IDFC First Personal Loan EMI Calculator - Jan 2020

Last Updated 06th Jan 2020

Get monthly EMI as low as ₹ 2,187 per lakh on IDFC First Bank personal loan. Personal loan EMI in IDFC First Bank depends upon loan amount, loan tenure, interest rate, monthly salary and company that you work for.

IDFC First Bank Personal Loan Calculator

Loan Amount1 year loan3 year loan5 year loan
₹ 1 Lakh₹ 8,850₹ 3,286₹ 2,187
₹ 5 Lakh₹ 44,249₹ 16,429₹ 10,934
₹ 10 Lakh₹ 88,498₹ 32,857₹ 21,867
Personal Loan EMI Calculator

Personal Loan EMI Calculator IDFC First

  • Personal Loan EMI (or equated monthly instalment) is a fixed amount of money paid by you to IDFC First Bank against the loan taken for repayment of your loan and payment of interest to the bank. Every month, it is due on a fixed day of the month till your loan is fully paid back.
  • IDFC First Bank offers affordable and convenient personal loans with loan EMIs as low as ₹ 2,187 per lakh for a tenure of 60 months and lowest rate of interest at 11.25%.

Personal loan EMI calculator at different tenures

Personal Loan EMI for different loan amounts and tenures @ 11.25% interest rate

Loan Amount (Rs.)2 Years3 Years5 Years
1 Lakh ₹ 4,672 ₹ 3,286 ₹ 2,187
3 Lakh ₹ 14,017 ₹ 9,857 ₹ 6,560
5 Lakh ₹ 23,362 ₹ 16,429 ₹ 10,934
10 Lakh ₹ 46,724 ₹ 32,857 ₹ 21,867
  • From the above table, it can be interpreted that for various loan amounts taken at the lowest interest rate, EMI differs for loans taken at different tenures. Your EMI is higher when you take a loan for a shorter tenure of 2 years and is higher for a longer tenure loan of years.
  • Each EMI includes a component of interest payment and principal repayment. Even as EMIs remain constant, every month, there is a change in the proportion of interest component and principal repaid. With every EMI payment, the proportion of principal repayment in EMI keeps increasing and the interest component keeps reducing.
IDFC First Bank Personal Loan Interest Calculator
Personal Loan EMI for Rs. 1 Lakh loan amount at lowest 11.25% interest rate offered by IDFC First Bank for different tenures
Calculated Results for IDFC First Bank Home Loan EMI 2 years 3 years 5 years
IDFC First Bank EMI for a loan amount Rs. 1 lakh at 11.25% ₹ 4,672 ₹ 3,286 ₹ 2,187
Total amount you pay back to the bank including principal and interest ₹ 1.12 Lakh ₹ 1.18 Lakh ₹ 1.31 Lakh
Interest you have to pay during the loan tenure ₹ 12,128 ₹ 18,296 ₹ 31,220

The above table shows that EMI paid on loan will be lower for a loan taken for a longer tenure. However, your total interest outgo is significantly higher in a long tenure loan. In the above example, if you take a Rs. 1 Lakh loan from IDFC First Bank for 60 years, you pay the lowest EMI of ₹ 2,187. However, you pay an interest of ₹ 31,220 on a Rs. 1 Lakh loan.
In contrast, if you take a Rs. 1 Lakh loan from IDFC First Bank at the lowest loan rate for 2 years, you pay a higher EMI of ₹ 4,672 and pay an interest of only ₹ 12,128 which is less than half of what you pay for a 60 year loan. Hence, it is advisable to choose your loan tenure wisely as longer tenure means high interest expenses.

Factors affecting IDFC First Bank Personal Loan EMI

  • Loan amount – This is the amount that you have borrowed from IDFC First Bank. If you apply for a higher loan amount, your monthly EMI will be high. IDFC First Bank gives a minimum loan of ₹ 1 Lakh, which can go upto an amount of ₹ 40 Lakh.
  • Interest rate - Higher interest rate increases your loan EMI as well as the total cost of the loan. IDFC First Bank personal loan interest rate for salary account holders can be lower than their quote rates, which can reduce the overall cost of loan and EMI. Lowest interest rate offered by IDFC First Bank is 11.25%. However, it is advisable to do complete market research and compare rates online before you apply for a loan.
  • Loan tenure – This is the period in which you can repay your loan in IDFC First Bank. Longer loan tenure means lower personal loan EMI. Generally, IDFC First Bank offers a loan for a maximum tenure of 5 years.

IDFC First Bank Personal Loan Interest Calculator Formula

P*r* (1+r)^n/([(1+r)^n]-1)

Here is an illustration of how IDFC First Bank Personal Loan EMI is calculated:

In the above formula,

P = Loan amount. This can range from ₹ 1 Lakh to ₹ 40 Lakh

r = Rate of interest per month. Current rate is 11.25%

n = tenure in month. For IDFC First Bank, this can be 60 months

How to decide the right amount of EMI?

As a borrower, calculating right amount of EMI is a function of your loan requirement, your monthly income, repayment capacity as well as the amount of monthly instalment you can afford to pay out from your monthly income. As a guide, follow the below steps to estimate the EMI amount that is advisable for you.

  • Decide the amount you need to borrow: It is important that before approaching a bank for loan, you need to estimate the amount of loan you need to borrow. Remember, a personal loan is an unsecured loan that can come at high interest rates and hence, it is advisable to limit your loan amount to the minimum required. Also, based on the EMI you can service, try to opt for the lowest tenure of loans as long tenure loans result in huge interest outgo.
  • Review your current obligations: Before taking a loan, it is advisable to evaluate your current monthly expenses including any EMI obligations that you have on your current loan accounts. The assessment will help you to estimate the amount of EMI you can pay comfortably after taking into account other obligations. Once you arrive at the EMI you can service, you can also decide on the right loan tenure.
  • Calculate your IDFC First Bank personal loan eligibility: Your loan eligibility is a function of an assessment of your repayment capacity based on your monthly income and other fixed obligations.
    • Multiplier based loan amount eligibility - IDFC First Bank calculates your loan amount eligibility by applying a multiplier to your net-take home salary. This is the simplest method for calculating loan eligibility used by banks. The formula used in the loan amount eligibility calculation is: Loan Eligibility = (Your Net Salary) x (multiplier of 9 to 18). The multiplier depends on the bank’s internal categorization of your employer company based on its reputation, stability, size, and growth in turnover.
    • FOIR based loan amount eligibility - IDFC First Bank will also estimate your Fixed Income to Obligations Ratio (FOIR) to ascertain the maximum EMI you can service based on your current income and other monthly expenses. The bank applies a certain ratio to your income to estimate your monthly expenses and then adds your other EMI obligations to calculate your fixed obligations. The proportion of fixed income to your calculated fixed obligations gives your FOIR. IDFC First Bank lends up to a maximum FOIR of 0.50. Based on the FOIR, the bank will also estimate the maximum amount of EMI you can service as a borrower. IDFC First Bank's assessment may be different from your assessment. Any differences in assessment may require you to readjust your loan amount requirement. You may also consider paying back other running short term loans to improve your eligibility.
    • IDFC First Bank will calculate your loan amount eligibility based on the above two methods and will sanction you a lower loan amount arrived at by the above two methods.
Quick guide on IDFC First Bank personal loan
  • Purpose of Loan: IDFC First Bank personal loan is taken to funding medical treatment in case of emergencies, paying additional debts, marriage expenses and other personal finance requirements.
  • Key Features
    • Loan available for both salaried individuals and self-employed professionals.
    • Borrowers within the age group of 23 and 58 years.
    • Loan amount of minimum ₹ 1 Lakh to ₹ 40 Lakh.
    • Loan Tenure 1 to 5 years.
    • Interest rates in the range of 11.25% to 18.50%.
    • Lowest EMI of ₹ 2,187 per lakh.
  • Processing Fees: 1 - 1.5% of loan amount. This is to be paid at the time of loan application
  • Special schemes: IDFC First Bank offers customised personal loan interest rates and schemes for a special category of borrowers, including borrowers working in reputed companies, banks or government employees etc.

Personal loan EMI calculator IDFC First Bank – How it works?

  • IDFC First Bank personal loan calculator are online tools which give out EMI calculations using a combination of loan amount, interest rate and loan tenure.
  • IDFC First Bank EMI calculator considers “reducing balance basis” and assumes that payment of EMI is made in arrears (means interest is charged for the month preceding the EMI payment date) and not in advance.
Personal loan EMI – EMI changes in case of prepayment

In case you prepay your personal loan, the outstanding balance on your loan reduces. In this scenario, IDFC First Bank will allow you to reduce your loan tenure or reduce your EMI. The right decision is dependent on you monthly budget and personal preference. You should opt to reduce your EMI if you want to have a higher monthly spend budget or you should opt to lower your tenure if you want to save on your total interest outgo and want to close your loan quickly. You can calculate the change in your EMI by inputting the outstanding personal loan amount from IDFC First Bank, the interest rate and the remaining tenure in the EMI calculator.

FAQs on IDFC First EMI Calculator

Why should I calculate IDFC First loan EMI before taking a loan?

It is advised to calculate personal loan EMI in advance before taking a personal loan. There are several benefits of calculating your IDFC First Bank personal loan EMI as discussed below -

  • In case EMI comes out to be more than your monthly budget, then you have the chance to apply for a lower loan amount which fits your monthly budget and makes EMI easily affordable
  • If you already know the EMI you have to pay each month, then you can plan your spends accordingly
  • Based on the EMI amount, you can opt for making prepayment of your personal loan in future when you have surplus amount
What is the lowest EMI per lakh offered by IDFC First Bank on personal loan?

IDFC First Bank offers personal loan at 11.25% interest rate for a maximum of 60 months, and hence lowest EMI on per lakh loan amount is ₹ 2,187. However, IDFC First Bank may offer a lower interest rate and EMI for their salary account holders or existing bank customers can vary.

How can I pre close IDFC First Bank personal loan?

You can preclose your IDFC First Bank personal loan by visiting the branch with the required set of documents. Submit the form of preclosure, pay the amount and take the acknowledgement of balance amount that you have paid.

What are the prepayment charges on IDFC First Bank ?

IDFC First Bank offers you an option of prepayment after 6 months at 5% foreclosure charges. Can foreclose after 3 months in case of smart personal loan.

Is there any processing charge on personal loan from IDFC First Bank?

Yes, IDFC First Bank charges a certain amount of processing fee to process your loan application. Currently, IDFC First Bank charges a processing fee of 1 - 1.5% on Personal Loan.

Will I get the personal loan from IDFC First Bank if i have a bad credit score?

No, for taking a loan from IDFC First Bank, an applicant must have a good credit score of 700 and above. Usually, most of the banks avoid giving loans if you have a low credit score.

How does a personal loan repayment happen?

The repayment of a personal loan happens in the form of an EMI (Equated Monthly Installment) through the customer's bank account. The customer is required to present a few post dated cheques and sign an ECS mandate in favour of the bank at the time of loan disbursal.

Can I have a co-applicant while applying for a Personal loan with IDFC First Bank ?

Yes, you can opt for a co-applicant to take a personal loan from IDFC First Bank that will increase your loan eligiblity as the income of the co-applicant is also taken into account.

Can we pay more than EMI in IDFC First Bank personal loan?

If you have funds, then you can pay more than the regular EMI on your loan. This will reduce your interest burden along with the outstanding principal. You can also pay one additional EMI every year to reduce loan tenure and in turn interest amount.

How can I pay my IDFC First Bank loan EMI?

You can pay the EMI on personal loan by using ECS facility or standing instruction. You can also visit the branch and submit the EMI cheque.

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*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