Tata Capital Personal Loan Interest Rates 8th March 2021
||11.25% to 17.99%
||Rs. 75,000 to Rs. 25 lakhs
||12 months to 72 months
||up to 2.50% of the loan amount
|Part Prepayment Charges
You can do part prepayment after payment of first 6 EMIs
You can do foreclose after payment of first 6 EMIs
Rs. 1,000 to Rs. 5,000
TATA Capital Personal Loan Interest Rate starts at 11.25%. The lowest EMI for Rs. 1 lakh is Rs. 1,916 for longest tenure of 72 months. The minimum tenure is 12 months. You can apply for this loan if you are a salaried or a self-employed professional. You need to be in the age group of 21 years to 58 years for the same. Processing fee is up to 2.50% of the principal loan amount. The financial institution has no charges for part prepayment, but applies up to Rs. 5,000 for foreclosure.
In this post we will discuss about TATA Capital Personal Loan Interest Rate features, other charges, factors influencing the rate of interest, total cost of loan, interest calculation, EMI calculation, and frequently asked questions.
Features of TATA Capital Personal Loan Rate
Here are the features:
Apart from rate of interest 11.25% to 17.99%, the NBFC may apply situational charges for loan cancellation, EMI bounce, late payment, etc.
The financial institution may offer special rates and schemes for borrowers working for banks, government, or reputed companies.
It also offers top-up personal loan, which is an additional borrowing on the existing loan. The current rate for this loan starts at 11.25%.
To get the best rate offer, you need CIBIL score at least 750+. The rate will be lower for CIBIL score nearer to 900.
The NBFC offers a lower rate of interest and charges for customers who have had a great repayment track record with it in the past, good repayment capacity, and financials.
TATA Capital Personal Loan Charges
You get a perfect idea about the loan cost; you must go through other charges along with interest rate. This will help you take an informed decision on taking a personal loan from TATA Capital.
Processing Fee: The financial institution applies a non-refundable processing fee. This fee is up to 2.50% of the amount you borrow. The tax is applicable separately. The processing fee amount is either added to first EMI or deducted from the disbursal amount.
Foreclosure Charges: If you have additional funds, then you may choose to preclose the loan before end of tenure. You can foreclose or pay off the outstanding due completely after payment of first 6 EMIs. The foreclosure charges are between Rs. 1,000 and Rs. 5,000.
Part Payment Charges: You can reduce the principal amount and thereby the total interest payout on paying off a certain part of due amount before end of tenure. There are no charges for part prepayment.
Other Charges: After sanctioning the loan, the NBFC will provide a statement of charges. This will mention the rate of interest and other circumstantial charges such as that for EMI cheque bounce, loan cancellation, late payment, and more.
Factors that Influence Personal Loan Interest Rate TATA Capital
The NBFC will analyse your monthly income, financial liabilities, loan amount, employment, repayment ability, and other details before applying a rate of interest. Here is a discussion on such factors:
Loan Amount: The amount that the financial institution sanctions to lend is the loan amount. You can borrow between Rs. 75,000 and Rs. 25 lakhs. TATA Capital offers a lower rate of interest for a higher borrowing amount, and vice-versa.
Tenure: The tenure offered is between 12 months and 72 months. A longer tenure may apply a lower rate, and otherwise. A shorter tenure will help reduce the interest outgo. Thus, choose a shorter tenure if possible, or pick one as per your repayment capacity.
Monthly Income: Your salary or monthly income will allow the financial institution to understand about your ability to repay the loan or afford the EMIs. If you belong to a higher salary bracket, it may convince TATA Capital to offer a lower rate, or vice-versa.
Grade of Employer: The NBFC may have a list of companies that they grade from high to low. This rating is as per the employer/company size, reputation, and relationship with the NBFC. If you work for companies that carry a higher rating in this internal list, then you may be offered a better interest rate.
Repayment Capacity: To know your ability to afford the loan, the NBFC will check for your repayment capacity. For this purpose, it will check your credit score and report. Your CIBIL score and report will help the lending institution to know about your financial journey in regards to payment of EMIs and credit card bills. If you have had a regular and clean repayment record, chances are high of securing the lowest interest rate.
Relationship with the NBFC: The NBFC may offer lower charges and rates along with better offers to customers with good repayment record in the past. This track record must be with TATA Capital.
Personal Loan TATA Capital Illustration of Cost
|Annual Percentage Rate
||11.25% to 17.99%
|Total cost of the loan with applicable fee
||Here is the instance:
Total Borrowing Amount: Rs. 1 lakh
Tenure: 12 months to 72 months
Interest Rate: 11.25% to 17.99%
Processing Fee: Up to Rs. 2,000. Current fee is up to 2.50% of principal amount
Fee for Loanbaba: No fee
Total Cost for the Month: For Rs. 1 lakh at 11.25% for 72 months, the EMI is Rs. 1,916. For Rs. 1 lakh at 17.99% for 12 months, the EMI is Rs. 9,168
Equated monthly instalment is to be paid at a particular date every month. You need to pay this amount till you close the loan. EMI is a fixed amount towards the loan payment. The lowest EMI for Rs. 1 lakh is Rs 1,916 for 72 months. The equated monthly instalment depends upon the loan tenure, amount, monthly income, and the company you are employed with. Here is a brief illustration of the monthly instalment.
||1 Year Loan
||6 Years Loan
||3 Years Loan
|Rs. 1 Lakh
|Rs. 5 Lakhs
|Rs. 10 Lakhs
TATA Capital Personal Loan Interest Calculation
Here is an illustration of TATA Capital EMI on personal loan at 11.25% rate for different tenure on borrowing of Rs. 1 lakh.
|EMI for Rs. 1 lakh at 11.25%
|Principal + Interest = Total Repayment
||Rs. 1.12 Lakh
||Rs. 1.38 Lakh
||Rs. 1.18 Lakh
|Total Interest Amount
In this case as you notice, the monthly instalment is lower for borrowing on a longer tenure. The instalment is higher for a borrowing on shorter tenure.
The total interest payment is lower for a shorter tenure, and vice-versa. For instance, if you borrow Rs. 1 lakh for 72 months, then the lowest EMI is Rs. 1,916, and the interest amount is Rs. 37,952.
On the other hand, for a borrowing of same amount, rate, but for 2 years, the EMI is Rs. 4,672 and the total interest payout is Rs. 12, 128. This amount is lower than that of a loan taken for 72 months.
You must thus choose tenure as per your repayment capacity, and make maximum savings.
TATA Capital Personal Loan EMI Calculation
Here is the formula to calculate monthly instalment amount:
P*r* (1+r) ^n/([(1+r) ^n]-1)
In the above formula,
P = The principal and loan amount. You can borrow between Rs. 50,000 to Rs. 25 lacs
r = The monthly interest rate. Lowest rate is 10.99%
n = It represents tenure in months. The tenure is from 12 months to 60 months
Here is the personal EMI at 11.25% rate at different tenures and loan amounts:
In the above given illustration, it is evident that EMI differs with tenure and loan amount.
The instalment amount is lower on a longer tenure, and higher on a shorter tenure.
The interest outgo is lower on a shorter tenure, and higher on a longer tenure.
With every monthly instalment you pay, the interest portion reduces while the principal component increases.
If you want to know about periodic loan payments, then check for the amortization schedule. This schedule has details about the interest and principal component in each EMI. It also tells about the EMI amount till end of tenure. The interest and principal component may change in each EMI, but the monthly instalment amount will remain the same.
Frequently Asked Questions About TATA Capital Personal Loan Interest Rate
Here are the FAQs on TATA Capital interest rate for personal loan:
The loan amount, interest rate, and tenure are the three major things that influence the EMI amount for a loan. The higher the loan amount, greater is the EMI, and vice-versa. The same holds for interest rate. But for tenure, a shorter one means higher EMI but lower interest payout and vice-versa.
To borrow the loan, you need to be a resident Indian with a regular and stable monthly income. You can borrow between Rs. 75,000 and Rs. 25 lakhs. The tenure is between 12 months and 72 months. The rate of interest is up to 17.99%. A good credit score of 750+ and repayment capacity are necessary to get approval for the loan.
The rate of interest tells you about the interest payout over the principal borrowing amount. Lower the rate, lower will be the total cost of the loan. The lowest rate by the NBFC is 11.25% and the highest is 17.99%. You must meet the eligibility criteria by the financial institution and have a great repayment record to get the best rate offer.
To make the most of the NBFC facilities, opt for foreclosure or part prepayment and save on the interest payout. By making a part prepayment, you reduce the instalment amount, and thereby decrease the interest outgo. At the same time, you can choose to close the loan early by completely repaying the due amount. So, you have to pay the interest only till the tenure you decide to hold the loan for, and not the entire tenure as per the loan agreement.
To keep the interest payout the minimum, select the shortest possible tenure and as less as loan amount you may want to borrow. Both will help secure the lowest EMI. However, the cost of loan also depends on the interest rate applicable. So, try and retain a healthy CIBIL score and financials for TATA Capital to apply the lowest possible rate of interest. A prior good relationship with this particular NBFC may also help fetch the best offer, discount on charges,and rates.
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