What is the IDFC Personal Loan Lock in Period?

IDFC FIRST Bank generally imposes a lock‑in period on personal loans (particularly the FIRSTmoney Smart Personal Loan). The IDFC Bank personal loan lock in period varies from 6 months to 1 year. It means you cannot prepay or foreclose the loan in full before you’ve paid at least the EMIs before lock-in.

What is the IDFC First Bank Personal Loan Locking Period?

It is usually 6 months to 12 months. Once the lock‑in period ends, full prepayment or foreclosure is permitted. But it may attract a fee depending on the type of loan. However, for pre‑qualified FIRSTmoney loans, foreclosure is allowed any time after disbursement with zero foreclosure charges.

For standard personal loan accounts, foreclosure after 12 EMIs is permitted, but charged at 3% to 5% of the principal outstanding (plus applicable taxes) based on how many EMIs have been paid.

This is all about IDFC locking period for personal loan.

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IDFC FIRST Bank generally imposes a lock‑in period on personal loans (particularly the FIRSTmoney Smart Personal Loan). The IDFC Bank personal loan lock in period varies from 6 months to 1 year. It means you cannot prepay or foreclose the loan in full before you’ve paid at least the EMIs before lock-in.

What is the IDFC First Bank Personal Loan Locking Period?

It is usually 6 months to 12 months. Once the lock‑in period ends, full prepayment or foreclosure is permitted. But it may attract a fee depending on the type of loan. However, for pre‑qualified FIRSTmoney loans, foreclosure is allowed any time after disbursement with zero foreclosure charges.

For standard personal loan accounts, foreclosure after 12 EMIs is permitted, but charged at 3% to 5% of the principal outstanding (plus applicable taxes) based on how many EMIs have been paid.

This is all about IDFC locking period for personal loan.

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Wondering about the

IDFC personal loan lock in period

. IDFC FIRST Bank offers personal loans with various features and benefits, including the option to prepay the loan. However, there is typically a lock-in period associated with these loans.

What is the IDFC Locking Period for Personal Loan?

The IDFC personal loan locking period is the minimum duration for which the borrower must maintain the loan before they are allowed to make any prepayment or pre-closure. For IDFC personal loans, this lock-in period usually ranges from 6 to 12 months, depending on the loan agreement.

During the lock-in period, borrowers are not permitted to make any partial or full prepayment of the loan. This provision is in place to ensure that the bank recovers a portion of the interest costs associated with the loan.

After the lock-in period ends, borrowers can opt to prepay the loan either partially or fully. However, such prepayments may attract prepayment charges, which are usually a percentage of the outstanding principal amount.

These charges can vary based on the bank's policy and the specific terms agreed upon at the time of loan sanction.

The primary benefit of prepaying a personal loan after the lock-in period is the potential savings on interest payments. By reducing the principal amount sooner, borrowers can lower the overall interest cost.

However, it is crucial to carefully review the prepayment terms, including any associated charges, to ensure that the financial benefits outweigh the costs.

To initiate the prepayment process, borrowers typically need to submit a request to the bank and pay the outstanding dues along with any applicable charges. The bank will then update the loan account accordingly. This is all about the IDFC First Bank personal loan locking period.

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