Tata Capital Loan Against Property

• The minimum amount of property loan from Tata Capital available to the customer is Rs. 5 lakh and the maximum amount of loan is Rs. 3 crore. So, the customer can opt for any amount of loan depending on the market value of the property against which the loan is granted subject to the minimum limit of Rs. 5 lakh and can avail a loan from Tata Capital for as high as Rs. 3 crore
• The Tata Capital property loan is offered against the mortgage of either the residential property or against any commercial property owned by the customer.
• The loan tenure ranges from a period of 12 months or 1 year to 120 months, i.e. 10 years.
• The property loan from Tata Capital is repaid in the form of Equated Monthly Instalments (EMIs) via post-dated cheques or Electronic Clearing Systems (ECS).
• Interest rates are competitive. The interest rates that the company charges is in tandem with the ones charged by other banks and financial institutions
• Loan can be taken for buying a non-residential premise or establishment or for taking over existing loan and top-up
• The loan can be foreclosed or prepaid without any charges if the loan is offered to individuals under a floating rate of interest.
• The loan processing system is fast and transparent making the funds readily available to the borrower so that he may fulfil his financial requirements without having to wait for long periods of time

Any applicant while applying for the Loan against Property needs to fulfil the following eligibility criteria:

Following salaried individual are eligible for a loan against property:

• Individuals employed in a Multi-National Company, Public Limited Company, large Private Limited Company, State Government, Central Government or PSUs can apply for the loan from Tata Capital
• The minimum age at the time of loan application should be 25 years and the maximum age at the time of maturity of the loan should not be more than 60 years
• The individual must be earning at least Rs. 2.4 lakh per annum
• The individual must be working for at least last 3 years

For Self-employed Professionals:

• Doctors, architects or Chartered Accountants can avail the loan under this category.
• The minimum age at the time of loan application should be 25 years and the maximum age at the time of maturity of the loan should not be more than 60 years
• The individual must be earning at least Rs. 2.5 lakh per annum
• The individual must be working for at least the last 3 years

For self-employed Non-Professionals:

• Traders, Retailers and Wholesalers can avail of the loan under this category
• The minimum age at the time of loan application should be 25 years and the maximum age at the time of maturity of the loan should not be more than 60 years
• The individuals must be earning at least Rs. 2.5 lakh per annum
• The individuals must be working for at least the last 3 years

Others:

• Firms, private limited companies and public companies can also avail a Loan against Property from Tata Capital if they have an income of at least Rs. 3 lakh every year and the business is at least 3 years old and is showing profit since the last two years.

Tata Capital offers attractive loan liability and interest rate ranging from 12% to 15% subject to property collateral and subject assessment. The rates of interest for salaried and self-employed professionals are as follows:

For applying for a Loan against Property scheme the applicants and the co-applicants, if any, have to submit the following documents which are easily available and minimal in nature.

For salaried individuals:

• Duly completed Application Form
• Photograph
• Identity Proof
• Residence Proof
• Signature Verification
• Form 16 and latest 2 months’ Salary Slips showing Income details
• Last 6 months’ bank statements

For self-employed Professionals and Non-Professionals:

• Duly completed Application Form
• Photograph
• Identity Proof
• Residence Proof
• Signature Verification
• Income Tax Returns, Profit & Loss Account and Balance Sheet of the last 2 years showing Income details
• Last 6 months’ bank statements

For others (non-individuals like firms, private limited companies and public companies)

• Duly completed Application Form
• Photograph
• Identity Proof
• Residence Proof
• Signature Verification
• Income Tax Returns, Profit & Loss Account and Balance Sheet of the last 2 years showing Income details
• Last 6 months’ bank statements

Tata Capital provides EMI Calculation facility through its online loan against property EMI Calculator. The following instances show the respective EMIs calculated using the calculator.

• A has a residential property against which he decides to avail of a loan. He approaches Tata Capital and applies for a Loan against Property under the Semi-Fixed scheme of 3 years. He undertakes to repay the loan in 3 years and at the applicable rate of interest of say 12.50%, the EMI payable by him is calculated to be Rs. 25,090 for a loan amount of Rs. 7.5 lakh.
• B mortgages his commercial property to avail a Loan against Property from Tata Capital. After the company’s valuation process, a loan of Rs. 25 lakh is granted to B which he promises to repay in 7 years. At the assumed rate of interest of 12.75% under the Floating Interest Scheme, the EMI payable by B every month comes to Rs.45,141
• C has a residential property which he mortgages with Tata Capital to avail a loan of Rs. 50 lakh. He undertakes to pay the loan in 10 years. At the assumed rate of interest of 13% per annum, the EMI payable by C would be Rs.74,655 every month for 10 years

The following table tabulates the above data for an easier reference:

An individual can apply for a Loan against Property from Tata Capital in various ways like online or by visiting the branch.

• Applying for loan against property from Tata Capital online

In keeping with the rising trend of online transactions, the company offers Loan application online through its website. Or you can also visit www.paisabazaar.com . The process is simple:

You need to enter a few details and select the suitable option. After the necessary analysis the company will contact the customer. So, the customer does not have to engage in useless hassles to avail a loan. He or she simply needs to log in to the website, choose the relevant tab, fill up the required details and the needful will be done.

The applicant needs to provide his personal details like name, location, mobile number and email id and authorize the company to revert back to him or her. The company’s representative then contacts the customer at the earliest and guides him through the application process and the documents required to be submitted.

• Applying via a branch

If the customer is not comfortable applying online, he or she may visit the nearest Tata Capital branch, fill up the application form and apply for the Loan against property. The nearest branch can be located through the company’s website.

Q. How does Tata Capital determine eligibility for loan against property and the loan amount?

Ans. There are certain factors which are considered to determine loan amount and eligibility:

• Income
• Age
• Valuation of property
• Existing obligation if any
• Stability / continuity of employment / business
• Past borrowing track record

Q. What is the maximum amount which can be offered as Tata Capital property loan?

Ans. Rs. 5 crore is the maximum amount that is offered as loan against property.

Q. What security is to be provided for availing a loan against property in Tata Capital?

Ans. The security for the loan will be the first mortgage of the property to be financed, generally by  way of deposits of titles deeds. The borrower has to ensure that property is marketable, clear and free from debt. There should not be any existing loan, debt, mortgage, lien or litigation which is likely to affect the title to the property negatively.

Q. What is the loan against property sanctioning and disbursement process?

Ans. Tata Capital follows a step by step process listed below:

• Loan application form
• Loan documents
• Documents required to avail loan from Tata Capital (property + financial documents)
• Personal discussion
• Investigation verification
• Sanctioning of loan
• Compliance of loan
• Property/loan assessment
• Disbursement of loan

Q. What are loan documents required for a balance transfer case?

Ans. The following documents are required for a balance transfer scenario:

• A loan sanction letter or welcome letter from the buy over institution
• Last 6 months record statement or applicants or bank statement from where the loan is being serviced

Q. What is the turnaround time for decisioning a loan against property application?

Ans. The processing of the loan against property normally takes 7 to 10 working days once all the documents are submitted. It also depends upon the documentation process and profile of customer.

Q. Does the property against which loan is to be taken have to be insured?

Ans. You will have to assure that the property is duly and accurately insured against fire and all other kind of calamities and hazards as required by Tata Capital during the tenor of the loan and to produce evidence thereof to the bank each year or whenever called upon to do so.

Q. If there is a change in interest rate and loan has already been taken in the past month, how will revised interest rate work for old customers?

Ans. Tata Capital does not change it interest rate very frequently. Interest rate is charged for those which are at least 3 months old. And if there is some fluctuation in interest rate then it will not have an immediate impact on interest rate of loan which is just one month old. However, once the loan from Tata Capital is 3 months old, any changes in rates will also apply to the margin of loan.