About Tata Capital Business Loan
Tata Capital Limited is a subsidiary of the legendary Tata Sons Limited. It is registered with RBI as Non- Deposit Accepting Non-Banking Financial Company (NBFC). It was established in the year 2007 with an aim to provide a focussed and transparent financial solution to help people realise their dreams.
One of their highly regarded products is Business Loan. Whether you are seeking funds for revamping your business, launching a new store, buying new machinery, increasing working capital or outperforming your competitors, Tata Capital Unsecured Business Loans provide you customised loans that suit your business plan. Tata Capital provides quick and hassle-free funding with flexible repayment options to keep you ahead in business.
|Tata Capital Business Loan interest Rate Sep 2020|
Loan turn around period
7- 30 Days
1.75 % of loan sanctioned + Taxes
Who can apply?
500 per instance
2,990 Per Lakh
A start-up or a business which has been operating for a few years one never knows when the requirement for finance arises. Funding could be for day to day operational expenses in the form of working capital or for the inclusion of infrastructure to expand one's business.
It is very time consuming and stressful to run a business in this competitive world. Tata Capital understands the business needs. That is the reason they have customised loan options for every individual requirement. Tata Capital Business Loan will provide funding for revamping a business, buying new machinery, replenishing inventory, for taking one's business to other cities.
Tata Capital has made the entire process of applying and obtaining a Business Loan simple so as to enable the business owners to invest the time in taking care of their business rather than in the cumbersome process of obtaining a Business Loan.
Why Choose Tata Capital Business Loan?
With Tata Capital Business Loans, you can get quick funds to set-up and expand your business. Their flexible business financing products can help you take your business to new heights.
The main reasons to choose Tata Capital Business Loan are:
- Customised Business Loan - To suit the requirement of every individual business owner.
- Simple and quick processing - They do not bother the applicant with lengthy formalities except for the statutory requirements prescribed by law.
- Competitive interest rates - Everything is tailored as per the borrower's affordability and convenience.
- Flexible repayment - You can choose EMI as per your convenience
- Minimal documentation required - They require simple details like income and purpose of the loan.
Features and Benefits of Tata Capital Business Loan
Here are some of the important features and advantages of the Tata Capital Business Loan to be considered before applying:
- Purpose of loan: Loan provided for setting up, revamping, expansion of business, purchase of machinery, replenishing inventory, for day to day operation expenses in the form of working capital.
- Eligibility: Business Loans are given to both self-employed professionals and non-professionals. Among professionals, exclusive loans for doctors are provided. The loan for doctors is offered at competitive rates. Business Loan is also given to sole proprietorship, partnership firm, private limited companies, closely held public limited companies, societies and trusts, hospitals, nursing homes, diagnostic centres and pathological labs.
The applicant should be in the age group between 25 to 65 years. The business must have been in existence atleast for 3 consecutive financial years and must have made cash profits for the past 2 financial years. The loan should be for the existing business.
- Interest: Tata Capital Business Loan interest rate starts at 19% per annum. Depending on the business, income, loan eligibility and other criteria, the best deal will be offered to the applicant.
- Quantum of loan: You can get a loan amount of minimum 5 Lakhs up to a maximum of 50 Lakhs, depending on your requirement, repayment capacity, and your personal and business credit score.
- No security required: Being unsecured in nature, Tata Capital Business Loans are offered without providing collateral security.
- Repayment tenure: You can repay your Tata Capital Business Loan within the tenure of 12 to 36 months. If you have fixed income then you can choose Fixed EMI for repayment wherein the EMI amount remains fixed throughout the loan tenure. If the income is expected to increase at regular intervals then you can choose structured EMI wherein the EMI is customised as per your requirement. Payment can be made by directly debiting your bank account or by post dated cheques (PDCs) or by electronic clearance system (ECS).
- Pre-closure available: Pre-closure of the loan is allowed. However, you have to pay a pre-closure charge of 5% on the outstanding balance.
Tata Capital Business Loan Interest Rates
The interest rate for Tata Capital Business Loan starts at 19% per annum.
What Are the Different Types of Business Loans?
There are three types of Tata Capital Business Loans. These are:
- Working Capital Loan: This loan provides funds for day to day operations of the business, like purchasing stocks, payment of salary, payment of essential bills, and so on. This will be a revolving facility which will be reviewed periodically. Interest will be applied on the funds utilised. A credit limit will be fixed which can be replenished by carrying out all the business transactions through this loan account. Proceeds through sales should be routed through this account to replenish the utilised amount.
- Machinery Loan: If a business has to run smoothly, machinery is required to conduct business activity. Unlike the loan for day to day operations, this will be a term loan provided to buy new machinery. This has to be repaid in a stipulated tenure.
- MSME and SME Loan: These days there is a lot of thrust towards MSME and SME growth. Special schemes are being designed for MSME and SME sectors with a lot of attractive features. Tata Capital provides loans to these sectors to give the deserved boost to their business
Eligibility for Tata Capital Business Loan
It is always better to be equipped with the eligibility aspect before applying for the Business Loan. Tata Capital has structured eligibility criteria for Business Loan. The applicant should satisfy the following criteria to qualify for the loan.
- The applicant should be in the age group between 25 to 65 years
- The business must have been in existence atleast for 3 consecutive financial years
- The business must have made cash profits for the past 2 financial years
- The turnover should have improved year on year
- The balance sheet must have been audited by a registered CA
- The loan should be used for the existing business
- Business Loans are given to both self-employed professionals and non-professionals
- Exclusive loan for doctors is provided at competitive rates
- Business Loan is also given to sole proprietorship, partnership firm, private limited companies, closely held public limited companies, societies and trusts, hospitals, nursing homes, diagnostic centres, and pathological labs.
Factors Affecting the Tata Capital Business Loan Eligibility
The main factors affecting the eligibility for Tata Capital loan are as follows:
- Income: Your income from the business is an important factor for deciding your Business Loan eligibility. Your business should have earned cash profits for the last 2 years and the turnover should have increased year on year.
- Age: Belonging to the higher age group may reduce your chances of getting Business Loan approval. Your age should be between 25 to 65 years to apply for Tata Capital Business Loan.
- Past Loan Repayment: The creditworthiness of the applicant is measured by the way they have made past loan repayments. If the loan repayments were prompt then the proposal will be considered a favourable one.
- Relationship with the Lender: Loyalty will always be rewarded. If you have a long untarnished relationship with the lender, then you can leverage this goodwill to negotiate on the interest rates and other the charges. Customers with a good relationship will be given preference over the others even while considering the proposal.
- Too Many Loans: Having too many unsecured loans will bring down the credibility because banks infer that with a compulsive borrowing habit one can land into financial stress at any point of time.
- CIBIL Score: CIBIL Score is the primary tool to decide the repayment capacity, credibility and creditworthiness of an applicant. If the credit score is kept healthy by having good finance management, your loan application will be approved instantly. If prompt repayments have been made then the credit score will be good. The benchmark for credit score differs from bank to bank. Usually lenders require a score of 750 and above for Unsecured Business Loans.
Factors Affecting the Credit Score
The important factors that affect one's credit score are:
- Increased Number of Unsecured Loans: A good mix of secured and unsecured loans is a desirable one. Having too many unsecured loans increases the risk factor and so the credit score will be impacted. Too many unsecured loans will bring down the credit score.
- Multiple Loan Applications: It is always better to avoid approaching different banks in short intervals to enquire about loans. Even while applying for a loan online, it is always better to do the eligibility check, EMI calculation to decide the best option. Otherwise one will land up making many enquiries which will bring down the credit score.
- Delayed Payments: Track record with respect to repayment of instalment and Credit Card dues impacts a lot on credit score. If the repayments are prompt the credit score will be good. Delayed payments will bring down the credit score.
- Usage of Credit Limit: One's financial discipline will be judged by the usage of their Credit Card limit. Judiciously using the Credit Card and repaying the dues on time will keep the credit score good. Using the Credit Card to the maximum limit or beyond the limit and delaying the repayment will bring down the credit score.
How to Increase the Tata Capital Business Loan Eligibility?
Here is how you can improve eligibility for the Tata Capital Business Loan:
- A Clean Record: For increasing the chances of qualifying for the loan you should concentrate on building a clean record. By prompt payment of loan instalments and Credit Card dues, you can create a good track record. Make sure that Credit Card utilisation is kept to the minimum and loans availed only if really necessary. This will enable you to manage finance better and avoid delayed payments which result in a clean track record.
- Consider Loan Tenure: The loan to EMI ratio should always be kept in mind while opting for the repayment period. If the availability of residual amount out of the monthly income to service the proposed EMI is not sufficient to fit the loan to EMI ratio, then it is better to opt for a longer repayment period.
- Creditworthiness: CIBIL score is the tool to measure one's creditworthiness. Working towards keeping the score high by making loan and Credit Card dues payment on time will help to create a healthy credit score.
Documents Required to Apply for Tata Capital Business Loan
The following documents should be submitted to apply for the Tata Capital Business Loan:
- Duly filled application form for Business Loan
- 2 recent passport-sized photographs
- Company's KYC Documents: PAN Card, Partnership Deed, Registration of Incorporation, Memorandum & Articles of Association
- Identity Proof: Passport/ Aadhaar Card/ Voter ID/ Driving License
- Certified copy of last 6 months' bank statements
- Business Proof:
- Establishment/ Sales Tax Certificate/ Trade License
- Documents of business ownership
- Sole Proprietorship Declaration/ Partnership Deed's certified copy
- ITwith last 2 years computation
- Balance Sheet and Profit & Loss statement for the last 2 years
- A report with details on how the Business Loan amount will be used
How to Apply for Tata Capital Business Loan?
Here are some of the ways through which one can apply for the Tata Capital Business Loans:
- Apply online through Tata Capital's website
- Call Tata Capital's customer care team on their toll- free number with a request to call back
- Visit the nearest Tata Capital branch and apply for the Business Loan
- Apply for the Tata Capital Business Loan online through MyMoneyMantra
Reasons for the Rejection of Business Loan Application
Normally the details recorded in the credit report will remain for 5 years. A lot might have transpired during these years. There might have been a period when one would have had financial crises and not have paid the loan instalments and Credit Card dues in time and after pursuing for a long-time, the bank might have ultimately written off or settled the dues. In the later years the same might have been set right and the credit score as on date may be a healthy one. Even then, such comments seen in the report will impact the credit decision.
- Credit report comments: The credit scores are based on the repayment pattern of a candidate. If the loans are repaid in time then the scores will be good. However, at times these credit reports bear some remarks like "written off" or "settled". Also, some remarks like days past due will also be there. All these give an inference to the bank that the borrower is defaulting loan repayments and sometimes the lender has felt that it is impossible to recover the dues and hence the dues have been either "written off" or "settled".
- Living in a shared accommodation might seem economical and convenient especially for youngsters who have just got a job and the income is not very high, but such an arrangement might prove a disadvantage at times. If by chance any one of the inmates have defaulted in paying instalments and Credit Card dues and the bank sees the same address in the loan application, then the proposal may be dropped. Banks have the addresses and ID details of defaulters which they normally match with the fresh applications received.
- If one has stood as guarantor for a loan that has defaulted, then this will reflect in your credit history which will work against your loan application.
- If one does not fit into the loan to EMI ratio of 40% to 50%, the loan application may be rejected. The applicant must be very careful while choosing the EMI. Always check EMI with EMI Calculator and arrive at the EMI that suits the loan to EMI quotient before applying for the loan.
- The behaviour of the applicant in terms of borrowing will be indicated by the number of loan enquiry one would have made. If the credit report shows too many enquiries at a short interval, it is not considered good.
If all these aspects are taken care of and steps are taken to improve them then the chances of a loan application being considered will be bright.
Things to be Done to Improve Your Credit History?
Now that you know the various reasons other than the CIBIL score for rejection of loan proposals, ways to improve the credit profile should be figured out. One has to work diligently towards transforming their credit profile which may take some time. It may not happen overnight.
- Do not go to different banks within a short period enquiring for loans. Too many enquiries will affect your credit score. Have a judicial mix of secured and unsecured loans.
- You have to create a credit history to have a good credit score. For this, you have to start availing small loans which can be repaid quickly and on time. Prompt repayment track will improve your credit score.
- Some banks offer Credit Cards against Fixed Deposits. By using these cards, you can create a credit history. Since it is a secured card one may not be tempted to use the card on impulse and the credit utilisation can be kept under the track.
How to Decide the Right Amount of EMI?
- Decide the Amount to Loan: Check EMI with EMI Calculator. Try permutation and combination to arrive at the EMI that fits into the loan to EMI ratio and also that suits your pocket. Based on this the loan amount can be decided.
- Calculate the Business Loan Eligibility: The deciding factors for your loan eligibility are your income, repayment capacity, and credit score. Calculate the eligible amount before applying for the loan.
- Review Your Current Responsibilities: The applicant has to consolidate all the present loan obligations before deciding to apply for the Business Loan. This will help them to choose the right repayment period to fix the necessary EMI in such a way that it is not stressful.
Tata Capital Business Loan EMI Calculator
EMI calculator is a useful online tool to arrive at the EMI one has to pay on a certain amount. By using the EMI calculator and on trying various combinations one can decide the loan amount to avail. While deciding the EMI you should consider how fast you want to repay the loan, how much you can afford towards EMI and what is the interest rate you are comfortable with.
To calculate EMI with Tata Capital EMI calculator you should enter the following information:
- The loan amount you wish to avail
- Interest rate (Tata Capital interest rate starts at 19%)
- Business Loan tenure (Tata Capital loan tenure is between 12 to 36 months)
- Then click the calculator button. The system will show the EMI monthly break up of both interest and principal.
- You can try combinations by either decreasing the loan amount or increasing the loan tenure or vice versa to arrive at the desired EMI.
How to Use Tata Capital Business Loan EMI Calculator on MyMoneyMantra?
- To begin with, visit the MyMoneyMantra website and select the EMI Calculator mentioned under Financial Tools tab.
- Enter loan parameters like interest rate, loan amount, and tenure to compute the EMI
- The EMI will be calculated instantly and the result will be displayed on the screen
- You can try different permutations and combinations to arrive at a suitable EMI option which will not be stressful.
- Business Loan eligibility can also be checked after the EMI is calculated with the help of MyMoneyMantra's website and further apply for the Business Loan online.
Advantages of Pre-paying the Business Loan
- Tata Capital charges up to 5% on principal outstanding plus GST for prepayment of the Business Loan. One should calculate the pre-payment charges versus the saving on interest before making the pre-payment. If the saving on the interest outgo is comparatively higher then pre-payment can be done.
- The outgo towards interest will be considerably reduced if one does part pre-payment or pre-closure. Even better if there are no pre-payment charges. It is always recommended to know the charges that will be levied before choosing a loan.
- Even part-payment is good. Even though saving in terms of interest may not be as high as in the case of pre-closure of the loan, the loan tenure is decreased which results in a proportionate decrease in interest outgo.
- Early closure and part-payment of loans will have a positive impact on one's credit score. So, it is recommended to close the loan as early as possible without stretching it till the last stipulated date.
Change in Tata Capital Business Loan EMI with Pre-payment
Pre-payment is a good option if there are no pre-payment charges collected. One should calculate the saving made on the interest outgo by making the pre-payment. If it is considerably higher than the pre-payment charges one has to pay, it can be considered. By pre-payment of the loan amount the EMI can be restructured in two ways:
- The EMI amount can be stable and the loan tenure can be reduced: The borrower can opt to keep the EMI amount stable and reduce the tenure of the loan payment enabling them to close the loan account earlier and free them of the commitment.
- The EMI amount can be changed, keeping the loan tenure same: For borrowers who intend to lower the burden on the monthly EMI, the option of keeping the loan tenure constant and decreasing the EMI amount is best suited.
Tata Capital Business Loan Processing Fee and Other Charges
|Fees or Charges Levied||Amount|
Cheque Bounce Charges
450 per event
Loan Cancellation Charges
2% of the loan amount or 5,750 (whichever higher)
Charges for Obtaining Duplicate NOC
Payment Mode Swapping Charges
5% of the principal outstanding + GST
Top Up Loan Foreclosure Charges
2% on principal outstanding on existing loan + GST
Duplicate Repayment Schedule Charges
Legal action under Sec 138 of the Negotiable Instruments Act, 1881/ Sec 25 of the Payments & Settlements Systems Act, 2007
Charges for Initiation of Arbitration Proceedings
Charges for Obtaining Receiver Order from a District Court
Charges for Obtaining Receiver Order from the High Court
Charges for Issue of Legal Notice
125 to 300 per notice
Charges for Execution of Award
Other Products Offered by Tata Capital
Apart from Business Loans, Tata Capital also offers the following list of products and services:
- Personal Loan
- Home Loan
- Loan Against Property
- Consumer Durable Loan
- Vehicle Loan
- Loan Against Securities
- Credit Card
- Wealth Management
Tata Capital Business Loan - Customer Care
You can call Tata Capital for any query, including for Business Loans at their following toll-free number:
1800 209 6060
Frequently Asked Questions
Why Tata Capital Business Loan?
The Tata Capital Business Loans are attractive as they come loaded with features such as:
- Pre-approved offers for existing customers
- No security or guarantor for Business Loan
- Flexible repayment options
- Convenient online access to all details regarding Business Loan
- Unsecured loan up to 50 Lakhs
- Minimum documentation
- Quick online approval if required minimum documents provided
What are the documents required to process the Tata Capital Business Loan application?
Following documents are required to process the loan application:
- Duly filled application
- KYC documents of the company including Pan card, registration of incorporation, partnership deed, Memorandum and Articles of Association.
- Balance Sheet and Profit & Loss account statement for the past 2 years
- Income Tax returns for the last 2 years
- Bank statements of the company for the last 6 months
- GST returns for the last 6 months
- A detailed report as to how the Business Loan will be used
Who can get Tata Capital Business Loan?
Business Loans are offered to both self-employed professionals and non-professionals. For professionals like doctors there is a special loan scheme with competitive interest rates and quick disbursal. The loan will also be given to proprietorship firm, partnership firms, private limited companies, trusts, societies, closely held public limited companies, nursing homes, hospitals, and pathology laboratory.
Where can I apply for Tata Capital Business Loan?
Here are the ways to apply for a Tata Capital Business Loan:
- Apply online through Tata Capital's official website
- Call their customer care and request for a return call
- Visit their nearest branch and submit the loan application with documents
- Apply online via MyMoneyMantra
Who is eligible for the Tata Capital Business Loan?
To be eligible for the Tata Capital Business Loan, the applicant should:
- Be in the age group of 25 years to 65 years
- Have been in the business atleast 3 consecutive years
- Have had cash profits for the past 2 years
- Have improved turnover year on year
- Have an audited balance sheet
What is the maximum loan amount available for someone seeking the Tata Capital Business Loan?
Up to a maximum of 50 Lakhs is available as loan amount depending on the applicant's income and credit score.
What is the loan tenure available for Tata Capital Business Loan?
The Tata Capital Business Loan can be repaid within 12 to 36 months.
Is the interest rate fixed or floating for Tata Capital Business Loan?
The interest rate for the Tata Capital Business Loan is fixed and starts from 19%
What is the mode of repayment?
The Tata Capital Business Loan can be repaid through PDCs or ECS or by debit to the bank account.
Why Apply for Tata Capital Business Loan at MyMoneyMantra?
Applying for Tata Capital Business Loan through MyMoneMantra has many benefits, such as:
- We provide complete information about the desired product so that you can decide better
- Our loan specialists are there to guide throughout the entire loan process from application to disbursement.
- We offer free doorstep documents pick-up service
- MyMoneyMantra has a tie-up with 70+ banks and NBFCs. We have a huge range of Business Financing products from various lenders to give you many options to choose from.
- You can check your proposed EMI before applying for the loan by using our EMI Calculator
- The entire loan process is online, quick, and simple
How to Apply for Tata Capital Business Loan at MyMoneyMantra?
You can easily apply for Tata Capital Business Loan through MyMoneyMantra by following these steps:
- Visit the website of MyMoneyMantra
- Go the Loans section and click on Business Loan option
- Enter the required details like your name, loan amount required, employment type, business type, annual income, and so on.
- Enter your mobile number and email address
- Enter the received OTP in the given space
- You will soon receive a call from our Loan Specialists who will further assist you with the loan process.