Tata Capital Personal Loan: An Honest Review for Customers

While there are various financial institutions that offer Personal Loans these days, Tata Capital Limited is one of the popular NBFCs in the segment. Being a leading Non-Banking Financial Corporation in India, Tata Capital offers feature-rich Personal Loans at attractive interest rates.

Let’s conduct an honest review of Tata Capital Personal Loan below. This will help you make an informed decision for your immediate cash needs.

The Features

Amount available: You get a wide range of Personal Loans from Tata Capital Limited, which ranges from as low as Rs. 75,000 to Rs. 25 Lakhs. Thus you get decent flexibility to borrow as per your requirements.

Interest Rates: The Tata Capital Personal Loan Interest Rates start from as low as 10.99% per annum. Depending on the risk assessment report and customer profile of the applicant, the annual percentage rate (APR) of the loan can range from 11.25% to 19% per annum.

Repayment Tenor: Tata Capital offers you flexible options when it comes to repayment tenor of the Personal Loan. The available repayment tenor ranges between 12 months to 72 months, which is amongst the longest available repayment tenor in the market. Most lenders offer Personal Loans for up to 60 months.

Zero part prepayment charges: If you wish to make a part pre-payment of your Personal Loan, this facility is available with Tata Capital after a period of six months. Moreover, you need not pay any penal charges or additional fees when you avail of prepayment facility once per year, and the pre-payment amount is less than 25% of the principal outstanding. But in case the part-prepayment is more than 25% of the principal outstanding, the NBFC would levy part-prepayment charges of 2.5% plus GST.

Certainly a good relaxation for foreclosing your loan early on! A borrower would enjoy the benefit as long she wants to part-repay the loan. The one planning for full foreclosure has to bear the charge. Though it is an industry norm to levy some fee on full pre-closure, the 2.5% charge on more than the permissible limit is still competitive. It is recommended to prepay for free by abiding by the set norms.

No Collateral: Tata Capital Personal Loan is typically an unsecured loan, and you need not pledge any collateral to secure the loan amount. The absence of collateral requirement expedites the loan sanctioning process.

Overdraft: Tata Capital offers the facility of Overdraft against its Personal Loan. This facility is available to select customers who can avail of additional funds up to an agreed limit. Moreover, the customers need to pay interest only on the amount utilised, not on the amount sanctioned.

Flexibility: The Personal Loans from Tata Capital Limited can be used for any financial requirement that you may have. There is no need for any prior approval from the company regarding the usage of money. Though spending the money on speculative purposes like gambling is not allowed.

Balance Transfer: Customers with existing Personal Loan account with any other financial institution can get their credit balance transferred to Tata Capital. The company offers attractive interest rates and friendly repayment terms as an incentive to most balance transfer applications.

Processing charges: The processing charges levied by Tata Capital against the sanction of a Personal Loan can go up to a maximum of 2.5% of the loan amount plus GST.

Foreclosure: Tata Capital does not allow any foreclosure of a Personal Loan account within the first six months of the sanctioning of the loan. Subsequently, customers opting for a Personal Loan foreclosure need to pay foreclosure charges of 4.5% of the outstanding principal plus GST.

Tata Capital Personal Loan Eligibility

When it comes to ascertaining the Eligibility for a Personal Loan, Tata Capital follows relatively relaxed criteria. The applicant needs to satisfy the various eligibility parameters to qualify for a Tata Capital personal loan. Following are the general factors that determine the eligibility:

Age: The applicant must be at least 22 years old at the time of submission of the application for a Personal Loan. The maximum acceptable age for a customer to be eligible for a Tata Capital Personal Loan is 58 years.

Profession: The facility of a Tata Capital Personal Loan is available only for salaried individuals who are employed with a Government entity or a reputed private limited company.

Monthly Income: The minimum monthly income that the applicant should have to be eligible for a Personal Loan is Rs. 15,000 per month.

Work experience: TCL requires the applicant to have a minimum work experience of one year to be eligible for a Personal Loan. Moreover, the applicant must be working with the current employer for at least the last 6 months.

CIBIL Score: Tata Capital recommends the borrower to have a CIBIL Score of 750+ to be eligible for a Personal Loan. Though, customers with a lower CIBIL score can also get approved depending on their repayment capacity. Customers can also add a spouse or a parent as a co-applicant to improve their Eligibility for a Personal Loan from Tata Capital.

Documents required: Although Tata Capital requires only minimal documents for processing a Personal Loan application, still the customers must provide the following documents:

• Any photo identity proof issued by the Indian government, such as Aadhar, Voter ID, Passport, Driving license, etc.
• Any valid address proof including Ration Card, Passport, or Electricity Bill.
• Income Tax Statement for the last two years with computation of income.
• Salary slips for the last three months along with the bank statement showing credit of salary amount.
• Bank Statements for the last 6 months for all running bank accounts.
• Employment Certificate from the current employer specifying the work experience of one year.
• Cancelled cheques for ECS facility

Processing: Customers can e-apply for a Tata Capital Personal Loan through the company website or through online marketplaces. Once all the documents are uploaded, the verification is automatically processed, and you will receive an instant in-principal approval. After verification of documents is successful, the amount is credited into the customer’s account within 72 hours.

You enjoy extreme financial flexibility with Tata Capital personal for all types of cash shortages. Though it is recommended to compare the lenders and choose the most affordable option.