Tata Capital

TATA CAPITAL LOAN AGAINST PROPERTY

Apply Tata Capital Loan Against Property @ 10%

Interest Rate

10%-12.50%

Processing fee

Upto 1%

Loan Tenure upto

15 years

LTV (Loan to value)

75% to 90% of property value

About Tata Capital

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 focussed and transparent financial solution to help people realise their dreams. Their pursuance to provide financial services to diverse needs of corporate, retail and institutional customers gave birth to Tata Capital Financial Services.

Tata Capital acts as a holding company and has holdings/investments in subsidiaries other than Tata Group. This is in addition to the host of financial products provided by the Company. Some of the retail products offered by Tata Capital are home loan, car loan, two-wheeler loan, personal loans and Loan Against Property, consumer durable loans and business loans.

About Tata Capital Loan Against Property

Making an investment in a property, either residential or commercial, would be the wisest thing to do. One's property is a priced possession, which can be used as security to get immediate funds through Loan Against Property. Tata Capital offers Loan Against Property to meet business requirements or for any other personal requirement that one should not compromise. Loan Against Property is truly a way to make the best of the wise investment one would have made in the past.

Why Take Tata Capital Loan Against Property?

The advantages of Tata Capital Loan Against Property are:

  • Quick processing: They understand one's need for immediate funds. Be it for personal needs or for business needs, funds, when not available at the time of requirement, is of no use. The Company understands this aspect. That is the reason they process the loan applications quickly with minimum paperwork. One can apply for the loan online, which makes it even simpler and faster.
  • Multipurpose loan: The loan can be utilised as working capital for business, for consolidation of debt, for refinance of self-financed property, for purchase of equipment, and to build the necessary infrastructure to take one's business to the next level.
  • Collateral security: They accept the pre-owned residential or commercial property as collateral security.
  • Overdraft facility: Loan can be in the form of an overdraft facility as well, which can be used for working capital requirements. This will be a revolving facility, which will be reviewed periodically. The amount utilised can be replenished by routing all the business transactions through the account. Interest will be charged only on the amount utilised and on day to day outstanding balance.
  • Pre-qualified top-up loan: If you are a customer of Tata Capital Company Loan Against Property, you are eligible for a pre-qualified top-up loan. In times when it is difficult to get extra funds, this facility is definitely an advantage.

Salient Features of Tata Capital Loan Against Property

The main features of the loan are mentioned below:

  • Purpose of the loan: The loan can be used for any purpose. It can be used as working capital for business, for the renovation of the property, for other investments, for the acquisition of assets, for consolidation of debt or for refinance of self-financed property.
  • Who can apply: Salaried individuals, non-individuals, self-employed professionals, and self-employed professionals, with a regular source of income, can apply.
  • Repayment tenure: Repayment tenure is between 12 months to 180 months. The tenure can be fixed as per one's convenience and affordability to pay EMI. If one can pay a higher EMI, then opting for a lower tenure will reduce the cost of the loan.
  • Quantum of loan: Quantum of loan is between 10 Lakhs to 3 Crores. Quantum depends on the income, repayment capacity, credit score and value of the property. There is a certain Loan to Value (LTV) ratio fixed and the loan will be according to the ratio. Even if the property value is high, the actual loan amount majorly depends on income, repayment capacity, and credit score. The loan quantum will be as per LTV ratio or the amount eligible as per income, repayment capacity, whichever is lower.

Tata Capital Loan Against Property Eligibility Criteria

Tata Capital has stipulated certain eligibility criteria if one has to qualify for the Loan Against Property. It is always better to check the eligibility criteria for the loan before applying for the loan to make further processing simple and easy.

The following is the eligibility criteria stipulated by Tata Capital for loans against property:

For Salaried Individuals:

  • Should be employed in State/Central Government departments, MNCs, Private or Public Limited Companies.
  • Should be confirmed in service and should have a minimum work experience of 3 years in the present job.
  • Should have a minimum income of 2,40,000 p.a.
  • Should be in the age group of 25 years to 60 years

For self-employed professionals

  • Professionals like doctors, architects, and chartered accountants who have been in the profession at least for 3 consecutive years, can apply.
  • The minimum income should be 2,50,000 p.a.
  • They should be in the age group of 25 years to 60 years

For self- employed non-professionals

  • Non-professional in the segment of traders, retailers, and wholesalers, who have been in the business for at least 3 consecutive years.
  • They should have a minimum income of 2,50,000 p.a.
  • They should be in the age group of 25 years to 60 years

For Non-individuals

  • Non-individuals under the segment of Firm, Private, or Public Limited Companies should have been in the business for at least 3 consecutive years.
  • They should have a minimum income of 3,00,000 p.a.
  • Firm or Company should have made cash profit at least for the past 2 years

Factors Affecting the Tata Capital Loan Against Property Eligibility

The main factors affecting the eligibility for Tata Capital Loan Against Property are as follows:

  • Income: Salaried individuals should have a minimum income of 2,40,000 p.a. Self -employed professionals and non-professionals should have a minimum income of 2,50,000 p.a. Firms and Companies should have a minimum income of 3,00,000 p.a., and should have made cash profits for the past 2 years.
  • Age: The applicant should be in the age group of between 25 to 60 years to be eligible for the loan.
  • Payment of loan: Prompt repayment of past loan instalments and credit card outstanding indicate the creditworthiness of the applicant. If one wants to improve eligibility for loan, then they have to develop a habit of paying the loan instalments and credit card dues on time.
  • Relationship with the loan provider: Being a customer of the Company for a long time with a good track record will be rewarded. One can leverage this goodwill to improve eligibility and also to negotiate the rate of interest and other charges that are collected on the loan.
  • Try and avoid impulsive borrowing. The number of loans listed in one's credit report is not viewed favourably by banks if they are too many.
  • A high credit score is a good reputation. Paying all the dues, be it, credit card or loan dues promptly will enable one to score high, which will directly influence the eligibility.

Factors Influencing the Credit Score

The factors that can impact your credit score are:

  • Increased number of unsecured loans: Unsecured loans are available easily as there is no need of collateral security. One gets impulsive while applying for such loans, thus creating a large number of unsecured loans. A good mix of secured and unsecured loans, to a large extent, will improve the creditworthiness of the applicant. An increased number of unsecured loans with no secured loans will bring down the credit score.
  • Multiple loan applications: Frequenting lending institutions in quest of loans is not a good practice. Too many enquiries reflected in the credit report will bring down the credit score.
  • Delayed payments: The behavioural pattern in respect of repayment towards existing loans and credit card dues will impact the credit score. Repaying loan instalments and credit card dues on time will improve the credit score. If payments are delayed, then the credit scores will decline. It is a good practice to plan finances to provide sufficient funds on the due dates for these payments.
  • Usage of credit limit: Usage of credit card will speak for the finance management of an applicant. Erratic use of credit card, which may lead to using up the entire limit or at times even over and above the limit, is not a good sign. This will impact the credit score in a negative way.

Decline of a Loan Proposal - Reasons

Sometimes, in spite of having a score above 700 and all other eligibility criteria being satisfied, the loan proposal may be rejected. The main reasons for the rejection are:

  • One should never be under the impression that their track record has improved for the past few years and since the credit score at present is good, the loan will not be rejected. The details of credit history in the report of CIBIL will be retained for 5 years. So, during the past five years, if one has defaulted in loan repayments and credit card dues, the same will be seen in the report. If, for any reason, there are remarks like "settled", "written off" or "loan past due" in the report, then there are chances of the proposal being rejected. These remarks indicate that at one point of time the applicant had financial crisis and recovery had been impossible and so the loan was "written off" or "settled".
  • Sharing the same address with many persons as in the case of shared accommodation can become one of the reasons for the rejection of the proposal. If anyone of them has delayed loan payments beyond an acceptable period, and the applicant's loan application has an identical address as that of the defaulting candidate, then there are chances of the loan application being rejected. Lending institutions have a list of addresses and ID details of defaulting parties with which they cross-check before sanctioning a loan.
  • The guarantee of a person with a low score can become a hindrance during the loan sanction process.
  • The debt to income ratio stipulated depending on the lender. Fitting into this requirement is essential to qualify for a loan.
  • The impulsive borrowing practice of an applicant is not acceptable to the lenders. Such borrowers are considered as candidates with high-risk, which is not favourable to the lenders.

If all these aspects are taken care of and steps taken to improve them, then the chances of loan application being considered will be bright.

Tips to Increase the Tata Capital Loan Against Property Eligibility

The eligibility can be improved if you take care of the following things:

  • A clean record: A good credit score can be built by being disciplined in paying existing loan instalments and credit card dues. Avoid using the credit card erratically. Going overboard in using the credit limit to the maximum is common if one does not keep a track on expenditure. Using the credit card limit to the maximum or sometimes beyond the limit will impact on one's credit record.
  • Loan tenure: The flexibility to choose EMI according to the convenience of the applicant is available. One should make use of this facility and choose an EMI, which is affordable so that it does not become an added burden to the monthly expenses.
  • Creditworthiness: Aiming to keep the credit score at its best is always recommended. Creditworthiness and repayment capacity is measured by one's credit score. The higher the score, the better it is.

Documents Required for Tata Capital Loan Against Property

The documents to be submitted are mentioned below:

For Salaried employees

  • Duly filled application form for Loan Against Property and two passport size Photographs
  • Photo ID proof, such as the applicant's Passport/ PAN Card/ Voter ID/ Driving License
  • Proof of Address, such as Registered Rent Agreement/ Leave and License/ Utility Bill of at least three months/ Passport.
  • Proof of income, such as last 6 months' salary slip, Form 16 of 2 years, bank statement of at least last 6 months that reflects salary being credited or EMI being debited.
  • Title deed of property, like past title chain. For e.g. - conveyance deed, allotment letter, sales deed, latest property tax receipt, possession letter, copy of the approved plan of construction or extension.

For Self-Employed

  • Duly filled application form for Loan Against Property along with 2 passport size photographs of the applicant.
  • Proof of residential address, such as Registered Rent Agreement/ Leave and License/ Utility Bill of at least 3 months/ Passport.
  • Proof of identity, such as the applicant's Passport/ PAN Card/ Voter ID/ Driving License
  • Proof of Business, like GST registration/ company's incorporation details, address proof of the business accounts, and balance sheets showing profit and loss statements, which have been certified by a CA, the proof of the business's existence a copy of the partnership deed, and business profile
  • Title deed of property, like past title chain. For e.g. - conveyance deed, allotment letter, sales deed, latest property tax receipt, possession letter, copy of the approved plan of construction or extension.

Tata Capital Loan Against Property Interest Rate

Tata Capital offers a competitive rate of interest and it starts at 10.5%. The interest fixed will depend on income, credit score, repayment tenure opted, and the relationship with the Company. If one has been dealing with the Company for a long time, then they can leverage the goodwill to negotiate interest rates. Interest can either be fixed rate, which will be reset every 3 years or floating rate, which will keep changing as and when the Company changes the rates.

Tata Capital Loan Against Property - Fee and Charges

The charges applicable on the loan are as given below:

Type of Charge Description

Processing fee

  • For loan up to 30 Lakhs: 2% of the loan amount + GST
  • For loan above 30 Lakhs and up to 50 Lakhs: 1.5% of the loan amount + GST
  • For loan above 50 Lakhs HE: 1% of the loan amount + GST
  • For loan above 50 Lakhs HE Plus: 1.25% of the loan amount + GST

Application fees

  • For loan up to 3 Crores: 3,000 + GST
  • For loan above 3 Crores: 5,000 + GST

Part prepayment charges

  • Part prepayment can be made only after a lock in period of 9 months
  • After 9 months, part prepayment can be made up to a maximum of 25% of the principal outstanding, during the entire tenure of the loan, with payments to be made in 2 tranches at the maximum.

Foreclosure charges

4% of the outstanding principal + GST

Foreclosure charges for Top Up Loan

4% of the outstanding principal + GST

Foreclosure charges for CCOD cases

4% of the amount of dropdown limit + GST

Foreclosure charges, if done within lock-in period

 

Lock-in period charges (Prevailing ROI x Principal Outstanding on the date of Foreclosure x Balance Lock-in) + Foreclosure charges (4%) + GST

Penal/additional interest

3% on Overdue Amount p.m. + GST

Statement of accounts

  • Nil for soft copy
  • 250 + GST for branch walk in

Payment bounce charges

2,000 + GST

Charges for CCOD annual maintenance

10,000 + GST

Mandate rejection service charge

  • 450 + GST
  • Charges will be levied on EMI Due date in case the account doesn't have an Active mandate after the exhaustion of the given PDCs or post-dated cheques.
  • The charge will be applied each month until there is an Active Mandate, linked to the account.

Charges for loan cancellation

25,000 + GST

Duplicate repayment schedule

550 + GST

Duplicate NOC

550 + GST

Foreclosure letter charges

500 + GST per request

Instrument swap charges

550 + GST

Charges for document retrieval

5,000 + GST

One-time maintenance charges

2,000 + GST

Charges for LOD statement request

1,000 + GST per request

Charges for final/ provisional interest certificate request

200 + GST per request

Charges for other statements request

500 + GST per request

Legal and technical charges

  • For loan up to 1 Crore: 6,000 + GST
  • For loan above 1 Crore: 11,000 + GST

Stamp duty

At Actuals

 

Broken period interest

At Actuals

How to Apply for Tata Capital Loan Against Property?

One can apply for Tata Capital Loan Against Property in the following ways:

  • By filling an online loan application, one can get instant approval. If one is not able to complete the online application, their customer care team will call back and assist in completing the process.
  • One can call their customer care toll free number and request for a call back
  • There is a virtual assistant provided by the Company 24 x 7 from where real time answers to all queries can be obtained.
  • One can even visit the nearest branch and submit the loan application with supporting documents.
  • Through MyMoneyMantra.com

Why Apply for Tata Capital Loan Against Property from MyMoneyMantra?

The applicant has decided to apply for Tata Capital Loan Against Property on finding this the best option after a thorough market research. The actual ordeal begins now. The loan application has to be submitted along with relevant documents. After verifying the KYC documents and income documents, if the applicant is found eligible, legal scrutiny of the property documents by panel advocate will be done. To arrive at the value of the property, valuation of the property by panel valuers will have to be done. All this will take sufficient time and the applicant in the meanwhile will have to make numerous visits to the branch to ascertain the status of the application.

To make the whole process simple and quick, one can apply for the loan online through MyMoneyMantra, a one stop solution for all the financial requirements.

One can apply online through MyMoneyMantra by following the simple steps given below:

  • Access the MyMoneyMantra website and choose Loan Against Property from the dropdown menu under Loans section.
  • All the required details have to be shared and submitted
  • Enter the OTP received on your mobile number
  • Once the Loan Against Property is applied and process initiated, the customer will be contacted by our representatives.
  • Follow up with the applicant for further documentation will be done by the representative and the application will be forwarded to the concerned department of Tata Capital.

Deciding the Right Amount of EMI with Tata Capital EMI Calculator?

EMI Calculator is a tool provided to calculate EMI by providing details of loan amount, interest rate, and repayment tenure. It is necessary to use this calculator before taking a decision on availing the loan to arrive at the EMI that you can afford.

Keep the following information ready for calculating the EMI with Tata Capital EMI Calculator:

  • Intended quantum of loan
  • Rate of interest
  • Repayment term
  • Enter the required details and select the calculate button
  • Variations can be tried out by changing the above components till one arrives at the desired value.

How to Use MyMoneyMantra EMI Calculator?

  • Log in to the MyMoneyMantra website
  • Proceed further by selecting the EMI Calculator
  • The loan parameters to be filled in, which enables computing of Equated Monthly Instalment
  • The calculated EMI will be visible on the screen
  • Interchange the value of the parameters until the desired level of EMI is reached

Tata Capital Loan Against Property - FAQs

What are the benefits of Loan Against Property?

With Loan Against Property one gets access to immediate funds by mortgaging either a residential property or commercial property. The funds can be used for any personal needs or for taking one's business to the next level.

What types of properties will be considered for the loan?

Commercial property (shops, offices etc.), self-occupied residential property or alternate property like residential plots, hospitals, schools, Industry property, hotels etc., will be considered.

Will a property owned jointly be considered for Loan Against Property?

Yes. The co-owners should become co-borrowers for the loan.

Will the processing fee be refunded?

No. The processing fee will not be refunded as expenses are incurred when they process Loan Against Property application. Processing involves scrutiny of one's application, verification of documents, assessing the application and calculating loan eligibility.

What is the maximum loan quantum available for Loan Against Property?

The loan quantum starts from 10 Lakhs and can go up to 3 Crores, depending on one's income, repayment capacity, credit score and value of the property.

What is the maximum tenure allowed to repay the loan?

The maximum tenure allowed to repay the loan is 180 months.

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