Credit Scores
Tata Capital provides personal loans to salaried applicants based on their credit scores. However, the non-banking financial company (NBFC) has not specified their personal loan interest rates matrix for prospective borrowers on the basis of their credit scores.
Personal loan applicants can follow healthy credit behaviours like paying their EMIs on time, avoiding multiple loan applications within short durations, maintaining an optimal credit mix, etc. to increase/maintain their credit scores and thereby, improve their personal loan eligibility. They should also review their credit reports at regular intervals to find any mistakes in the report and highlight it to their lender or credit bureaus. Any error in a loan applicant’s credit report can reduce his credit score and negatively impact his eligibility for availing personal loans. Lower credit scores may also reduce loan applicants’ chance of availing Tata Capital Personal Loans at lower interest rates.
Income
Tata Capital has a minimum monthly income requirement of Rs 15,000 for their salaried personal loan applicants. Although Tata Capital has not specified the differential personal loan interest rates based on their loan applicants’ income, many lenders do provide lower interest rates for personal loan applicants having higher incomes. Borrowers with higher incomes usually have higher loan repayment capacity as well, which reduces the lender’s credit risk. Lenders can then pass on this benefit to the personal loan borrower in the form of lower interest rates.
Occupation Profile
Tata Capital sets their personal loan interest rates based on their loan applicants’ occupation profile and work experience. The NBFC has not specified offering differentiated interest rates on their personal loans based on their employer profile. However, many lenders consider the employer profile of their loan applicants while finalising the interest rates on their personal loans. Lenders usually offer lower interest rates on personal loans for salaried applicants when compared to personal loan for self-employed applicants. Within salaried applicants, lenders provide lower interest rates for employees working for the government or PSUs as their income and job security are usually higher compared to other salaried applicants. Lenders also offer lower interest rates on personal loans to employees working in MNCs or reputed private sector companies as their capacity of withstanding adverse economic conditions is usually better than other organisations in the private sector.
Existing Relationship with Tata Capital
Even though Tata Capital has not specified offering discounted personal loan interest rates to their existing customers, various lenders give interest rate concessions to personal loan applicants already having lending/deposit accounts with them. Hence, loan applicants looking to avail Tata Capital Personal Loans should first contact lenders with whom they already have existing lending/banking relationships and then, compare the interest rates offered by those lenders with Tata Capital’s Personal Loan interest rates .
