IDFC Home Loan

IDFC Home Loan

About IDFC

Headquartered in Mumbai IDFC bank is an Indian banking company that forms part of IDFC, an integrated infrastructure finance company. The bank started operations in October 2015. It received a universal banking licence from the Reserve Bank of India (RBI) in July 2015. From November 2015, IDFC Bank was listed on BSE and NSE.

What Is a Home Loan?

Home Loan is offered to individuals who wish to construct or buy a house. The property bought or about to be constructed is mortgaged as collateral until the repayment of the loan is completed with full interest. The repayment of the loan generally depends on the capacity of the borrower. Normally, the home loan tenure ranges between 5 to 30 years. The borrower can opt either for floating type of interest or fixed interest rate. Home loan provides tax benefits to the borrowers.

An Introduction to IDFC Home Loans

IDFC offers a wide range of services in the home loan segment. It is the most preferred bank by all kinds of people for any financial service. Packed with exclusive benefits, IDFC Home Loans are tailor made catering to the needs of various customers.

Advantages of IDFC Home Loans

• Low interest rates
• Low processing fees
• Less paperwork
• No prepayment penalties
• No hidden costs and administrative charges
• Balance home loan transfer

Features of IDFC Home Loan

Objective:

IDFC home loan aims to help millions of people achieve their dream of owning a house.

Loan Amount:

Loan amount up to Rs.10.00 crores or loans up to 85% of the property value

Loan Tenure:

For Salaried: 30 years

For self-employed: 20 years

Prepayment Charges: NIL

Processing Fees:

As applicable and specified in the Terms & Conditions

Interest Rate:

Interest rate starts from 8.5%

Eligibility Criteria:

To avail the home loan from IDFC, you need to have the following eligibility criteria.

For salaried

• You should be more than 21 years of age
• Steady income with minimum 2 years of experience

For self-employed

• You should be more than 23 years of age
• Steady income with minimum 3 years of experience

Documents Required to Apply for IDFC Home Loans

Important documents to be submitted while applying for home loans with IDFC

• Completed loan application
• 3 Passport size photographs
• Proof of identify (photo copies of Voters ID card/ Passport/ Driving licence/ IT PAN card)
• Proof of residence (photo copies of recent Telephone Bills/ Electricity Bill)
• Statement of Bank Account/ Pass Book for last six months
• Form 16/IT returns for the last two financial years for salaried employees
• IT returns for the three years for self-employed professionals
• Property tax receipt
• Proof of business address for non-salaried individuals
• Personal assets and liabilities statement

For guarantor (wherever applicable):

• Personal Assets and Liabilities Statement
• 2 passport size photographs
• Proof of identification as above
• Proof of residence as above
• Proof of business address as above
• Signature identification from his/her present bankers

EMI Payment Methods

Your IDFC home loan can be repaid in following three ways.

Standing Instruction (SI):

If you are an existing account holder with IDFC, Standing Instruction is the best mode of repayment. Your EMI amount will be debited automatically at the end of the monthly cycle from the IDFC account you specify.

Electronic Clearing Service (ECS):

This mode can be used if you have a non-IDFC account and would like your EMIs to be debited automatically at the end of the monthly cycle from this account.

Post-Dated Cheques (PDCs):

You can submit post-dated EMI cheques from a non-IDFC account at your nearest IDFC Loan Centre. A fresh set of PDCs will have to be submitted in a timely manner. Please note Post Dated Cheques will be collected non-ECS locations only.

It is recommended that you opt for either the SI or ECS mode of payment for faster and less prone to error than the use of PDCs.

How to Apply for IDFC Home Loan?

You can either apply online or visit a nearby IDFC branch for the application. You can also download the home loan application form from the IDFC official website, complete the form and submit it the bank representative.

Home Loan and Credit Score

A good credit score is really the starting point to get the best offers on home loans from all lenders, with a score above 750+ you will be able to get flexible repayment tenor, reduced interest rates and save on monthly EMIs.

You can also check your eligibility for a home loan through CreditMantri and apply for it.

IDFC Home Loan FAQs

1. What are processing fees on IDFC Home Loans?

As applicable and specified in the Terms & Conditions

2. Is there penalty for prepaying the IDFC Home Loan? There is no pre-payment charges

3. What is the maximum loan repayment period for IDFC home loans?

For Salaried: 30 years

For self-employed: 20 years.

4. How Can I apply for a IDFC home loan?

You can either apply online or visit a nearest IDFC branch and take the help of the bank’s representative.

5. Does IDFC Bank facilitate balance home loan transfer?

Yes, you can transfer your existing home loan to IDFC Bank.

6. Can I get tax benefits from IDFC Home Loan?

As per Section 80C read with section 80CCE of the Income Tax Act, 1961 the principal repayment up to INR 150,000 on your home loan will be allowed as a deduction from the gross total income subject to fulfilment of prescribed conditions.