Buying a home is a once-in-a-lifetime decision for most; however, it is a huge investment. To buy the home to be called our own, most of us need financial support in terms of a Home Loan. We have plenty of Home Loan options available in the market that it becomes extremely difficult for us to choose the best fit.
If you are planning to purchase your dream home on a Home Loan, Tata Capital is one of the best financing options to choose from.
Tata Capital Home Loan can be used for the following purposes:
- To buy a piece of land/ property and construct a home on it
- To buy a ready built house/apartment
- For home improvement/ repairs/ extension
Before you decide to apply for this loan, you must know the answers to the five most frequently asked questions about Tata Capital Home Loan.
- Why should I choose the Tata Capital Home Loan?
Tata Capital Home Loan offers you the following advantages:
- You can avail a home loan amount ranging from Rs. 2 Lakhs to Rs. 10 Crores for residential properties.
- Repaying your home loan is easier with Tata Capital because of their flexible tenure, which starts from 1 year to as long as 30 years.
- The loan is customised according to your needs.
- The online application is quick and requires minimal paperwork. Tata Capital Home Loans is known for its fastest processing of the loan.
- The home loan comes at attractive interest rates, starting from as low as 9%.
- Am I eligible for the Tata Capital Home Loan?
To be eligible for the Tata Capital Home Loan the following criteria need to be fulfilled:
- You must be a:
- Salaried individual working for a reputable company or Self-employed professional or Self-employed non-professional or businessperson
- You should be above 24 years of age at the time of applying for the loan and under 65 years or superannuation (whichever is earlier) at the time of loan maturity (for salaried individuals).
- You must earn an income which should be sufficient to service the home loan you want to avail.
- You should have a CIBIL score of 750 and above.
- How do I calculate my EMI and what affects it most?
Use My Money Mantra’s EMI Calculator to calculate your home loan EMI. You just need to enter following details to get the result:
- Loan Amount: The loan amount may range from 2 Lakhs to Rs. 10 Crores (but cannot be more than 80% of the market value of the property).
- Loan Tenure: The maximum tenure is 30 years.
- Interest Rate: The current Tata Capital Home Loan interest rates vary from 9.05% to 9.45% (and 9% for women borrowers).
For example, if you avail a loan of Rs. 25 Lakhs for a period of 20 years and at an interest rate of 9% the equated monthly instalment (EMI) will be Rs. 22,493.
If you want to reduce your EMI, you may opt for a longer tenure, whereas for paying off your loan early, you may opt for higher EMIs.
Clearly, the thumb rules to be followed are:
- Lower the interest rate, lower the EMI
- Higher the loan tenure, lower the EMI
- Higher the loan amounts greater the EMI
EMI payments can be made by the following modes.
- PDC (Post Dated Cheques) – Where you issue cheques for the EMI amount payable on a fixed date like the 5th or 10th of each month.
- ECS – Where you authorise your bank to debit the EMI and pay Tata Capital on a fixed date of each month.
- Online Transfer – Through net banking.
- What charges are involved in availing the Tata Capital Home Loan?
Availing Home Loan from Tata Capital involves the payment of one-time non-refundable processing fee of up to 0.5% of the sanctioned loan amount.
- Are there any charges if I decide to close or prepay my home loan?
Yes, the charges for partial prepayment and foreclosure of the loan are explained below.
- Part Prepayment charges: Tata Capital facilitates the part prepayment of a Home Loan where payments up to 25% of the loan amount are absolutely free. Beyond 25% of the outstanding loan amount, the borrower has to pay 2% of the outstanding loan amount as part prepayment charges.
- Foreclosure charges: A borrower with a floating interest rate can foreclose the home loan at zero foreclosure charges. The borrowers on a fixed rate of interest will pay 2% of the outstanding loan amount as foreclosure charges.
- Non-individual borrowers like companies will also have to pay 2% of the outstanding loan amount as foreclosure charge.