IDFC First Bank offers mortgage loans with interest rates starting from 9.50% p.a., with flexible repayment tenures of up to 20 years and loan amounts based on up to 70% of the property’s market value. These loans are tailored to meet various financial needs, such as business expansion, education, or personal expenses.
IDFC First Bank provides Loan Against Property (LAP) options, featuring quick approval, minimal paperwork, and flexible repayment plans. Both salaried and self-employed individuals can benefit from these mortgage loans, with the added advantage of top-up loan options for those requiring additional funds.
Table of Contents
Key Features
Feature
Details
Loan Amount
Up to 60%-75% of the property’s market value
Interest Rate
Starting from 8.95% p.a. onwards
Tenure
Flexible repayment tenure of up to 20 years
Processing Fee
Typically 1.00% of the loan amount
Prepayment & Foreclosure
Prepayment allowed with applicable charges
Eligibility Criteria
Criteria
Details
Who Can Apply
Salaried individuals, self-employed professionals, and businesses
Age Criteria
Applicants must be between 21 and 65 years
Minimum Income Requirements
Varies based on location and applicant profile
Property Ownership
The property must be owned by the applicant and be free from any legal disputes
Employment/Business Tenure
Salaried individuals must have a minimum of 3 years of employment; self-employed professionals and businesses should have a stable operational history
Documentation Required
Identity Proof: PAN Card, Aadhaar Card, Passport, or Voter’s ID.
Address Proof: Utility bill, passport, or bank statement.
Property Documents: Title deed, property ownership documents, and latest property tax receipts.
Income Proof: Salary slips, IT returns, bank statements, and Form 16 for salaried individuals. Self-employed applicants need to provide business financials, including P&L statements and balance sheets.
Loan Process
Application: Start by submitting the application online or at the nearest branch.
Document Submission: Provide necessary documents, including property and income proof.
Property Valuation: IDFC First Bank conducts a valuation of the property.
Approval: Once verified, the loan amount is approved.
Disbursement: The approved loan amount is disbursed to the applicant’s account.
Benefits
Lower Interest Rates: Competitive rates compared to unsecured loans.
High Loan Amount: Loans can be availed up to 60%-75% of the property value.
Flexible Usage: Funds can be used for any legitimate financial need.
Extended Tenure: Repayment period of up to 20 years.
Tax Benefits: Potential tax deductions on interest payments under Section 24(b) of the Income Tax Act.
EMI Calculator
How to Use: Input the desired loan amount, interest rate, and tenure to calculate your monthly EMI.
Benefits: Helps in planning and managing your finances by giving a clear picture of the monthly outgo.
Application Process
Step 1: Click on ‘Apply Now’ or visit the nearest branch.
Step 2: Fill in personal and property details.
Step 3: Submit required documents for verification.
Step 4: IDFC First Bank conducts a property valuation and processes your application.
Step 5: Upon approval, the loan is disbursed to your account.
Residential Properties: Includes self-owned homes, apartments, villas, and plots.
Commercial Properties: Office spaces, shops, retail spaces, and commercial plots.
Industrial Properties: Warehouses, factories, and manufacturing units.
Mixed-Use Properties: Properties used for both residential and commercial purposes.
End-Use of Loan
Business Expansion: Funds for scaling business operations or starting a new venture.
Debt Consolidation: Pay off existing high-interest debts.
Education: Financing higher education for children, either domestically or internationally.
Medical Expenses: Covering major healthcare costs or surgeries.
Personal Needs: Funds for weddings, travel, or other personal milestones.
Property Valuation Process
Assessment: IDFC First Bank conducts a professional valuation of the property to determine its market value.
Valuation Charges: Any fees associated with the property valuation are usually borne by the borrower.
Inspection: The bank may inspect the property to ensure it meets eligibility criteria.
Timeframe: Valuation typically takes 7-10 business days from the application.
Tax Benefits
Section 24(b) of the Income Tax Act: Tax deductions are available on interest payments for a Loan Against Property if the funds are used for business or residential property purchase.
Section 80C: Possible deductions on principal repayment if the loan is used to purchase or construct a residential property.
Consult a Tax Advisor: Users are advised to consult with a tax professional for personalized advice.
Loan Top-Up Facility
Eligibility: Existing LAP borrowers can apply for a top-up if they need additional funds.
Benefits: Competitive interest rates, minimal documentation, and quicker processing compared to a fresh loan application.
Usage: The top-up loan can be used for the same purposes as the original LAP, such as business needs, education, or personal expenses.
Loan Transfer Facility
Balance Transfer: Transfer your existing Loan Against Property from another bank to IDFC First Bank to benefit from better interest rates or terms.
Process: Submit your existing loan details, property documents, and financials for assessment.
