IDFC First Bank: Upto ₹ 10,000. Current offer for processing fee is Minimum ₹ 5,000
  • Fee payable to MyLoanCare: NIL
  • Total Monthly Cost – From ₹ 841 for a 30 years ₹ 1 Lakh loan at 9.50% (lowest rate, longest time period) to ₹ 2,232 for a 5 years ₹ 1 Lakh loan at 12.15% (highest rate, shortest time period). This is inclusive of principal repayment.
  • Total cost payable over loan tenure: ₹ 43,922 for 5 years loan to ₹ 2.13 Lakh for 30 years loan

IDFC First Bank’s terms and conditions as per loan agreement applicable. Short term loans/ pay day loans not available; minimum loan tenure: 5 years. Rate of interest depends upon income, job stability, loan amount, CIBIL score, credit profile, existing obligations, verification and other factors. Credit at sole discretion of IDFC First Bank.

FAQs

What is IDFC First Home Loan interest rate?

IDFC First Home Loan interest rate ranges between 9.50% to 12.15%.IDFC First Bank cuts Home Loan rates by 1.35% from 4%.

Why should I opt for balance transfer to IDFC First Bank?

IDFC First Bank offers competitive Home Loan rates with the best EMI of ₹ 841 per lakh availed at a low-interest rate of 9.50% for a maximum tenure of 30 years. If you are paying an EMI more than ₹ 841 per lakh, you should consider the option for a loan transfer to IDFC First Bank from your existing bank. EMIs can be calculated through IDFC First Bank Home Loan EMI calculators.

Do I get tax benefits on a Home Loan from IDFC First Bank?

As per the Indian Income Tax Act of 1961, residents of India are eligible for tax benefits on the principal amount and interest components of a house finance under section 24 and section 80C of Income Tax Act.

What is the effect of part prepayments on IDFC First Bank housing finance EMI ?

Part prepayments help you in reducing the outstanding amount of loan, which in turn will reduce the interest amount due. After making part payments, paying the same Home Loan EMI will increase your involvement towards the principal amount, which will help you in repaying the loan faster.

How to increase my eligibility on IDFC First Bank housing loan?

If your spouse or family member is earning well, you can make your spouse or family member the co-applicant for your loan. The combination of both of your income will help you in increasing your eligibility to get a loan.

How will IDFC First Bank housing loan rate of interest change in the future?

  • IDFC First Bank offers RBI Repo Rate linked Home Loan which starts at 9.50%. Current Repo Rate of RBI is 4.00%. Bank adds a mark up on RBI’s repo rate which is called IDFC First Bank Repo Rate Linked Lending Rate (RLLR). RLLR can change with change in Repo Rate. An additional spread is applied on RLLR which remains the same throughout the tenure. Bank applies a premium of 5.5% to the Repo Rate to arrive at this rate.
  • When RBI increases rates, the bank may increase its Repo Rate linked Home Loan rates by the same basis points for all existing and new Home Loans. When RBI cuts interest rates, the IDFC First Home Loan interest rates will reduce the interest rates by the same basis points, which will be effective from 1st day of the following month.
  • For instance, if RBI slashes Repo Rate by 0.15%, then IDFC First Bank Repo Rate linked Home Loan rate will cut from 9.50% to 9.35%.

What is the current IDFC First Bank Home Loan rate?

The current IDFC First Home Loan rate starts from 9.50% with a processing fee of Minimum ₹ 5,000 and Maximum ₹ 5,000

Related Topics
Latest Blogs

IDFC First Home Loan News - Sep 2020
  • 2020-07-31 : IDFC First Bank Ltd Q1FY21 consolidated net profit at Rs. 100.07 crore
    IDFC Bank posted a net profit of Rs.100.07 crores for the period ended June 30, 2020, as against Rs.76.36 crores for the period ended March 31, 2020. The company bolstered by retails loans like home, personal, gold, car and two-wheeler loans along with the Business and mudra loans has reported total income of Rs.4413.19 crores during the period ended June 30, 2020 as compared to Rs.4553.07 crores during the period ended March 31, 2020.
  • 2020-01-30 : IDFC First Bank reported a net loss of Rs. 1639 crores for Q3
    IDFC First Bank reported a net loss of Rs. 1639 crores for Q3 ending 31 December. Net Interest Income hiked by 34% to Rs. 1534 crores which was Rs. 1145 crores in the same quarter a year ago. Further, Retail Loan surged by 49% to Rs. 51,506 crores driven by an increase in the sale of Home Loans and Personal Loans.
  • 2019-12-11 : IDFC First Bank revises MCLR rates
    IDFC First Bank has revised its Marginal Cost of Funds Based Lending Rate (MCLR) by 5 bps for December month. For 2 years, the MCLR stands at 9.50% as compared to 9.45% earlier. For 3 years, the rate has been revised to 9.65% from 9.60% earlier. The revised rates have been in effect from December 8, 2019. The revision in MCLR will impact the interest rate of MCLR linked home loans.
  • 2019-06-12 : IDFC First Bank revises MCLR rates by 5 basis points across loan tenures
    Private sector lender, IDFC First Bank has revised its Marginal Cost of Funds Based Lending Rate (MCLR) across all tenure for June. Now the retail loans, including home loans and mortgage loans, would become cheaper. Now for overnight and one month, the rate stands at 8.95% as against 8.90% earlier. For 3 months, the rate has been revised to 9.15% as against 9.10 earlier. While for 1 year, the rate has not , which stands at 9.50%. The revised rates are effective from June 8, 2019.
  • 2019-05-15 : HMSI partners with IDFC FIRST Bank to offer financing solutions
    In a bid to offer financing solutions across the country, Honda Motorcycle & Scooter India (HMSI) has partnered with IDFC FIRST Bank. They have signed a memorandum of understanding (MoU) under which facilities like loans up to 100% of vehicle cost, zero processing fee, down payment of Rs. 999, and extended loan tenure of up to 48 months will be offered to the two-wheeler maker’s customers. Moreover, the lender is also planning to focus on achieving strong growth across its retail loans segment including home loans and mortgage loans during FY19.
*Terms and conditions apply. Credit at sole discretion of lender subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and from collected from public sources. Read More
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