Tata Capital Business Loan Highlights 2023 | |
| Interest Rate |
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| Loan Amount |
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| Loan Tenure |
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| Processing Fees | Up to 2.75% of the loan amount plus GST |
Note: Rates as of 27th March 2023
Table of Contents
Tata Capital Business Loan Interest Rates
Tata Capital Business Loan interest rates start from 12% p.a. The interest rates provided by the lender for its business loans are as follows:
| Particulars | Interest Rates (p.a.) |
| Tata Capital Business Loan for Self-Employed Doctors | 12% to 15% p.a. |
| Tata Capital Business Loan for Self-Employed Professionals other than Doctors | 13.00% to 17.50% p.a. |
| Tata Capital Business Loan for Self-Employed Non-Professionals | 15% to 25% p.a. |
| Tata Capital Business Loan for Women | 15% – 25% p.a. (for self-employed non-professionals), 12% – 15% p.a. (for self-employed doctors) and 13% to 17.50% p.a. (for self-employed professionals other than doctors) |
| Tata Capital Business Loan for Machinery | 15% p.a. onwards |
| Tata Capital Business Loan for MSME/SME | 15% p.a. onwards |
Fees and Charges for Business Loans from Tata Capital
The fees and charges for availing Tata Capital Business Loans are mentioned below:
Fees and Charges for Tata Capital Business Loans
| Particulars | Fees and Charges |
| Processing fees | Up to 2.75% of the loan amount plus GST |
| Foreclosure charges |
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| Foreclosure Charges for Top-up |
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| Foreclosure Charges in CCOD Cases |
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| Penal or additional interest rate | 3% on the overdue amount per month plus GST |
Types of Business Loans provided by Tata Capital
Tata Capital Business Loan for Women
Purpose: Tata Capital Business Loan for Women is specially designed to enable women entrepreneurs to scale their business and meet their working capital needs. The NBFC offers business loans for women without collateral along with providing the option to structure their EMIs based on loan amount for easy repayment. Tata Capital also offers customised business loans to women applicants to increase their loan eligibility.
Interest Rates:
- For self-employed non-professionals: 15% – 25% p.a.
- For self-employed doctors: 12% – 15% p.a.
- For self-employed professionals other than doctors: 13% to 17.50% p.a.
Loan amount: Rs 5 lakh to Rs 75 lakh
Loan tenure: 1 to 3 years
Tata Capital Business Loan for Machinery
Purpose: Tata Capital Business Loan for Machinery allows businesses to finance the purchase of new machineries or equipments. The NBFC provides business loans for machinery purchase without asking for collateral along with structuring their EMIs based on the loan amount for easy repayment. Tata Capital provides customised business loans for machinery to improve the loan eligibility of their loan applicants.
Interest Rates: 15% p.a. onwards
Loan amount: Rs 5 lakh to Rs 75 lakh
Loan tenure: 1 to 3 years
Tata Capital Business Loan for MSME/SME
Purpose: Tata Capital Business Loan for MSMEs (Micro, small and medium enterprises) /SME (small and medium enterprises) allows MSME to finance their various business requirements like purchasing new machinery or equipment to expand their operations, maintaining healthy cash flows, maintaining skilled workforce, etc. Loan applicants do not need to pledge collateral for availing Tata Capital Business Loan for MSME/SME. Borrowers can structure their EMIs based on loan amount for easy repayment. Tata Capital offers customised business loans for MSME/SME applicants to increase their eligibility for availing the loan.
Interest Rates: 15% p.a. onwards
Loan amount: Rs 5 lakh to Rs 75 lakh
Loan tenure: 1 to 3 years
Tata Capital Term Loans
Purpose: Tata Capital Term Loan is a secured business loan facility to enable businesses to fund their expansion plans by upgrading their technological infrastructure, investing in research and development, setting up a new plant, etc. The NBFC claims to offer a swift online application process with minimal documentation along with loan sanction and disbursal digitally. Tata Capital also offers pre-approved term loans wherein the suppliers to OEMs (original equipment manufacturers) approved by the NBFC can avail working capital loans of up to 45 days supply to the manufacturer.
Loan Amount: Up to Rs 2 crores
Tata Capital Business Loan Structured Products
Purpose: Tata Capital Business Loan Structured Products offer a wide range of customised financing solutions to businesses to take care of their financial or business requirements. Some of the options offered by the NBFC under this facility are mentioned below:
- Debt Syndication: Tata Capital debt syndication loan allows businesses to raise funds (in rupee and foreign currency) to fund their business expansions and acquisitions, refinance their existing business or restructure their debt. The NBFC also offers products like external commercial borrowings, debt refinancing, short and medium term corporate loans, etc. for businesses under the debt syndication facility. The NBFC has entered into partnerships with various banks, mutual funds, insurance companies, pension funds and other financial institutions to offer debt syndication services.
- Structured investments: The Tata Capital structured investments facility enables businesses wherein it structures its investments in the form of mezzanine capital through convertible bonds or non-convertible debentures. The NBFC offers customised products like holding company financing, option monetization structures, receivables discounting, acquisition financing, Pre-IPO financing, convertible debt financing / quasi equity instruments, etc. to businesses as a means to raise finance for running their operations.
- Loan Against Securities: This business loan facility enables businesses to raise capital by pledging their equity shares, bonds, mutual funds or securities. Small and emerging corporates, unlisted companies, promoters and large businesses/investors can avail funds through this facility for the purpose of business expansion, working capital finance, purchase of machinery etc.
- Letter of Credit: The letter of credit facility enables businesses operating in international trade to minimise their credit risk. The NBFC offers a guarantee of payment to businesses availing this facility with funding of up to 100% of the LC value. Tata Capital offers two types of LCs, Sight and Usance (both inland and foreign). The NBFC does not ask for additional collateral and provides LIBOR financing of up to 3 years.
- Lease Rental Discounting: The lease rental discounting facility allows businesses encash their rentals receivables from their tenants for the purpose of financing purchase of property, acquisition, repairs (renovation/alteration/ addition) to the building, expansion, projects, refinance of existing debt etc.
- Loan Against Property (LAP): Tata Capital offers LAP to businesses wherein they can pledge their residential/commercial property to avail funds for business expansion, infusing capital in business, improving asset-liability mismatch, etc. with LTV ratio of up to 70% of the property value. The loan tenure for this facility varies between 1 year to 9 years.
The Tata Capital Business Loan Structured Products also include other products like loan against shares, project finance,construction finance, inventory funding – real estate, promoter funding etc.
Tata Capital Business Loan for Equipment Financing and Leasing
Purpose: The Tata Capital Business Loan for Equipment Financing and Leasing allows businesses to avail a pre-established credit line for acquiring new assets and technology. The lender claims to offer simple documentation and a quick approval process for this loan facility. The financial solutions provided by the bank include operating lease, finance lease, sale & lease-back, equipment loan, supplier’s credit, etc.
- Equipment Finance: Equipment finance enables business owners avail additional funds for the purpose of business expansion, working capital needs and purchasing additional equipment. The NBFC offers the following solutions under equipment finance:
- Term Loans: The term loan facility allows business units procure funds for on-going expansion needs, repaying high-cost debt, upgrading technology and machinery, investing in R&D, leveraging specific cash streams that accrue into your company and supplement working capital. The bank offers LTV ratio of 70- 80% of the equipment value
- Buyer’s Credit: The buyer’s credit facility is a short-term loan offering enabling importers to receive credit through overseas lending institutions based on issuance of LC. The interest rates offered under this facility are linked to LIBOR (London Interbank Offer Rate). This facility enables businesses access the needed funds without exhausting their working capital and the existing lines of credit. The importer also does not need to offer any secondary collateral needed (subject to the company profile as approved by the lender)
- Digital Equipment Loans: Tata Capital provides a digital platform for availing pre-approved machinery loans between Rs 10 lakh and Rs 1 crore. These unsecured loans come with tenures of 2 to 5 years
- Equipment Leasing: Tata Capital offers equipment leasing solutions to businesses wherein they can lease their IT Equipment, plant & machinery, furniture & fixtures, etc. and use the funds to invest in technology and capacity building to improve their productivity.
Tata Capital Construction Finance
Purpose: The Tata Capital Construction Finance facility is offered to real estate developers having projects in select cities. The lender determines the loan amount, tenure , repayment schedule, asset cover and interest rates based on the evaluation of the real estate project and the developer along with assessing the market conditions.
Tata Capital Commercial Vehicle Finance
Purpose: The Tata Capital Commercial Vehicle Finance facility enables businesses to avail funds for buying new and used commercial vehicles including Light, Medium, Heavy Commercial Vehicles (MHCV) and buses, cement bulkers, oil tankers, over dimensional and special cargo trailers. The NBFC offers customised solutions including term loans , WCDL/TL , refinance, structured finance, top ups under this loan facility for up to 100% finance without arranging for additional security. The lender claims to offer minimal documentation under this business loan facility.
Loan Tenure: 3 to 5 years
Tata Capital Construction Equipment Finance
Purpose: The Tata Capital Construction Finance facility is offered to businesses in the form of new asset finance, working capital demand/term loans, letter of credits for imported machines, refinance, structured finance, operating and finance Leases, etc. This facility enables businesses to use construction equipment for the purpose of financing a wide range of equipment like excavators, backhoe loaders, concrete equipment, cranes, mixing plants, forklifts crushers, reach stackers, etc. for up to 100% finance without arranging for additional security. The lender claims to offer minimal documentation under this business loan facility.
Loan Tenure: 1 to 5 years
Tata Capital Business Loan for Working Capital
Purpose: Tata Capital Business Loan for Working Capital allows businesses to take care of both urgent financial requirements and routine need for funds. The different types of business loans for working capital offered by Tata Capital are as follows:
- Channel Finance: Channel Finance allows distributors, dealers or buyers avail working capital for purchasing goods or services from their corporate suppliers. It enables businesses to free up their cash flow which can be utilised for growing their venture while strengthening their distribution network. The NBFC claims to offer a simplified digital process for onboarding customers availing channel finance of up to Rs 2 crore.
- Invoice Discounting: Invoice Discounting enables businesses to get early payments against their outstanding invoices. It improves the cash flows of a business and monetises the receivables stuck in unpaid invoices with the corporates (those approved by Tata Capital). The NBFC claims to provide a simple documentation process for its invoice discounting facility.
- Purchase order funding: The purchase order facility provides upfront funding against a confirmed purchase order to allow businesses procure raw materials, staff or supplies and encourages them to expand their operations. This facility also allows businesses to raise additional working capital and subsequently improve their cash flows or liquidity to fulfil their purchase orders from corporates (those approved by Tata Capital). The NBFC claims to provide a simple documentation process for its invoice discounting facility.
- Working Capital Demand Loan: The working capital demand loan facility allows businesses to avail easy finance to pay for additional expenses, rent, mortgage payments, marketing expenses, purchase of inventory or other short term financial obligations. Tata Capital offers both fund based and non-fund based business solutions for businesses under this business loan facility.
Eligibility Criteria for Availing Tata Capital Business Loan
The business loan eligibility criteria set for availing Tata Capital Business Loans are mentioned below:
- Sole proprietorship, partnership firm, private limited companies, closely held public limited companies, societies, trusts, hospitals, nursing homes, diagnostic centres and pathological labs.
- Age: Between 25 to 65 years
- Business should be profitable for 3 consecutive financial years
- Business turnover must show an upward trend
- CIBIL/credit score should be 700 or above
- Balance Sheet and Profit & Loss Account audited by a registered CA
Documents required for Tata Capital Business Loan
The documents required for availing different types of Tata Capital business loan schemes are mentioned below:
Tata Capital Business Loan
- Photo ID proof (Aadhar card, Driving licence, Voter ID or Passport)
- Last 6 months bank statements of the company
- Last 2 years Income Tax Returns
- Financial statements (Balance Sheet and Profit & Loss account) of last 2 years
- KYC documents of the business and business owners
- A report with detailed plan of how the loan applicant will utilise the business Loan
- Bank statements
- Business proof: Trade License, Sales Tax Certificate, Sole Proprietorship Declaration, Partnership Deed, Income Tax Returns along with computation for last 2 years or financial statements (Profit and Loss Statement and Balance Sheet) for the last two years
- Duly filled application form with 2 passport sized photographs
Tata Capital Lease Rental Discounting Facility
- Registered/Unregistered Lease Agreement between Lessor and Lessee,
- Property documents/sale deed/agreement to sale of the property to be leased/offered as security,
- Valuation of the property to be offered as security/lease property
- Title search report to establish the rightful ownership of the property under the Lease Rental DIscounting facility.
Tata Capital Business Loan for Equipment Financing and Leasing
- Purchase invoice for machinery/equipment
- KYC and CIBIL record of the company and its directors
- Bank statements for the last 12 months of business
- Books of Accounts/audited financials for the previous 3 years of business
- Sales data for the last 12 months
- Existing Loan Declaration
- Residence/office proof