About Tata Capital Personal Loan
The fixed amount paid by the borrower against the Personal Loan taken is called Personal Loan EMI (equated monthly instalment). This amount is towards repayment of the Personal Loan. Every month, the borrower has to pay the fixed amount on the fixed date of every month to the Tata Capital throughout the loan duration.
The Tata Capital offers Personal Loans to individuals to help them meet their various financial needs. Tata Capital offers both secured and unsecured loans. The secured loan requires the submission of the collateral, whereas, unsecured loan such as Personal Loan does not require any collateral. It is very important to be aware of all the loan eligibility criteria before applying for the Personal Loan.
Why Use an EMI Calculator?
After the decision of availing a Personal Loan is made, it is advisable to check the monthly payable EMI to get a better idea of the future expenses. The EMI amount helps you to decide the loan amount you would like to apply for based on your monthly income and expenses.
The Tata Capital offers the lowest EMI of 1,916 per Lakh on the Personal Loan. The EMI on the Personal Loan depends on the numerous factors such as loan tenure, interest rate, loan amount, monthly income, employer of the borrower, and so on.
Personal Loan EMI Calculator Results for Different Loan Tenures
Here are the Personal Loan EMIs calculated using the EMI calculator for different tenures @11.25% interest rate:
|Loan Amount ()||2 Years||3 Years||6 Years|
1 Lakh Loan amount
Total amount payable to the bank (Interest + principal)
From the above table, you can study that the longer tenure of the Personal Loan lowers the EMI amount. However, the outgo of the interest will be higher in case of long duration loans. For example: If the borrower takes 1 Lakh loan from Tata Capital for the duration of 6 years the EMI will be 1,916. However, the total interest that will be levied from Tata Capital in 6 years will be 32,969. In case, if you take an 1 Lakh loan from Tata Capital at the lowest rate for a period of 2 years, you will be paying the EMI of 4,672 and pay the total interest of only 12,138 that is less than half that you will pay for a 6-year loan. Therefore, it is recommended to carefully select the loan tenure as the longer loan tenure means paying high interest.
Tata Capital Personal Loan EMI Calculation Formula
The formula used to calculate Tata Capital Personal Loan EMI is as follows:
P = Loan amount to be borrowed. It can range from a minimum of 75,000 to maximum 25 Lakhs at Tata Capital.
r = Rate of interest per month. The current rate of interest for Tata Capital Personal Loan starts at 11.25%.
n = Tenure in months. For Tata Capital Personal Loan, this can be maximum 72 months.
How to Use Tata Capital Personal Loan EMI Calculator on MyMoneyMantra?
MyMoneyMantra's EMI calculator is very convenient, easy and simple. Following are the steps to use MyMoneyMantra's EMI Calculator to find the Personal Loan EMI:
- Log on to the MyMoneyMantra's EMI calculator page listed under the financial tools tab.
- Now enter all the important loan parameters like the loan amount, interest rate, and tenure.
- After entering the required details, you arrive instantly at the EMI amount.
- Now you can change the parameters and try different combinations to find the best suited EMI for you as per your budget.
- After the completion of the EMI calculation, you can also check your Personal Loan eligibility to find the best loan quotes on the basis of your requirements. You can also apply online for the Tata Capital Personal Loan through MyMoneyMantra.
Benefits of Using MyMoneyMantra's EMI Calculator
It is very beneficial to calculate the EMI before applying for the Personal Loan. This helps the borrower to know the exact amount they need to pay each month against the Personal Loan taken. This helps one to plan the monthly expenses accordingly and repay the loan amount over the loan tenure.
- 24x7 access
The EMI calculator is very easy to use and can be accessed anytime from anywhere. It does not need borrower to visit the bank or do all the complex calculations to arrive at EMI amount.
- Accurate output
Calculating the EMI payouts manually is a tedious and confusing task with an opportunity to make errors. When you do the same for different banks, the chances of errors increase and hence it is best to use the online EMI calculator which helps you in making error-free calculations within no time.
- Saves you from time-consuming and complex calculations
The online EMI Calculator of MyMoneyMantra saves times consuming complex calculations. You can also try various permutations and combinations to arrive at the desired EMI amount without much effort.
- Aids the financial planning process
The EMI calculator helps you with planning your finances and expenses before applying for the loan. You can also try changing the loan parameters to reach the most suitable EMI amount.
Quick Guide on Tata Capital Personal Loan
Purpose of Taking Loan: Tata Capital Personal Loan can be taken to meet the immediate need of finance for medical emergencies, wedding, education, payment of additional debts or any other personal expenses.
- Personal Loan is available for salaried individuals as well as self-employed.
- The minimum Personal Loan amount is 75,000 and maximum amount can go up to 25 Lakhs.
- Loan tenure varies between 1 to 6 years
- Lowest EMI of 1,916 per Lakh
- Interest rates range between 11.25% to 19%
- Borrowers must be under the age group of 22 and 58 years
Special Schemes: Customised Personal Loan interest rates and schemes are offered by Tata Capital to the special categories of borrowers such as employees of reputed companies, government firms, women applicants, and so on.
Factors Affecting Tata Capital Personal Loan EMI
- Loan amount: It is the amount borrowed from the Tata Capital. The higher the loan amount, the higher will be the EMI payable every month. The Tata Capital offers the Personal Loan of minimum 75,000 and maximum up to 25 Lakhs.
- Interest rate: The interest rate on the Personal Loan amount has a significant impact on the monthly EMI. The higher the interest rate, the higher will be the EMI amount. Lower interest rate can reduce the overall cost of loan and EMI as well. Tata Capital offers the lowest rate of interest of 11.25% on the Personal Loan. An applicant should do a complete comparison and market research before applying for the Personal Loan.
- Loan tenure: The loan tenure is the duration in which an applicant has to repay the borrowed Personal Loan amount. The longer the duration of the loan, the higher the EMI will be. The maximum loan tenure at Tata Capital on the Personal Loan is 6 years.
How to Analyse the Right EMI Amount?
Decide the amount you need to borrow: An applicant should decide and estimate the EMI they will be paying against the Personal Loan borrowed. It is important to note that Personal Loan is an unsecured loan and does not require submission of any collateral hence, the interest rate offered on the Personal Loan is high. Therefore, one should apply for the minimum amount required. On the basis of the EMI, the borrower can choose the right loan tenure as it will help them to save the outflow of interest.
Review your current expenses and obligations: An overall evaluation of the monthly expenses and fixed obligations is very beneficial before applying for the loan. This will help you assess the monthly expenses and plan future expenses accordingly. It helps you to arrive at the best EMI amount that you can comfortably pay. After finding out the EMI amount, one can decide the apt loan tenure.
Know your Tata Capital Personal Loan eligibility: The Personal Loan eligibility is determined by the repayment capacity of the borrower based on the monthly income and fixed obligations.
- Multiplier based loan amount eligibility: The loan amount eligibility is calculated by applying the multiplier to the net take home salary of the borrower. It is the easiest method of calculating Personal Loan eligibility. This method is widely used by the majority of the banks. The formula used in the loan amount eligibility calculation is
Loan Eligibility = (Your Net Salary) x (multiplier of 9 to 18).
The multiplier depends on the internal categorisation of the bank of the employer company of the borrower based on the size, growth rate, turnover, reputation, stability, and other factors.
- FOIR based loan amount eligibility: The fixed obligation to income ratio (FOIR) is also used by Tata Captial to find out the Personal Loan eligibility of the borrower. The monthly income and expenses are ascertained to find the maximum EMI the borrower can afford to pay. A certain ratio is applied by the bank on the income and expenses to calculate fixed obligations. This proportion of monthly income and expenses is called FOIR. The minimum FOIR of 0.65 is required by Tata Capital to lend a Personal Loan. This assessment of the EMI amount can differ from your own assessment and may require some changes in the loan amount. The applicant can also repay the current short-term loan to improve Personal Loan eligibility.
Tata Capital calculates the loan amount eligibility of the borrower on the basis of the above-mentioned two methods and will sanction the loan amount accordingly.
How Does Tata Capital Personal Loan EMI Change With Pre-Payment?
In case the applicant prepays the Personal Loan amount, the outstanding balance on the Personal Loan reduces. The following two options are given by Tata Capital:
- Reduce your loan tenure and keep EMI on your Personal Loan constant: In this option, you can close the entire loan amount earlier that the decided tenure and save the overall interest cost. This option is best suitable for the borrowers having adequate income to continue the same amount of EMIs.
- Reduce the amount of EMI and keep your loan tenure same: This option enables the borrower to reduce the monthly EMI and increases the monthly surplus. This option is best suitable for the borrowers whose monthly expenses are high and would like to further reduce the monthly EMI payable.
FAQs on Tata Capital EMI Calculator
Question - Why is it important to calculate Tata Capital Personal Loan EMI before availing the loan?
Answer - Here are some benefits of calculating your Tata Capital Personal Loan EMI before availing the loan:
- If the estimated EMI is more than your monthly budget, then the borrower can apply for a lower loan amount so that EMI is affordable and fits in the monthly budget.
- You can plan the monthly expenses if you already know the EMI you have to pay each month.
- Based on the EMI amount, a borrower can think of making a prepayment of the Personal Loan in the future.
Question - What is the lowest EMI per Lakh offered on the Personal Loan at Tata Capital?
Answer - Tata Capital offers the lowest EMI of 1,916 per Lakh at 11.25% rate of interest for the tenure of 6 years.
Question - Will the borrower get Tata Capital Personal Loan if they have a bad credit score?
Answer - No, for taking a Personal Loan from Tata Capital, an applicant must have a good credit score of 700 or above. Most of the banks avoid giving loans to the applicant having a low credit score.
Question - How does a borrower repay the Personal Loan amount?
Answer - The repayment of a Personal Loan can be done in the form of EMIs. The borrower is asked to present a few post-dated cheques and sign an ECS mandate too.
Question - Can a borrower have a co-applicant to apply for the Personal Loan with Tata Capital?
Answer - Yes, you can opt for a co-applicant to take a Personal Loan from Tata Capital. This will increase your Personal Loan eligibility as the income of the co-applicant is also considered while reviewing the loan application.
Tata Capital Personal Loan Latest News
2017-06-02: Tata Capital survey highlights that the majority of people take the loan to finance wedding expenses
A recent online survey from Tata Capital, the financial services arm of Tata Group has revealed that the majority of people consider taking the Personal Loan to partly or fully finance the wedding expenses. The wedding loan survey conducted by the company understands consumer behaviour and finance in India. This helps Tata Capital to introduce loan products accordingly.
2017-05-11: Tata Capital launches a unique product 'Salaam Loans'
Tata Capital has announced the launch of a unique and special product 'Salaam Loans' that approves the loans based on the votes received by eligible borrowers on social media platforms. The initiative is aimed at giving Personal Loans at reasonable rates to individuals who do not have access to the credit.
2017-07-12: Tata Capital announces the launch of robotic automation Bot for Personal Loans
Tata Capital, the financial arm of Tata Group has announced the launch of a robotic automation Bot for its Personal Loan products. The newly launched robotic automation Bot facilitates the customers to take Personal Loans by collecting the personal information of the applicants in the form of a chat. Tata Capital has reported a significant surge in its lead generation and improvement in customer experience due to robotic automation bot.