IDFC First Bank, previously known as IDFC (Infrastructure Development Finance Company) is a provider of banking and financial products and services to its customers across the country. Apart from various other banking solutions, IDFC First’s main focus stays on its home loan product. IDFC First bank offers competitive and attractive home loan interest rates that start from 7.00% onwards per annum. Now, let’s gain some understanding of the home loan eligibility criteria that is applicable for all the home loan schemes offered by IDFC First Bank.
A home is one of the first things people think of buying, in their youth – how they want it to look like, what are things they will have in the house, etc. But as they get older, they realize that to make this dream of theirs come true they need money which is not easy to save with the current economy and inflation crisis. It is to help this goal of people, to buy their dream homes that IDFC offers home loans.
A home loan is often a very large amount that you borrow from the bank, for the purpose of buying a home. The EMI also tends to be high and therefore you need to decide beforehand how much an amount of loan you would want, what interest rate you are comfortable paying, and also the tenure of the loan.
IDFC First Bank Home Loan Summary
|Interest Rate||Starting from 7.00%|
|Loan-to-Value Ratio||Up to 90% LTV|
|Loan Tenure||For salaried employees: 30 years|
For self-employed and SEPs: 25 years
|Processing Charges||Up to Rs. 10,000/-|
IDFC First Bank Home Loan Features and Benefits
Factors Affecting Home Loan EMI
Home Loan EMI can be calculated using an online Housing Loan Calculator which takes into account many factors like loan amount, interest rate and the tenure or duration for which you are planning to avail the loan.
- Loan amount – This is the amount you want to borrow to fulfil your home needs. Home loan amount mainly depends on value of the property for which the loan is availed.
Fincity offers Home Loan for amounts as low as Rs. 30 lakhs to as high as Rs. 5 Crores.
- Loan Tenure – Loan tenure is the duration over which a Home Loan is repaid. In practice, a shorter tenure results in higher EMIs but helps you save on the total interest payout of the loan. The longest loan tenure available across banks and NBFC’s in India for buying a home on a loan is around 30 years, subject to the borrower’s current age and retirement age.
- Interest Rate – The Rate of Interest is the interest charged on the borrowed loan amount and is one of the components of monthly EMI along with principal repayment.
Formula for EMI Calculation
Generally, the EMI for a Home Loan is calculated using the given formula:
E = P * r * (1+r) ^ n / ([(1 + r) ^ n] – 1)
In the formula mentioned above,
E = Equated Installment
This is the total obligations required to pay per month
P = Amount of Loan
This can be anywhere between Rs.15,00,000 to Rs.5,00,00,000
r = Rate of Interest
This means the interest rate per month. For IDFC First Bank, this starts from 7.0%
n = tenure in months
Usually, the tenure for a home loan ranges from 15 years to 30 years.
How to Use the IDFC First Bank Home Loan EMI Calculator by Fincity?
You can calculate your home loan EMI almost instantly using the Home Loan Calculator. It is precise and easy to use for anyone. This calculator for Home Loan EMI might require just a few key home loan details from the user to display results.
Here’s an easy guide on how to use the home loan EMI calculator:
Step 1: Input the loan amount you wish to borrow.
Step 2: Input the applicable interest rate for the home loan.
Step 3: Input the tenure over which you will be able to repay your home loan.
As soon as you complete the above steps, your home loan EMI will be displayed along with other details such as total amount payable and also total interest payable.