In the competitive world, entrepreneurs need business loan to run their companies smoothly. The reasons for taking business loan may vary from buying inventories, raw materials to expansion of an old business to maintaining cash flow. Whatever be the reason, Tata Capital provides customized business loans to its clients. The entire process of availing loan and repayment of the same is very smooth and flexible.
One can choose term loans of varying period (short, intermediate or long) to revamp their business or opt for Working Capital loan to fulfill their daily business requirements. Businessmen are also given the option of overdraft, when they are in dire need for money. The borrower has the flexibility to decide how the loan amount is to be repaid. They can select the tenure period and EMI they are comfortable with. One can pay the loan through post-dated cheques or auto-debit system or Electronic Clearance Service (ECS).
Factors affecting Business Loan eligibility and Interest Rate
Business loans can be provided as secured or unsecured loan. For secured loans, bank may ask for some mortgage like inventory, land etc. The rate of interest charged is less. For an unsecured loan, no collateral is required. However, the interest rates are on the higher side since the risks are high for banks. Before providing any business loan, the financial institution will take some of the following points into consideration:
- Business Type: Banks/financial institutions will always introspect on the type of business. They will not provide funds for speculative businesses. Generally, businesses that are in existence for a minimum of 3 years and have good turnover are eligible for business loans.
- Credit history: Any business that needs extra funding must maintain a good credit score. Companies having bad credit history in terms of late payment of dues, fraudulent charges etc. are less likely to get a loan.
- Business plan: Banks/financial institution will approve the loan only when they are thoroughly satisfied with the business model of the company. The applicant must be able to justify his need for funds and show ways to repay the same on time.
- Business experience: Companies that have been in existence for at least 3 years are given preference when applying for loan against the fresh comers.
Tata Capital Limited, a subsidiary of Tata Sons Limited started its operations in 2007. Headquartered in Mumbai, this Non-Banking Financial Company aims at providing clear financial solutions to all its clients. With more than 200+ branches across the country, the company provides an array of services which includes consumer loans, commercial finance, investment banking, treasure advisory and credit cards. Let us delve into the features and benefits of availing Tata Capital Business Loan.
Features of Tata Capital Business Loan
Following are the salient features of Tata Capital Business Loan:
- Tata Capital provides unsecured business loan.
- Business loan of 3 types are available –
- Working Capital loan to aid you in fulfilling day-to-day operations of the company
- Machinery loan to buy new machines or repair old equipment and increase overall quality
- MSME & SME loan for the small businesses to run effectively.
- Loan amount can vary from Rs.5 lakh to Rs.50 lakh
- Loan tenure ranges between 12 – 36 months.
- The interest rate of TATA Capital business loan starts from 19%. Depending on business type, income, loan eligibility etc., the company charges the best possible interest rate.
- Customer is free to choose EMI option while repaying the loan:
- Fixed EMI – Same EMI amount for the entire loan tenure. This is apt for applicants having a regular source of income.
- Structured EMI – Customised EMI amount as per the condition. This is suitable for applicants who expect their income to show growth at regular intervals. This is available in 2 forms:
- Step Up Flexi EMI plan, where one pays lower EMIs in the start and higher EMIs towards the end.
- Step Down Flexi EMI plan, where one pays higher EMIs in the beginning and lower ones towards the end.
Eligibility Criteria for availing TATA Capital Business Loan
Following are the key norms that must be fulfilled while applying for a business loan:
- The loan applicant must be in the age group of 25-65 years.
- Loan is available for businesses that are in operation for at least 3 consecutive financial years.
- The business must show a constant growth and cash profit over the past 2 years.
- Loan is available for business that is currently in operation and has their balance sheet reviewed by a registered Chartered Accountant.
Documents Required for TATA Capital Business Loan
The applicant must submit the below listed documents while applying for a business loan:
- Identity proof like Voter Card, Aadhaar Card, Passport, Driving License
- Address proof like Aadhaar Card, Passport, Driving License
- Last 6 months bank statements copy
- PAN card
- Business proof like Establishments or Sales Tax Certificate or Trade License
- Ownership documents
- Sole proprietorship declaration or Partnership deed certified copy
- IT Returns for last 2 financial years
- Balance sheet and Profit/Loss Statement for last 2 financial years
Fees and Charges of Tata Capital Business Loan
The interest rate and other fees and charges of Tata Capital Business Loan are as mentioned below:
|Services||Fees and Charges|
|Interest Rate||19% onwards|
|Cancellation Charges||2% of the business loan amount|
|Foreclosure charges||5% of the principal outstanding on the ongoing business loan|
|Post-dated cheque charges||Rs.850|
Advantages of Tata Capital Business Loan
Some of the key benefits of availing business loan from Tata Capital Limited are highlighted below:
- Quick and hassle-free application process
- No security or collateral is required
- Competitive interest rate
- Flexibility in repayment of the debt
- Tailor-made business loans scheme as per business requirements
How to Apply for TATA Capital Business Loan
Tata Capital Business loan offers multiple business loan products that cater to different sections of business aspects. If you are looking for options and want to apply for a business loan, you can visit at Paisabazaar.com where all the comparisons of banks business loans along with interest rate and features are available. All the business loan products offered by the banks and NBFCs can be compared here at Paisabazaar.com.
Frequently Asked Questions (FAQs)
- How can the business loan be repaid?
- The repayment can be done through Post Dated cheques, ECS (Electronic Clearance Service) or Standing Instruction
- What is the loan repayment period of business loan?
- One can repay the loan amount up to 36 months with TATA Capital business loan
- What is the interest rate of TATA Capital business loan?
- The interest rate is 19% onwards and is fixed.
Applying for Tata Capital Business Loan is very simple. One can visit a nearby branch and apply for the loan directly or visit their official website and apply online. In case, one has certain doubts, they can call the toll-free number 1800-209-6060 from 9 a.m. to 8 p.m. on Monday to Saturday or visit a nearby Tata Capital branch.