IDFC First Personal Loan Review: Interest Rate, Eligibility, Apply

IDFC First Personal Loan Review: Interest Rate, Eligibility, Apply

IDFC First Bank offers personal loan products to self-employed individuals and borrowers without a salary account. Additionally, applicants with good credit history can avail some of the lowest interest rates in the market from the lender.

Good for

  • Self-employed individuals
  • Borrowers seeking a large personal loan up to Rs. 25 lakhs
  • Borrowers without a salary account

Bad for

  • Borrowers with a low CIBIL score
  • Borrowers younger than 23 years old

Editor's Rating

4.0/5.0

IDFC First personal loans are among the best for self-employed individuals, as well as borrowers who are seeking to avail a large personal loan. Interest rates can be charged anywhere between 9.20% and 34.00%, making the IDFC personal loan better suited towards borrowers with a good CIBIL score and financial history. In addition, the lender's processing fees and other charges are considerably lower than other major banks, making IDFC First Bank a top choice to consider if you want to minimise your total cost of borrowing.

Summary of IDFC First Personal Loans
Interest rates between 9.20% to 34.00%
Personal loan amounts up to Rs. 25 lakhs
Self-employed eligibility
Personal loans without a salary account available
Top up loans for existing customers
Standard loan tenure range of 1 to 5 years

Table of Contents

What Makes IDFC Personal Loans Stand Out to Borrowers

IDFC First Bank is one of few major lenders to provide personal loans to self employed borrowers, as well as offer personal loan eligibility to borrowers without a salary account. In addition, IDFC First provides a wide range of personal loan amounts. While many banks only fund up to Rs. 15 lakhs, IDFC provides small personal loans as little as Rs. 1 lakh and large personal loans up to Rs. 25 lakhs. If you are an existing IDFC customer, you are also eligible for additional funding from an IDFC Top Up loan.

Read More: HDFC Personal Loan Review | SBI Personal Loan Review

IDFC Personal Loan Interest Rates

The interest rate on your IDFC personal loan is determined by a number of factors, including your CIBIL credit score and existing financial obligations. If IDFC First Bank considers you especially eligible, you can avail a personal loan interest rate as little as 9.20% p.a, which is comparably lower than the market average of 11.67%.

It's important to note that IDFC interest rates can be as high as 34.00% p.a., therefore this personal loan option is best for borrowers who have a good financial history.

Click below to view the estimated total cost of an IDFC personal loan under the lowest interest rate and highest interest rate offered by the bank.

The following example is based on a Rs. 10 lakh personal loan over a 5 year tenure, with a fixed interest rate of 9.20% p.a. Total cost includes processing fee, interest payable, and principal loan amount. Processing fee does not include GST or state tax.

Duration (Years)Processing FeeEffective Interest RateEMITotal Cost
13.50%9.20%₹ 20,856₹ 2,85,267
23.50%9.20%₹ 20,856₹ 5,35,534
33.50%9.20%₹ 20,856₹ 7,85,801
43.50%9.20%₹ 20,856₹ 10,36,068
53.50%9.20%₹ 20,856₹ 12,86,335

The following example is based on a Rs. 10 lakh personal loan over a 5 year tenure, with a fixed interest rate of 34.00% p.a. Total cost includes processing fee, interest payable, and principal loan amount. Processing fee does not include GST or state tax.

Duration (Years)Processing FeeEffective Interest RateEMITotal Cost
13.50%34.00%₹ 34,853₹ 4,53,232
23.50%34.00%₹ 34,853₹ 8,71,464
33.50%34.00%₹ 34,853₹ 12,89,696
43.50%34.00%₹ 34,853₹ 17,07,928
53.50%34.00%₹ 34,853₹ 21,26,160

IDFC Personal Loan Eligibility Criteria

Consider this if you are in need of personal loan financing

Min. Loan Amount Rs. 1 lakh
Max. Loan Amount Rs. 25 lakh
Processing Fee Up to 3.50%
Loan Tenure 1 to 5 years

A potential drawback to the IDFC personal loan is the bank's eligibility criteria, which has relatively strict age requirements. To qualify for an IDFC personal loan, salaried employees must be at least 23 years old and no older than 58 by the time of loan maturity. If you are outside of this age bracket, then you should consider other lenders that have a standard age requirement of 21 to 60 years old.

Self-employed borrowers, on the other hand, should be at least 28 years old and no older than 68. Under self employed eligibility, older borrowers can at least benefit from the high maximum age limit. However, both salaried employees and self employed borrowers will find more flexible age minimums at most other banks.

While IDFC First Bank does not have specific income requirements, they do look for business stability from self employed borrowers. To be eligible for a personal loan, self employed borrowers must have 3 years of business continuity, as well as 2 years of positive profit after tax (PAT). In contrast, salaried employees are not expected to show the same proof of business continuity and, instead, benefit from minimal documentation requirements.

Read more: Axis Bank Personal Loan Review | ICICI Personal Loan Review

IDFC Processing Fees and Other Charges

IDFC First charges a processing fee of up to 3.50% of the loan amount, which is a standard fee among personal lenders in India, though not the lowest in the market. The bank's other charges, like the prepayment penalty and foreclosure fee, are much lower than other banks. While some major lenders will charge up to 5.00% of the outstanding loan amount in prepayment penalty fees, IDFC First only charges 2.00%.

Below, you will find a list of IDFC First fees and other charges that you may come across during your personal loan application process.

FeeAmount
Processing FeeUp to 3.50% of loan amount + GST
Foreclosure Fee5.00% on principal outstanding + GST
Bounced Cheque FeeRs. 400
Repayment Instrument Swap FeeRs. 500
Cancellation or Rebooking Charges1.00% of the loan amount
Overdue Interest2.00% per month or Rs. 300, whichever is higher

IDFC Personal Loan Application Process

IDFC First advertises a 2 minute online application to determine your personal loan eligibility. After completing the application, a customer service representative will contact you to schedule an appointment and collect your personal loan required documents.

Once your application is verified and your required documents are submitted, your personal loan funds will be transferred to your bank account within 2 days. Below, you can find the documents required for both self employed individuals and salaried borrowers to avail an IDFC personal loan.

Required Documents

TypeSelf EmployedSalaried
Proof of Identity (Any one of the following)Passport, Pan Card, Voter Identity Card, Driving License, or Aadhaar CardPassport, Pan Card, Voter Identity Card, Driving License, or Aadhaar Card
Proof of Address (Any one of the following)Ration Card, Passport, Bank Account Statement, Aadhaar Card, Driving License, Electricity Bill, or Telephone BillRation Card, Passport, Bank Account Statement, Aadhaar Card, Driving License, Electricity Bill, or Telephone Bill
Proof of Income2 year's ITR, 2 years P&L and balance sheet, last 6 month's bank statementLast 3 months to 6 month's bank statement showing salary credits, Latest salary slip
Proof of BusinessQualification Certificate or Certificate of Practice (COP), Shop Act License / MOA & AOA / Sales Tax / Vat registration / Partnership DeedNone
Natalia Sanchez-Kumar

Natalia Sanchez-Kumar is a Junior Research Analyst at ValueChampion, specialising in home loans in India. She is a History graduate of New York University and has worked in the area of social impact, Future of Work and socio-technological research in the US and India. She has co-authored policy proposals alongside the International Labour Organisation in Sri Lanka and the Maldives, as well as hosted a data privacy conference with Facebook in New Delhi.