Tata Capital provides loans of up to Rs. 25 lakh at rates ranging from 10.99% p.a. to 19% p.a. The repayment period is variable, ranging from 1 to 6 years.

Tata Capital Personal Loan Interest Rates

Tata Capital Personal Loan Interest Rates and Loan Types

Comparison of Personal Loan Interest Rates offered by Various Banks/NBFCs

Features of Tata Capital Personal Loan Scheme

Here are the features:

• In addition to interest rates ranging from 11.25 to 17.99%, NBFCs may assess fees for loan cancellation, EMI failure, late payment, etc.
• The financial institution may offer special interest rates and repayment plans to consumers employed by banks, the government, or reputable businesses.
• In addition, it provides a top-up personal loan, which is an additional loan on top of the existing one. The present rate for this loan begins at 11.25 percent.
• To receive the highest rate offer, you must have a CIBIL score of 750 or higher. Rates will be reduced for CIBIL scores closer to 900.
• The NBFC offers a lower rate of interest and fees to customers with an excellent repayment history, strong repayment capacity, and solid financials.

TATA Capital Personal Loan Charges

You have a complete understanding of the cost of the loan; in addition to the interest rate, you must also consider the other fees. This will help you make an informed decision regarding a TATA Capital personal loan.

Processing Fee: The financial institution charges a nonrefundable processing fee. This fee is up to 2.50 percent of the total quantity borrowed. The tax is separately applicable. The administrative fee is either added to the first EMI or subtracted from the amount disbursed.

Foreclosure Charges: If you have additional funds, you may choose to prepay the loan before the end of the term. After paying the first six installments in full, you may foreclose or settle the balance in full. The costs associated with foreclosure range between Rs. 1,000 and Rs.

Part Payment Charges: You can reduce the principal amount and, consequently, the total interest payment by paying off a portion of the due amount prior to the end of the term. No fees are assessed for partial prepayment.

Other Charges: After the loan has been sanctioned, the NBFC will provide a statement of charges. This will include the interest rate and other fees, such as those for EMI cheque failure, loan cancellation, and late payment, among others.

Factors that Influence Personal Loan Interest Rate TATA Capital

Before applying an interest rate, the NBFC will evaluate your monthly income, financial obligations, loan amount, employment, and ability to repay. This section discusses such factors:

Loan Amount: The loan quantity is the amount that the lending institution authorises. You can borrow between 75,000 and 25,000,000 rupees. TATA Capital provides a reduced interest rate for larger loan amounts, and vice versa.

Tenure: The proposed lease term ranges between 12 and 72 months. A prolonged term may result in a lower interest rate, and otherwise. A shortened term will aid in reducing interest payments. Choose a shorter term if practicable, or one that corresponds to your ability to repay.

Monthly Income: Your salary or monthly income will help the financial institution assess your ability to repay the loan and afford the monthly installment payments (EMIs). If you belong to a higher salary bracket, TATA Capital may offer you a lower interest rate, or vice versa.

Grade of Employer: The NBFC may maintain a list of companies ranked from highest to lowest quality. This evaluation is based on the employer’s or business’s scale, reputation, and relationship with the NBFC. You may be offered a better interest rate if you work for companies with a higher ranking on this internal list.

Repayment Capacity: In order to determine whether you can afford the loan, the NBFC will evaluate your repayment capacity. It will examine your credit score and report for this purpose. Your CIBIL score and report will assist the lending institution in understanding your financial history in terms of EMI and credit card payments. If you have a regular and spotless repayment history, you have a good chance of obtaining the lowest interest rate.

Relationship with the NBFC: The NBFC may offer reduced fees and interest rates, as well as better offers, to customers with an excellent repayment history. This performance history must be at TATA Capital.

Additional Read: 25 Best Instant Personal Loan Apps in India

Personal Loan TATA Capital Illustration of Cost

A monthly equated payment is due on a specific date each month. You must pay this amount until the loan is paid off. EMI is a fixed payment towards the loan. The lowest EMI for Rs 1 lakh over 72 months is Rs 1,916. The equivalent monthly payment is dependent upon the loan term, loan amount, monthly income, and employer. This is a concise example of the monthly payment.

TATA Capital Personal Loan Interest Calculation

Here is an example of TATA Capital’s EMI on a personal loan at a rate of 11.25 percent for various terms on a loan of Rs. 1 lakh.

• As you can see, the monthly payment is lower for loans with an extended repayment period. The payment is greater for loans with a lesser term.
• The total interest payment is less when the loan term is shorter, and vice versa. For instance, if you borrow Rs. 1 lakh for 72 months, the lowest EMI will be Rs. 1,916, and the interest will total Rs. 37,952.
• For a 2-year loan with the same quantity, rate, and term, the EMI is Rs. 4,672 and the total interest paid is Rs. 12, 128. This amount is less than the quantity of a 72-month loan.
• Thus, you must select a term based on your capacity for repayment and maximise your 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 preceding example, it is evident that EMI varies with loan term and loan quantity.
• The payment amount is lower for lengthier terms and greater for shorter terms.
• Interest expense is lower for shorter terms and higher for extended terms.
• With each monthly payment, the interest portion decreases while the principal portion grows.

If you wish to learn about your loan’s periodic instalments, consult the amortisation schedule. This schedule contains information regarding the principal and interest components of each EMI. It also includes the EMI amount until the end of the term. The principal and interest components of each EMI may vary, but the monthly payment amount will remain constant.

Illustration

1. Mr. Peters earns a monthly salary of Rs.25,000 and has a credit score of only 600. He availed a personal loan of Rs.2 lakh from Tata Capital with a repayment tenure of 1 year. Due to his low credit score, he is charged with an interest rate of 19%. The monthly EMIs that he will have to pay are given in the table below:

For Salary of Rs.25,000 Per Month

2. Ms. Tavane earns a monthly salary of Rs.50,000 per month and has a credit score of 750. She avails a personal loan of Rs.2 lakh for a tenure of 1 year from Tata Capital. Due to her impressive credit score she is charged a relatively lower interest rate of 10.99%. The monthly EMIs that she will have to pay are given in the table given below:

For Salary of Rs.50,000 Per Month

FAQs on Tata Capital Personal Loan Interest Rates