Begin your homeownership journey with IDFC FIRST Bank, where we offer competitive home loan interest rates to make your dream home more affordable. Our attractive rates not only ease your financial liability but also ensure the overall cost of your loan remains within your reach. Read More
At IDFC FIRST Bank, we understand that purchasing a home is one of life's most significant investments and are committed to providing you with tailored financial solutions that align with your budget and aspirations. Discover how our favourable home loan interest rates can turn your homeownership dreams into reality with ease and confidence.Read Less
A home loan from IDFC FIRST Bank helps you gain several benefits like:
You can ensure that you have a home loan tailor-made to your requirement.
To process your loan, it requires only a few documents such as identity and address proof, income proof and property proof.
If you are eligible, you can avail a maximum tenure of 30 years, which reduces your EMI amount.
Type | Home Loan Rate |
Home Loan | ROI starting from 8.85%* |
* T&C apply
When it comes to the home loan interest rates in India, there are several factors that affect the rates. Paying in EMI is the usual repayment option for a home loan, and it becomes affordable with a competitive interest rate. Before you proceed to apply, it is better to check the factors that have an influence on the home loan interest rate, which in turn affects the EMI payable. Some of the factors are:
The benchmark rate, also known as the repo rate, set by the Reserve Bank of India (RBI) is a fundamental determinant of home loan interest rates. This rate acts as a reference point for banks and financial institutions in setting their lending rates. When the RBI adjusts its benchmark rates, it influences the cost of borrowing for banks. A rise in the benchmark rate typically leads to higher home loan interest rates, while a reduction can lower them. Therefore, borrowers should monitor RBI's monetary policy announcements, as these can directly impact the interest rates offered on home loans.
A home loan is usually offered in two types of interest rates: floating and fixed rates. A floating rate of interest changes depending on the RBI’s policy rate changes. For instance, if the repo rate is reduced, banks reduce the home loan interest rate and vice versa. IDFC FIRST Bank offers you home loans on a floating rate, offering the cheapest home loan rates.
The fixed rate will have the same rate of interest fixed at the time of the approval of the loan and will continue until the end of the tenure. The hybrid rate will have the fixed rate of interest first and later the floating one.
A longer tenure gives you the flexibility to comfortably repay your loan by reducing the EMI amounts. With more affordable EMIs, you also effectively increase your eligibility for a higher loan amount depending on your income. However, extended loan tenures increase the total interest payment thus increasing the overall loan cost. Balancing tenure with affordability and long-term financial goals is crucial when selecting a home loan.
The location of the property you are purchasing can impact the home loan interest rate. Properties in high-demand or metropolitan areas may attract lower interest rates due to their higher value and perceived lower risk. Conversely, properties in less developed or rural areas may be subject to higher interest rates as they are considered riskier investments. Lenders assess the marketability and value stability of the property’s location when determining the interest rate.
Your credit profile, including your credit score and credit history, plays a significant role in determining the interest rate on your home loan. A higher credit score reflects a strong credit history and responsible borrowing behaviour, which can qualify you for lower interest rates. Lenders view individuals with high credit scores as lower risk, leading to better rates. Conversely, a lower credit score or poor credit history may result in higher interest rates or even difficulty in securing a loan. Maintaining a good credit score by managing debts responsibly and paying bills on time is crucial for securing favourable loan terms.
The existing relationship with the bank or financial institution can also influence the interest rate offered on your home loan. You may get better terms, including lower interest rates, if you have a strong and longstanding relationship with the bank. This includes having multiple accounts, investments, or previous loans with the bank. A good relationship can enhance your credibility and increase your chances of obtaining a more favourable interest rate.
The benchmark rate, also known as the repo rate, set by the Reserve Bank of India (RBI) is a fundamental determinant of home loan interest rates. This rate acts as a reference point for banks and financial institutions in setting their lending rates. When the RBI adjusts its benchmark rates, it influences the cost of borrowing for banks. A rise in the benchmark rate typically leads to higher home loan interest rates, while a reduction can lower them. Therefore, borrowers should monitor RBI's monetary policy announcements, as these can directly impact the interest rates offered on home loans.
A home loan is usually offered in two types of interest rates: floating and fixed rates. A floating rate of interest changes depending on the RBI’s policy rate changes. For instance, if the repo rate is reduced, banks reduce the home loan interest rate and vice versa. IDFC FIRST Bank offers you home loans on a floating rate, offering the cheapest home loan rates.
The fixed rate will have the same rate of interest fixed at the time of the approval of the loan and will continue until the end of the tenure. The hybrid rate will have the fixed rate of interest first and later the floating one.
A longer tenure gives you the flexibility to comfortably repay your loan by reducing the EMI amounts. With more affordable EMIs, you also effectively increase your eligibility for a higher loan amount depending on your income. However, extended loan tenures increase the total interest payment thus increasing the overall loan cost. Balancing tenure with affordability and long-term financial goals is crucial when selecting a home loan.
The location of the property you are purchasing can impact the home loan interest rate. Properties in high-demand or metropolitan areas may attract lower interest rates due to their higher value and perceived lower risk. Conversely, properties in less developed or rural areas may be subject to higher interest rates as they are considered riskier investments. Lenders assess the marketability and value stability of the property’s location when determining the interest rate.
Your credit profile, including your credit score and credit history, plays a significant role in determining the interest rate on your home loan. A higher credit score reflects a strong credit history and responsible borrowing behaviour, which can qualify you for lower interest rates. Lenders view individuals with high credit scores as lower risk, leading to better rates. Conversely, a lower credit score or poor credit history may result in higher interest rates or even difficulty in securing a loan. Maintaining a good credit score by managing debts responsibly and paying bills on time is crucial for securing favourable loan terms.
The existing relationship with the bank or financial institution can also influence the interest rate offered on your home loan. You may get better terms, including lower interest rates, if you have a strong and longstanding relationship with the bank. This includes having multiple accounts, investments, or previous loans with the bank. A good relationship can enhance your credibility and increase your chances of obtaining a more favourable interest rate.
A home loan interest rate is the cost you incur for borrowing money from a bank or financial institution to purchase a home. It is expressed as a percentage of the loan amount and can be either fixed or floating. The interest rate determines the amount of interest you will pay over the loan tenure, directly impacting your monthly repayments or Equated Monthly Instalments (EMIs).
Home loan interest rates are determined by various factors, including the Reserve Bank of India's (RBI) benchmark rates, the type of interest rate (fixed, hybrid, or floating), , the loan tenure, the location of the property, the applicant's credit profile, and the borrower’s relationship with the bank. Banks also consider their own cost of funds and profit margins when setting interest rates.
For the home loan interest calculation, you can use the home loan EMI calculator on the IDFC FIRST Bank website to know the amount of EMI payable for different loan amounts. By changing the loan tenure and amount, you can arrive at the EMI amount affordable to you. It also helps you calculate the loan amount and interest separately for the entire loan tenure.
There are few ways through which you can reduce your home loan interest, and they are:
The choice between a fixed rate and a floating rate home loan depends on your financial situation and market conditions. Fixed rates offer stability and predictability, making budgeting easier. Floating rates can be advantageous when market rates are expected to decline, offering potential savings. However, they also carry the risk of rising rates. Evaluate your risk tolerance and financial goals before deciding.
IDFC FIRST Bank offers home loans starting at 8.85% per annum*. The loan processing fee is up to 3% of the sanctioned loan amount.
Secure the best home loan interest rate by maintaining a high credit score with timely paying of your bills and managing your debts responsibly. Compare rates offered by different banks, negotiate with your preferred bank, and consider opting for a shorter loan tenure. Additionally, maintaining a good relationship with your bank and choosing a loan with a lower can help you get a more favourable rate.
A fixed interest rate remains constant throughout the loan tenure, offering stability and predictability in your monthly payments. In contrast, a floating interest rate fluctuates with changes in the market benchmark rates, such as the RBI's repo rate. While floating rates can potentially decrease and offer lower interest payments, they also carry the risk of increasing, which can raise your EMIs.
Home loan interest rates for floating rate loans can change every 3 months, depending on changes in the RBI's benchmark rates and the bank's own policies. Fixed interest rates remain unchanged for the entire loan tenure unless you opt to switch to a floating rate. It’s important to stay informed about market trends and RBI announcements to anticipate any changes in floating rates.
There are several factors that influence home loan interest rates, including the RBI's rates along with Repo rates, the type of interest rate (fixed or floating), the Loan-to-Value (LTV) ratio, the loan tenure, the property's location, the applicant's credit profile, and the borrower’s relationship with the bank. Economic conditions, inflation rates, and the bank’s cost of funds also play a role.
Yes, you can negotiate the home loan interest rate with the bank. A strong credit profile, a good relationship with the bank, and comparing offers can provide you with leverage to negotiate a better rate. IDFC FIRST Bank usually offers preferential rates to existing customers with a good track record.
The repo rate is the rate at which the Reserve Bank of India (RBI) lends money to commercial banks. It is a key monetary policy tool used by the RBI to control inflation and regulate the supply of money in the economy. Changes in the repo rate can influence borrowing costs, including home loan interest rates.
Changes in the RBI's repo rate directly impact home loan interest rates, especially floating rates. When the repo rate is increased, banks typically raise their lending rates, making home loans more expensive. Conversely, a decrease in the repo rate usually leads to lower lending rates, reducing the cost of home loans.
Your credit score reflects your creditworthiness and financial discipline. A high credit score indicates a lower risk to lenders, often resulting in lower home loan interest rates. Conversely, a low credit score may lead to higher interest rates or difficulty in obtaining a loan. Maintaining a good credit score by managing debts responsibly and making timely payments is crucial.
While interest rates are a significant component of the cost of a home loan, there may be additional charges such as processing fees, prepayment penalties, and administrative fees. It is essential to review the loan agreement carefully. IDFC FIRST Bank ensures that all the charges are fully disclosed to the applicant for a transparent and hassle-free loan application.
To switch from a fixed to a floating home loan interest rate, contact your bank and inquire about the process. Some banks allow switching with minimal documentation, while others may require a formal application. There may be charges or fees associated with the switch, so it’s important to understand the terms and conditions before proceeding.
A home loan interest rate reset clause allows the bank to periodically review and adjust the interest rate on your loan based on changes in market conditions or benchmark rates. This clause is typically associated with floating rate loans and ensures that your interest rate remains aligned with prevailing market rates.
Refer to the IDFC FIRST Bank Home Loan EMI calculator to determine your monthly instalments. It is quick and easy to use and provides precise results.
Home loan borrowers can avail tax benefits under Section 24(b) of the Income Tax Act, which allows a deduction of up to ₹2 lakh on the interest paid on a home loan for a self-occupied property. For a rented property, the entire interest amount can be claimed as a deduction. Additionally, under Section 80C, borrowers can claim a deduction of up to ₹1.5 lakh on the principal repayment.
A Home Loan, also known as a housing loan, is a sum of money borrowed from a bank or financial organization by an individual to purchase a home.
There are various types of Home Loans. Here are a few examples:
• Home Loan for property purchase: This type of Home Loan can be used to purchase both ready-to-move-in and under-construction properties.
• Home Loan for plot purchase and self-construction of property: This Home Loan is available when you want to buy a plot and build a house on it.
• Home improvement loan: Use this loan to renovate your home.
• Balance Transfer: It’s the transfer of your existing Home Loan from one bank to another.
You can apply for a Home Loan from IDFC FIRST Bank in any of the following ways:
1. Visit our website at: https://www.idfcfirstbank.com/personal-banking/loans/home-loan
2. Visit any IDFC FIRST Bank Loan centre or branch
3. Contact our customer care: 1800-10-888
4. The IDFC FIRST Bank Mobile Banking app
Home Loan co-applicants can include: your spouse, parents, or even major children. All the property owners need to be on the Home Loan structure.
A Home Loan can be availed for a maximum period of:
Up to 30 years for Salaried borrowers
Up to 25 years for Self-Employed borrowers
Eligibility requirements for a Home Loan:
• Age norms: Salaried: 21 - 60 years or retirement age (whichever is earlier), Self Employed: 23 - 70 years.
• Income: The following is the minimum annual income required to apply for a Home Loan:
Salaried: INR 1 lakh
Self Employed: INR 1.5 lakhs
Work Experience: Minimum 3 years.
Transferring your existing Home Loan from another financier to IDFC FIRST Bank is known as a balance transfer.
An existing IDFC FIRST Bank Home Loan customer with a clean repayment track record of more than 9 months can apply for a Home Loan top-up.
Yes, there is a processing fee on your Home Loan. The processing fee will be calculated based on the amount of the Home Loan you have applied for, plus any applicable GST. The processing fees are non-refundable.
The following documents are necessary to apply for a Home Loan from IDFC FIRST Bank:
• Identity proof
• Address proof
• Income proof
• Age proof
• Employment details
• Bank statements
• Property details if you have already finalized it
• Any other documents of obligation (SOA, Sanction Letters, etc.)
The checklist is merely indicative; additional documents may be requested throughout the Home Loan sanction procedure.
Pre-EMI interest is the pro-rata interest charged from the date of disbursement till the first EMI due date.
When we get a completed application form with the required supporting documentation, the below process is initiated:
1) Determination of your financial eligibility for the Home Loan: We assess your eligibility based on our internal policy criteria and based on the documentation which has been submitted.
2) Legal and technical check of the property: We will verify the title documents and undertake a technical appraisal and valuation of the property.
Final eligibility will be the lower of the above 2.
IDFC FIRST Bank now offers floating rates that are linked to an external benchmark rate.
The Reserve Bank of India (RBI) vide its circular no DBR.DIR.BC.No.14/13.03.00/2019-20 on “External Benchmark Based Lending” dated September 04, 2019 has advised to link all new floating rate, personal or retail loans (housing, auto, etc.) to external benchmark. IDFC FIRST Bank has adopted Repo rate as the external Benchmark lending rate with effect from October 01, 2019.
Yes, a change in the benchmark rate (upwards / downwards) will result in a corresponding change in your applicable interest rate and amortization schedule for floating rate loans. Tenure of the loan will be changed by default. The EMI amount will be changed only at the request of the customer.
The Home Loan interest rates are linked to a benchmark rate and will change as an when the benchmark rate changes.
The impact would be applied first to the loan tenure; however, in case the maximum tenure is breached, the impact will be provided on EMI.
The change in your Home Loan interest rate will be communicated to you via SMS and a physical letter.
A provisional interest certificate specifies the principal and interest breakdown for scheduled EMIs for the fiscal year (April to March). This certificate can be used to collect income tax rebates under Sections 80C and 24 of the Income Tax Act. You can obtain this certificate by using the information provided to you after your loan has been disbursed on our website. Please keep in mind that the provisional interest certificate is calculated based on outstanding principal balances, interest rates, and your current EMI; if anything changes during the fiscal year, the figures on the certificate may change; as a result, you should obtain the most recent provisional interest certificate before submitting it.
Yes, you have the option to terminate your application once your Home Loan has been approved. However, the fees paid during the processing of the application is non-refundable.
Apart from the financial and property documents, the following documents will be required for a Balance Transfer Home Loan:
1. The recent foreclosure letter from another bank/HFC/FI referencing the loan account number and account holder's name.
2. Documents certified by BT Bank/HFC and kept by them
IDFC FIRST Bank disburses loans for under / self-construction properties in tranches based on the progress of construction. Every tranche disbursed is known as a 'part' or a 'subsequent' disbursement.
It is not mandatory to buy Home Loan Insurance. The insurance however protects the borrower's outstanding debt in the event of an unanticipated incident during the loan's tenure. Hence, we strongly advise you to obtain Home Loan Insurance to secure your home.
In all circumstances, the property itself, whether purchased or anticipated to be purchased, serves as security for the whole loan term.
The advantages you can enjoy with a Home Loan from IDFC FIRST Bank are:
• Attractive interest rates
• End-to-end digital journey
• Availability of Long-term loans (up to 30 years)
• Customized offers in terms of loan amount and commercials depending upon the customer profile
Yes. You may be eligible for tax benefits on repayment of the principal and interest components of your Home Loan as per below sections of the Income Tax Act, 1961:
• 80C deduction on principal sum of Home Loan,
• 24(b) deduction on interest on borrowed capital and
• 80EEA interest on affordable properties which further provides additional deduction on Home Loan interest payment for first time home-buyers.
Since the benefits may vary year to year, please consult your tax advisor.
IDFC FIRST Bank gives Home Loan amount from INR 5 lakh to INR 10 Crore.
Click here to use our Home Loan EMI Calculator on our website to see how your EMI will be calculated.
IDFC FIRST Bank will finance the Home Loan as per the below % on the property value of your home.
Up to INR 30 lakh: <= 90%.
Above INR 30 lakh & up to INR 75 lakh: <=80%.
Above INR 75 lakh: <=75%.
Yes, you can make a pre-payment on your Home Loan, which would reduce your EMI amount or tenure. The default option will be reduction in tenure. The EMI amount will be reduced only at the request of the customer.
Yes, you can foreclose your Home Loan by paying the remaining balance to the bank. There are no foreclosure charges on floating rate Home Loan.
No, you will not be charged for this change.
Yes
12% p.a. will be applicable. (Applicable interest rate may vary from time to time)
Following charges are applicable: 0.1% of the sanctioned loan amount or Rs.10,000/-, whichever is lower, excluding applicable charges/taxes.
Please contact IDFC FIRST Bank customer care at 1800 10 888 or visit the nearest loan centre branch.
Switching from floating to fixed is allowed only twice during your loan tenor
Once the interest rate is switched from floating to fixed, you cannot switch back to a floating rate for a minimum of three years from the date of the switch
Due to the reset of interest rates, you have the flexibility to choose:
- Enhancement in EMI or elongation of tenor, or a combination of both
- Prepayment, either in part or in full, at any point during the loan tenor
- Foreclosure charges/prepayment penalty (if any) will be applied as applicable.
Conclusion
A home loan can help you own a home of your choice. It keeps you indebted for a long period of 15 or 20 years, and therefore, it is essential to check the home loan interest rates to know the EMI affordable to you. Find the EMI payable on the home loan EMI calculator on the IDFC FIRST Bank website. To learn more about it, click here.
FEATURED
If you are newly married or planning to get married soon, nothing can be more exciting than starting a new chapter in your life by moving into a home that you have purchased together. But did you know that there are many advantages to taking a joint home loan? From increased loan eligibility to greater tax benefits, there are many reasons why you should consider taking a home loan jointly with your spouse.
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