IDFC First Personal Loan Preclosure Charges Loan

Attractive interest rates, no upfront money for loan processing fee, 12 to 60 months loan tenure period, opportunity to foreclose (chargeable), option for loan insurance and maximum funding for senior employees of organizations (featured bank’s list and based on financial strength and net credit worth of the applicant) are the highlights of loan schemes offered by IDFC First bank.

Interest charged by IDFC First bank on personal loans (lending limit Rs 1 lakh to Rs. 40 lakh) starts from 10.49%. The interest amount is a monthly reducing balance (the outstanding loan amount gets diminished with each EMI payment). The rate charged remains fixed for the entire tenure of the loan.

Foreclosure or preclosure refers to full payment of the loan amount much before the tenure ends. The tenure for personal loans is from 12 to 60 months.

Preclosure of the existing personal loan account is allowed by IDFC First Bank after the payment of 24 EMIs. The customer is charged a certain percentage of money in addition to the current principal loan balance. Foreclosure is chargeable and there is no facility for part payment.  All taxes levied are in accordance with government rules and regulations.

Foreclosure has a charge rate of 5% (plus taxes) on the principal outstanding amount. The facility of foreclosure allows borrowers to save interest money on EMIs. It also gives an edge to CIBIL score of the customer, earning him easier approval for personal loans in future.

The two best options to foreclose an existing personal loan with IDFC First bank is to opt for Balance Transfer to some other bank or opt for Top Up loan from current bank.

With Balance Transfer the borrowers can shift to a new bank with lower rate for EMI. Most banks offer minimal interest rates for balance transfer account.

In case of top up loan, the current bank forecloses the existing account. In the new top up account (availed at the same interest rate) the borrower is disbursed with the existing loan amount along with the extra amount borrowed. A new consolidated, discounted EMI structure is generated after tallying the foreclosed and the new account.

IDFC First Bank gives you multiple choices – General (multipurpose) loan and Consumer Durable Loan. The first addresses urgent financial needs and the second is for paying for purchases of consumer durable products like television, air-conditioner, refrigerator etc.