-
Customer care hotline Call 1800 10 888
Are you ready for an upgrade?
Login to the new experience with best features and services
Notifications
-
As per amendment in the Income Tax Rules, PAN or Aadhaar are to be mandatorily quoted for cash deposit or withdrawal aggregating to Rupees twenty lakhs or more in a FY. Please update your PAN or Aadhaar. Kindly reach out to the Bank’s contact center on 1800 10 888 or visit the nearest IDFC FIRST Bank branch for further queries.
-
Activate your Credit Card within minutes and enjoy unlimited benefits
Accounts
Deposits
Loans
- IDFC FIRST Bank Loans
-
Personal Loan
-
Consumer Durable
Loan -
Home Loan
-
Business Loan
-
Professional Loan
-
Education Loan
-
New Car Loan
-
Pre-owned Car Loan
-
Two Wheeler Loan
-
Pre-owned Two
Wheeler Loan -
Commercial Vehicle
Loan -
Gold Loan
-
Loan Against Property
-
Loan Against Securities
-
Easy Buy EMI card
-
Personal Loan
EMI Calculator -
Education Loan
EMI Calculator -
Home Loan
EMI Calculator
Wealth & Insure
Payments
Cards
- IDFC FIRST Bank Cards
-
Ashva :
Metal Credit Card -
Mayura :
Metal Credit Card -
FIRST Millennia
Credit Card -
FIRST Classic
Credit Card -
FIRST Select
Credit Card -
FIRST Wealth
Credit Card -
FIRST WOW!
Credit Card -
Forex Card
-
Deals
-
Debit Cards
-
Co-branded Cards
-
Credit Card
EMI Calculator -
FIRST Corporate
Credit Card -
FIRST Purchase
Credit Card -
FIRST Business
Credit Card
Premium Metal
0% Forex & Travel
Lifetime Free
- Max benefits, Free for life
-
FIRST Classic10X RewardsShoppingNever Expiring Rewards
-
FIRST Millennia10X RewardsShoppingNever Expiring Rewards
-
FIRST Select10X RewardsLifestyle1.99% Forex
-
FIRST Wealth10X RewardsLifestyle1.5% Forex
-
FIRST WOW!RewardsTravelZero Forex
-
LIC ClassicRewardsInsuranceShopping
-
LIC SelectRewardsInsuranceShopping
10X Rewards
- Reward Multipliers
-
AshvaLifestyleMetal₹2,999
-
MayuraLifestyleZero Forex₹5,999
-
FIRST ClassicNever Expiring RewardsShoppingLifetime Free
-
FIRST MillenniaNever Expiring RewardsShoppingLifetime Free
-
FIRST SelectNever Expiring RewardsLifestyleLifetime Free
-
FIRST WealthNever Expiring RewardsLifestyleLifetime Free
UPI Cards
Fuel & Utility
Showstopper
Credit Builder
More
NRI Savings Account
NRI Fixed Deposit
FOREX Solutions
Transfer to NRE
Corporate Account
Cash Management Services
Corporate Lending
Treasury
MSME Accounts
Trade Services
MSME Loan
MSME Solutions
Offers
About Us
Investors
Careers
ESG
The repo rate, set by the Reserve Bank of India (RBI), is a crucial tool in regulating the economy. It directly impacts the interest rates of various financial products, including personal loans. When the RBI changes the repo rate, it influences the lending rates of banks, affecting the cost of personal loans. For those seeking the best personal loan, understanding the repo rate impact is essential. FIRSTmoney smart personal loans by IDFC FIRST Bank stands out as a reliable option, offering competitive interest rates and customised solutions to meet your financial needs.
Understanding what is repo rate?
The repo rate is the interest rate at which commercial banks borrow funds from the Reserve Bank of India. It is a monetary policy tool used by the RBI to control inflation, liquidity, and the overall economic stability of the country. When banks borrow money from RBI at the repo rate, they can, in turn, lend money to customers at an interest rate that is typically influenced by this rate.
Changes in the repo rate can either stimulate economic growth or curb inflation. When the RBI lowers the repo rate, it encourages banks to borrow more, leading to lower interest rates for consumers. Conversely, when the repo rate is increased, borrowing costs rise, and banks may pass this on to consumers in the form of higher interest rates on loans, including personal loans.
The repo rate is a key lever that the RBI uses to steer the economy, directly affecting personal loan interest rates.
How does the repo rate impact personal loan EMIs?
When you take a personal loan, the interest rate determines your Equated Monthly Instalments (EMIs). The repo rate plays a significant role in shaping these interest rates.
When the RBI raises the repo rate, the interest rates on personal loans may rise, leading to higher EMIs. Conversely, when the repo rate is lowered, personal loan interest rates may reduce, resulting in lower EMIs.
So, if you have a personal loan with a variable interest rate, changes in the repo rate will directly impact your EMIs. Fixed-rate loans, however, remain unaffected by repo rate changes during the loan tenure.
What are the key factors that impact personal loan interest rates?
Repo rates:
Credit score:
Loan amount and tenure:
Income and employment status:
Bank policies:
As discussed, the repo rate significantly influences personal loan interest rates.
A higher credit score often results in lower interest rates, while a lower score may lead to higher rates.
Larger loan amounts or longer tenures may attract different interest rates.
Stable income and secure employment can lead to more favourable interest rates.
Each bank has its own lending criteria, which can affect the interest rates offered on personal loans.
Why should you opt for a FIRSTmoney smart personal loan?
IDFC FIRST Bank’s FIRSTmoney smart personal loan is designed to cater to the diverse needs of borrowers. With competitive interest rates, flexible repayment options, and minimal documentation, it offers a seamless and transparent borrowing experience.
FIRSTmoney offers smart personal loans of up to ₹10 lakhs with the flexibility to access top-up loans effortlessly without starting the application process from scratch. In addition, you can repay your loan anytime without paying any foreclosure charges.
To apply for a FIRSTmoney smart personal loan, you must have a credit score of 730 and above and a PAN card.
Whether you need funds for home renovation, medical expenses, or any other personal requirement, IDFC FIRST Bank’s FIRSTmoney smart personal loan is a prudent choice.
Understanding the repo rate and its impact on personal loan interest rates is essential for making informed borrowing decisions. As central bank rates fluctuate, being aware of how these changes influence your loan can help you manage your finances better. IDFC FIRST Bank’s FIRSTmoney smart personal loan stands as a strong contender in the market, offering a reliable and customer-centric solution for your personal financial needs.
Disclaimer
The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.