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How much can you save on festive shopping with FIRSTmoney?

Key Takeaways

Zero processing fee means the full approved loan amount reaches your account, which can save up to ₹3,500 on a ₹1 lakh personal loan.
FIRSTmoney by IDFC FIRST Bank offers zero processing fee on all loan amounts as a limited-time offer, with loans from ₹50,000 to ₹15 lakh at interest rates starting from 9.99% p.a.
Zero foreclosure charges and interest only on the amount you withdraw keep the overall cost of festive borrowing low.
Before you apply, check your EMI and the annual percentage rate (APR) on your Key Fact Statement, and borrow only what you can repay.

02 Nov 2026 by Team FinFIRST

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Let’s say you have planned ₹3 lakh worth of expenses for Diwali: a new phone, gifts for the family and a short trip. You take a personal loan, but a 3.5% processing fee means only ₹2,89,500 reaches your account. The gap of ₹10,500 will need to come from somewhere else in your festive budget.

A zero processing fee personal loan closes that gap. The full approved loan amount reaches your account, so every rupee you borrow goes towards your plans. This festive season, FIRSTmoney by IDFC FIRST Bank offers zero processing fee on all loan amounts as part of the Grand Savings Carnival, a limited-time offer.

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What is a personal loan processing fee, and how much does it cost?

A personal loan processing fee is a one-time charge a lender collects to cover the cost of assessing and approving your loan. It is usually a percentage of the loan amount, and most lenders deduct it from the amount they disburse.

Processing fees on personal loans can typically range up to 3.5% of the loan amount. On a ₹1 lakh loan, that works out to ₹3,500, so ₹96,500 reaches your account.

Because the fee is deducted upfront, you repay EMIs on the full loan amount while receiving less of it. The fee is also non-refundable, even if you close the loan early. 18% GST applies to processing fees. Some lenders include it in the quoted fee, while others add it on top.

How much can you save with a zero processing fee personal loan?

You can save ₹2,000 to ₹3,500 on every ₹1 lakh you borrow, compared with a typical fee of 2% to 3.5% including GST. On the maximum FIRSTmoney personal loan amount of ₹15 lakh, that is up to ₹52,500 saved.

Loan amount	Typical fee at 2%–3.5% (incl. GST)	FIRSTmoney processing fee (offer)	Your saving
₹1 lakh	₹2,000–₹3,500	₹0	Up to ₹3,500
₹3 lakh	₹6,000–₹10,500	₹0	Up to ₹10,500
₹5 lakh	₹10,000–₹17,500	₹0	Up to ₹17,500
₹10 lakh	₹20,000–₹35,000	₹0	Up to ₹35,000
₹15 lakh	₹30,000–₹52,500	₹0	Up to ₹52,500

*Figures are illustrative. Actual fees vary by lender, loan amount and borrower profile.

That saving can cover a gift budget, part of a festive trip or a home upgrade. And because FIRSTmoney also carries zero foreclosure charges, you save again if you close the loan early.

You can apply 100% digitally on the IDFC FIRST Bank app with just your PAN and Aadhaar numbers, with no paperwork or document uploads. Complete a quick video KYC by showing your original PAN card, and eligible borrowers receive the funds within 10 minutes of approval.

Does zero processing fee mean the loan has no other costs?

No. A zero processing fee removes the upfront deduction, but interest is still the largest cost of any personal loan. Other charges, such as stamp duty or late-payment fees, may also apply.

For example, a ₹5 lakh FIRSTmoney personal loan at starting interest rate of 9.99% p.a. for 36 months has an EMI of about ₹16,132 and total interest of about ₹80,700. The fee saving of up to ₹17,500 is meaningful, but your interest rate and tenure also matter.

The best way to compare loans is the annual percentage rate (APR). APR is the total yearly cost of a loan, including interest and fees. Check the APR and fees in the Key Fact Statement (KFS) before you sign the loan offer.

What festive expenses can a personal loan cover?

A personal loan for Diwali gives you access to funds for multiple festive needs, so you can plan the season in one go. Common uses include:

Gadgets and appliances: a new phone, laptop or television during festive sales.

Home upgrades: furniture, décor or renovation work.

Travel: family trips and festive getaways booked early.

Gifting: gifts for family, friends and colleagues.

Weddings: shopping and ceremonies during the wedding season.

With FIRSTmoney, you can withdraw only what you need from your approved loan offer and pay interest only on that amount. The remaining part of your offer remains available for use whenever you need.

How can you borrow smart with a festive personal loan?

A festive personal loan works best when you plan it around your monthly budget. These tips help you borrow well:

Borrow only what's needed: Choose an amount that matches your planned purchases so you don’t end up borrowing what you can’t repay. In case you need additional funds, withdraw more from your offer later with your FIRSTmoney personal loan.

Check your EMI: Use an EMI calculator to pick the right tenure between 9 and 60 months for an EMI that suits your budget.

Review applicable fees: Compare all the fees including foreclosure charges before you accept a loan offer.

Plan repayment: Keep your EMI date in mind and close the loan early if you have spare funds to save on future interest costs.

Is a zero processing fee personal loan worth it this festive season?

Yes, if you need the funds and can repay comfortably. A zero processing fee saves ₹2,000 to ₹3,500 on every ₹1 lakh and puts the full approved amount in your account. With FIRSTmoney, that saving comes with zero foreclosure charges, so you can keep your festive borrowing short and affordable. With the Grand Savings Carnival, wait no more, and start celebrating your way!

Frequently Asked Questions

How much can I save with zero processing fee on a ₹5 lakh loan?

You can save ₹10,000 to ₹17,500, based on a typical fee of 2% to 3.5% including GST. With FIRSTmoney's limited-time offer, the processing fee is ₹0, so the full approved ₹5 lakh reaches your account.

Does zero processing fee mean the loan has no other charges?

No. You still pay interest on the loan, and charges such as stamp duty or late-payment fees may apply. Check the APR on your Key Fact Statement to see the full cost before you accept the offer.

Who is eligible for the FIRSTmoney zero processing fee offer?

Salaried and self-employed borrowers aged 21 to 60 with a stable monthly income and a CIBIL score of 710 or above can apply. The zero processing fee applies to all loan amounts during the offer period.

Can I repay my festive loan early without charges?

Yes. FIRSTmoney carries zero foreclosure charges, so you can close your loan at any time without paying any penalty.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.

The features, benefits and offers mentioned in the article are applicable as on the day of publication of this blog and is subject to change without notice. The contents herein are also subject to other product specific terms and conditions and any third party terms and conditions, as applicable. Please refer our website www.idfcfirst.bank.in for latest updates.

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