If you are in search of a short-term personal loan, IDFC's personal loans may be a perfect fit. The bank offers loans with tenures as short as 3 months, unlike any other personal lenders in India. Additionally, the bank offers a Smart Personal Loan that allows borrowers to make early payments without any fees.
|Summary of IDFC's Personal Loans|
|Shortest Loan Tenures: 3 to 60 months|
|Interest Rates: 12% to 20%|
|Flexible Repayments with Smart Personal Loan|
Table of Contents
What Makes IDFC Personal Loans Stand Out to Borrowers
IDFC's personal loans are great for individuals that need quick financing. This is because it is the only lender to offer personal loans with tenures of less than one year. Additionally, through the bank's Smart Personal Loan, borrowers are able to make early-repayments (up to 40% of loan amount per year) without a penalty, which is helpful for those individuals that may prefer to get ahead on their loan and reduce their total interest cost. However, IDFC's personal loans are less competitive for longer tenures as their loans charge 12% to 20% annual interest rates, while some of the cheapest loans in India charge 10% to 14%. While this may not sound like a big difference, borrowers can save hundreds of rupees on their monthly payment and thousands over the course of their loan tenure, by choosing one of the cheapest available loans.
Estimated Cost of IDFC's Simple Personal Loans
|Duration (Months)||Processing Fee||Effective Interest Rate||Monthly Payment||Total Cost|
|3||2%||12%||Rs. 34,002||Rs. 4,067|
|3||2%||20%||Rs. 34,451||Rs. 5,352|
|6||2%||12%||Rs. 17,255||Rs. 5,529|
|6||2%||20%||Rs. 17,652||Rs. 7,914|
|*Assuming loan of Rs. 1 lakh, total cost includes processing fee|
Who Can Apply: Eligibility Criteria
Applicants must be between 25 and 56 years old in order to be eligible for IDFC's personal loans. Also, borrowers are required to earn salaries of Rs. 20,000 per month. This makes IDFC a less suitable lender for self-employed or low-income individuals.
Other Charges and Fees
IDFC charges a processing fee of up to 2% of the loan amount, which is a standard fee among personal lenders in India. The bank also charges a number of other fees for loan foreclosure, bounced cheques and disbursement cancellation among other instances. While all of IDFC's fees are similar to those of other banks, we recommend that borrowers aim to avoid fees when possible in order to minimise the total cost of their loan.
|Processing Fee||Up to 2.0% of loan amount|
|Early Redemption Fee||N/A|
|Foreclosure Fee||3% on principal outstanding + GST|
|Bounced Cheque Fee||Rs. 500|
|Repayment Instrument Swap Fee||Rs. 500|
|Disbursement Cancellation Fee||Rs. 500|
|Overdue Interest||2.5% per month|
How to Apply: Application Process
Individuals interested in applying for IDFC's personal loans must fill out an application form and submit the required documentation. These documents include proof of identification, age, address and income. The bank processes loans within 5 days, though it's average application decision is made in just 30 minutes.
Required Documents for IDFC Personal Loan Applications
|Proof of Identification||AADHAR Card , Voter ID Card, Passport, NREGA Job Card or Driving License|
|Proof of Address||Utility Bill or Registered Rental Deed|
|Proof of Age||Pan Card|
|Proof of Income||Last 2 months' Salary Slip, Last 6 months' Bank a/c Statement|
|Other Mandatory Documents||Passport Size Photograph|