Overview of Tata Capital Personal Loan
Tata Capital offers personal loans designed to meet any personal monetary requirement one could have. Personal loans offered by Tata Capital come with flexible repayment options and extremely competitive interest rates, ensuring their loans do not become a burden on a borrower. A simple and hassle free loan application process and attention to customer needs make Tata Capital Personal Loans one of the best choices when it comes to personal loans in India.
Tata Capital Personal Loan Interest Rates
Interest rates on Tata Capital Personal Loans vary depending on factors like purpose of loan, income, borrower background, previous associations with the organisation, etc. Interest rates for the year 2015 range from 13.50% per annum to 18% per annum, based on different criteria. Tata Capital offers the option of repaying a loan in flexible EMIs, which along with competitive interest rates ensure that a borrower is not financially over-burdened to repay a personal loan. Interest rates calculated by Tata Capital depend on certain classifications, which can be changed according to its discretion.
Tata Capital Personal Loan Interest Rates 2017
| Particulars |
Salaried |
Self-Employed |
| Interest rate |
11.99% to 19.00% p.a. |
11.99% to 19.00% p.a. |
| Loan Amount |
Minimum: Rs.75,000 Maximum: Rs.15 lakh |
For professionals:
Minimum - Rs.3 lakh
Maximum - Rs.20 lakh
For businessman:
Minimum - Rs.75,000
Maximum - Rs.15 lakh
|
| Loan Tenure |
12 to 72 months |
12 to 48 months |
| Lowest EMI |
NA |
Rs.8,163.49 for professionals (calculated at lowest loan amount taken for the maximum loan tenure at minimum interest rate). |
| Processing Fee |
Minimum: Rs.999 + GST. (Can go up depending on the loan particulars). |
Minimum: Rs.999 + GST. (can go up depending on the loan particulars) |
| Age |
21 to 58 years |
25 to 65 years |
| Prepayment Charges |
No part pre-payment charges after 180 days.
Within 180 days, no charges for payment up to 25% of your outstanding principal amount.
Payment of more than 25% of the outstanding principal will attract 2% prepayment charge.
|
No part pre-payment charges after 180 days.
Within 180 days, no charges for payment up to 25% of your outstanding principal amount.
Payment of more than 25% of the outstanding principal will attract 2% prepayment charge.
|
| Foreclosure Charges |
4.5% of the principal outstanding at the time of foreclosure + GST. |
4.5% of the principal outstanding at the time of foreclosure + GST. |
How to calculate interest/EMI on your Tata Capital Personal Loan
Knowing the EMI amount is a crucial factor in personal loans, as it allows an individual to plan his/her resources accordingly. Calculating the EMI on your Tata Capital Personal Loan is a simple task, thanks to Bankbazaar. Borrowers can log onto the BankBazaar website and enter the details of their loan (tenure, amount, interest rate) in the EMI calculator. The calculator will process the required details and display the EMI to be paid.
An amortization table offers a systematic breakdown of the entire loan repayment process, indicating the variation between the Principal and Interest component for a particular loan. Post each EMI payment the principal amount reduces and it is this lowered principal amount which is used to calculate the interest for the next term.
Example: Mr. Kumar avails a personal loan of Rs 1 lakh at an annual interest rate of 13.5% from Tata Capital. He opts for a repayment tenure of 5 years, which means he has to pay an EMI of Rs 2,301 per month. The table below highlights the entire loan repayment timeline, providing insight on the amount he would need to pay every year in order to clear the loan.
Loan Amortization Table
| Year | Principal paid (Rs) | Interest paid (Rs) | Balance amount (Rs) |
| Year 1 | 15,019 | 12,593 | 84,981 |
| Year 2 | 17,176 | 10,435 | 67,805 |
| Year 3 | 19,644 | 7,968 | 48,161 |
| Year 4 | 22,467 | 5,145 | 25,694 |
| Year 5 | 25,694 | 1,917 | 0 |
Factors affecting your Tata Capital Personal Loan Interest Rates
There are multiple factors which can affect the interest rates you end up paying for a Tata Capital personal loan, some of which are mentioned below.
- Loan tenure – The tenure of a personal loan has a bearing on the interest rates. Loans for a short tenure might attract a higher interest rate compared to loans for longer tenures.
- Repayment capacity – Tata Capital is a financial institution which runs on its ability to get back its investment. The repayment capacity of an individual could change the interest rates charged by the organisation, as they might not charge an exorbitant interest rate to someone who does not have the means to repay such amounts.
- Relationship with Tata Capital – Individuals having a good relationship with Tata Capital might be in a position to reduce their interest rates, owing to their past behaviour and personal standing. It is possible for banks/lenders to reduce interest rates for those who are valued customers and those who have displayed great commitment to their payments in the past.
- Employment details – Interest rates vary depending on the profession of a borrower. Tata Capital charges different interest rates to self-employed and salaried individuals. Salaried borrowers might be charged a lower interest rate as they have a stable source of income and there is little risk of defaulting. Self-employed borrowers might not always have a steady income source and might have to pay a higher interest rate as the organisation could view them as risky prospects.
Note: Interest rates charged by Tata Capital are at their sole discretion and subject to change.
How CIBIL score affects Tata Capital Personal Loan Interest Rate
Tata Capital relies on the CIBIL score of an applicant to gauge his/her loan repayment capacity. A good CIBIL score is an indicator of a good credit history, improving the chances of an applicant getting a personal loan at favourable interest rates. Applicants with low CIBIL scores might be considered risky and Tata Capital might choose to increase their interest rate, to offset any liability on their part.
Key things about Tata Capital Personal Loan Interest Rates
- Tata Capital Personal Loans do not require any security or collateral and do not have any major impact on interest rates.
- Changes in repo rates are likely to impact the interest rate charged by Tata Capital as a change in repo rates would force the organisation to change its lending rate accordingly.
- Interest rates vary according to the applicant and can be adjusted by Tata Capital at its sole discretion.
Details
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