Tata Capital Personal Loan


Usually banks look for a good repayment capacity while providing a personal loan. This could be judged by the bank by taking cognizance of regular income and age of the applicant. The eligible age and the monthly / annual income would also depend on the type of income that the applicant gets – from a job which provides a salary or from a business that a self-employed applicant runs.

If you are salaried, then your age should be between 23 and 58 years, whereas the eligible slab for self-employed persons is between 28 and 65 years of age. The monthly income for salaried people should be Rs. 17000 per month, and higher for people living in metro cities. Since self-employed people have a variable income every month, their turnover should be at least Rs. 40 lakhs per year, and if they are self-employed professionals like doctors or architects, then the minimum eligibility of annual turnover is Rs.15 lakhs. An important parameter for personal eligibility is the CIBIL score, and banks look at a score above 750 to be a par score for a personal loan. Depending on age and income, a personal loan could be for any amount between Rs. 75000 and Rs. 20 lakhs for salaried persons, with self-employed persons being eligible for loans up to Rs. 15 lakhs.

Providers Interest Rate Processing Fee
SBI 12.55%-17.65% 1%-3% of the loan amount + applicable Service Tax
Axis Bank 11.25%-24% 1.50%-2.00% of the loan amount + Service Tax, as applicable
ICICI Bank 11.29%-22.00% Upto 2.50% of the loan amount + Service Tax, as applicable
Tata Capital Bank 11.99% Starts at 999/-
PNB Bank 3.10%-6.10% + MCLR Upfront fees: 1.80%+ST+Edu Cess
Documentation charges
Upto Rs. 2 lac: Rs.270+ ST & Edu.Cess
Over Rs.2 lac: Rs.450+ST & Edu.Cess
For Defence Personnel: Only Upfront fee / No documentation charges.
Bajaj Finserv Bank 14.75% 2.25%-3% of the loan amount
Fullerton Bank 14% Upto 6.5% of the loan amount
IndusInd Bank Starting at 11.49% Upto 2.5% of the loan amount
Standard Chartered Bank Starting at 11.25% Upto 2.25% of the loan amount
Citi Bank 10.99% to 17.99% 0.50% to 3%
HDFC Bank 11.29%-20% Upto 2.5% of the loan amount, subject to a maximum of 25,000 INR and a minimum of 1,000 INR
Kotak Bank Starting at 11.29% Upto 2% + ST + Other levies
HSBC 11.99% Upto 2.5% of the disbursed loan.
Bank of Baroda 11.35% to 14.35% Rs.1,000 to Rs.10,000
Corporation Bank 12.75% to 13.75% 1.50% of the loan amount subject to a minimum of Rs.500/-
UCO Bank Personal Loan 11.35% - 11.60% 1% (min. Rs. 750)
Union Bank 14.40% 0.50% of the loan amount, Minimum of Rs. 500 plus service tax
Bank of India 12% to 14.5% Rs. 1,000 to 10,000 + S.T.
Allahabad Bank 13.10% 1.22% (min. 1228)
Canara Bank 12.75% (Floating) Rs. 1,000 to 5,000
IDBI 12.45% (3 months MCLR + 3.90%) 1% plus service tax
Bank of Maharashtra 12.75% 1.00% of the Loan Amount (Min.:Rs.1000/-)
Andhra Bank 13.05% to 14.30% Nominal
Yes Bank 11.49% upto 2%
Syndicate Bank 14.20% p.a. 0.5% with a minimum of Rs.500 + Service Tax
Vijaya Bank 12.5% to 13.5% 0.25% of the loan amount, Max Rs. 10000 plus service tax
Indian Bank 12.65% to 13.65% Rs. 508 to 0.508%
Federal Bank 17.25%-35% Upto 6.5% of the loan amount
Capital First 12% upto 1.5%
IDFC 11.50% upto 1.5%

What Is A Personal Loan?

A personal loan is a simple and effective way to tide over a requirement of funds. Unlike other loans which are provided for a specific purpose, the lender of a personal does not ask you for the purpose of the money. The loan, which is unsecured (meaning it doesn’t need any collateral), depends on your credit history and repayment capacity, and its approval or approved amount doesn’t depend on what you will use it for. The approved loan amount is credited to your bank account in total, and the repayment, which begins from the next month, is of a fixed monthly amount called EMI. The two things which would affect the EMI would be the tenure of your loan (which usually is from one to five years), and the personal loan rate of interest you are charged. Whether you are salaried or self-employed, banks have personal loan products designed for you. Students, NRIs, pensioners, and senior citizens can also apply for personal loans, and each of these segments would have different eligibility criteria.

When Would You Need A Personal Loan?

There are several situations in which you could need a personal loan. There might be an impending marriage in the family, a medical emergency could have arisen, there could be substantial college tuition fees to be paid, or you might even be planning to go on a long vacation. Instead of coughing up money for all such expenses at once, you could go for a personal loan and repay over the next several months.

What Are The Pros and Cons Of A Personal Loan?

The biggest advantage of a personal loan is that there is no security involved, which also results in the approval process being much faster. It is a much better (read cheaper) option than taking an advance on your credit card, and if used for the purpose of home renovation, it can also offer you tax deductions for the interest repayment. On the flip side, the personal loan is unsecured and hence carries a much higher rate of interest than car or home loans.

What Are The Things To Consider While Selecting A Personal Loan?

The documentation required for a personal loan is not too detailed, and the approval process too takes a few days only. What you should rather spend time on is in comparing the various rates of interest, the amount you are eligible for, and the other charges that will be levied at the time of application or prepayment (foreclosing the loan earlier than its tenure).

How Can One Finance Help You?

What you need is an experienced and unbiased advisor who can help you with the correct selection of lender and also help with the actual application process when you are not sure how to apply for a personal loan. We will fulfil that role for you end to end, using our deep relationships with all major banks, which gives us visibility to the best personal loan offers. We will help you decide which bank is best for personal loan, we will collect your documents and submit them online or in person, and we will also follow up with the bank. In short, we would be a complete loan consultant to you till the amount is disbursed into your account.

Are you looking for Tata Capital Personal Loan? You are in right place to get a personal loan @OneFinance. Tata Sons marks its presence in the financial services space through its subsidiary Tata Capital. Tata Capital is one of the most reputable NBFCs in the country. The trust associated with the Tata brand gets transferred to Tata Capital and its products. The personal loan is one of its most popular products. It helps borrowers to fulfil all their dreams and aspirations with the help of these unsecured loans.

Personal Loan Eligibility

The Tata Capital personal loans are available to salaried individuals employed in certain organizations and also to self-employed individuals. The eligibility of these loans is limited to employees of MNCs, large private companies, and public sector organizations. Tata Capital demands that the applicant should have been working in the organization for at least a year before applying for the loan. The applicant should be at least 21 years old if salaried, otherwise he should be at least 25 years old, and should be below 58 years old if salaried, and below 65 years old in other cases.

A minimum net income per month is laid down by Tata Capital for applicants, which is calculated after deducting all fixed financial commitments (like insurance premiums, EMIs of earlier loans etc.) from the monthly take home salary of the applicant. This net income is fixed at Rs. 20000 per month for salaried individuals, and Rs.2 lakhs per annum for self-employed people. These eligibility criteria for salaried and self-employed individuals have been laid down by Tata Capital in accordance with their reading of creditworthiness for both these segments of applicants.

Documentation

At a very high level, the documents required for Tata Capital’s personal loans involve proofs of identity, address and financial stature. For identity, the applicant can submit a copy of passport, Aadhaar Card, Pan Card, Drivers’ License or Voter Id Card.

A self-employed professional will additionally also have to submit any one document out of these to establish the identity of his business – trade license, partnership deed, MOA, AOA, Board Resolution etc. For address, the list of documents required includes latest utility bills, passport, rental agreement, drivers’ license etc.

A self-employed applicant for the personal loan would additionally need to submit a proof of the address where his business is registered. Recently, Tata Capital has introduced an Aadhaar based KYC verification process which makes the identity and address verification process fast and convenient.

Coming to the financial documents, a salaried individual needs to submit the account statement of his salary account, along with last three monthly salary slips and the present year’s Form 16. On the other hand, a self-employed individual would need to submit the last two year’s ITR (income tax returns) as proof of income, along with his own and his firm’s bank account statements of the last six months.

Tata Capital Personal Loan Interest Rates

Tata Capital offers very attractive interest rates on its personal loans. Depending on the category of borrower, the tenure, and the amount of loan, Tata Capital would charge anything from 13.99% to 17.50% on its personal loans. Tata Capital offers the best interest rates for corporate employees. In case the applicant is going through a company like OneFinance, they can make use of the EMI Calculator to find out what would be their monthly liability towards repayment of principal and interest. Apart from interest that will be charged throughout the tenure of the loan, the borrower would also need to pay a one-time processing fee which would depend on the employment or business profile of the applicant.

Modes of Repayment

The borrower can choose to repay the personal loan in any one of three possible flexible EMI methods. The first is the Step Up plan in which the EMI payable every month can be increased every year, based on anticipated increase in repayment capacity. The opposite is the Step Down plan in which the EMIs would be higher initially, but reduce gradually as the tenure of the loan progresses. The third is the Bullet plan which allows the borrower to make part repayments at certain points when he gets some additional income.

Tata Capital also offers the facility of prepayment of a part of the loan. The prepayment amount can be up to 25% of outstanding amount, and beyond that a fee of 2% plus taxes would be charged. The prepayment can begin after at least 6 months of the loan disbursement has elapsed.

If the borrower moves for pre-closure of the loan after 12 months of the loan has elapsed, then no foreclosure charges would be levied.

Frequently Asked Questions

  • Is it possible to get an additional loan?
  • In case you already have an existing personal loan from Tata Capital, and at least 8 instalments or up to 18 instalments of the repayment have been already paid, then you can apply for a top up loan on top of the earlier loan.
  • Is there any business continuity requirement for self-employed applicants?
  • Yes. First, the applicant should have been a resident in the same city as the business’s registered address for at least 3 preceding years. This will need to be validated by a suitable address proof. The business should also have a vintage of at least three years, and the applicant himself should have a work experience of three years.
  • Do Salaried and Self Employed Individuals have the same amount and tenure of loan allowed?
  • No, Tata Capital treats salaried individuals and self-employed individuals differently. In terms of maximum loan amount permissible, it is Rs. 25 lakhs for salaried individuals but 15 lakhs for self-employed individuals. The maximum loan tenure is 6 years for salaried individuals and 4 years for self-employed individuals.
  • Are there any other charges apart from processing fees and prepayment charges?
  • Yes, there are several additional charges for specific service requests of the borrower. For example, you would need to pay charges for late payment, cheque bounce, legal notice, loan cancellation etc.
  • How can I get guidance on the application and documentation?
  • OneFinance has tie ups with Tata Capital and can help you with the application process from the comfort of your home.

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