Personal Loan

• The loan can be put to multiple usage as it serves as a multipurpose solution for all your personal requirements which may include planning for your child’s marriage or taking a much-needed trio which would involve huge finances which is difficult for you to meet.
• These loans can also be availed for the purpose of funding an applicant’s business needs.
• This loan can be availed by all individuals, whether salaried, self-employed or self-employed professionals.
• Loans are issued at an interest rate ranging from 12%.
• These Loans provide a tenure period ranging from 12 months to a maximum of 60 months i.e. 5 years.
• Being an unsecured loan, applicants are not required to pledge any security or deposit any collateral against the amount of loan availed.
• The institution charges a low interest rate on the loan and thus the EMIs become easier for the individual to afford.
• The organization provides for repayment of the loan through Electronic Clearing Service (ECS) i.e. the EMI amount is debited directly from the applicant’s nominated bank account or through postdated cheques drawn in the favor of ‘Tata Capital Financial Services Ltd’.
• The Financial organization allows a loan amount ranging from a minimum of Rs.75000 to a maximum of Rs.25 lakhs. However, amount of loan to be disbursed is left at the sole discretion of the organization and is decided keeping in mind the applicant’s income, eligibility and repayment capacity.
• The bank asks for simple documents to process the loan. Every required document is easily available with the individual and can be easily submitted thus making the documentation process simple
• Not only is the documentation process quick, the loan processing is also very quick as the company offers loan sanction within 72 hours. Obviously, to achieve this quick disbursal, the application and the documentation should be correct and complete.
• The company provides the customers facility to avail of extra funds through top-up loans if the customer is already having a Personal Loans from the institution. To apply for the top-up loan there are some conditions. These top up loans can availed only after completion of a minimum of 8-18 months of the repayment period i.e. a minimum of 8-18 EMI’S have to be paid by the applicant before availing this facility.
• The organization also provides for an online approval of the loan. The amount of loan sanctioned online can reach up to Rs.15 lakhs.
• The organization allows for flexi EMI’S with higher eligibility loan options.

 Keeping in mind, the changes in the income patter of an individual and his/her capacity to payback, the organization allows for flexi EMI schemes, which allows an individual to increase, decrease, part prepay the loan, depending upon his income in a given year. The organization provides for three flexi EMI methods, namely, Step up Flexi EMI plan, Step down Flexi EMI plan, and Bullet Flexi EMI plan.

Step up Flexi EMI plan: This plan is very beneficial for applicants anticipating an increase in their annual income. With, the help of this plan they can increase the amount of their EMI every year in correspondence with the increased income. This plan gives an applicant the freedom to increase the EMI amount, lower the taxes on the increased income and pay off the loan much before the stipulated time.

Step down Flexi EMI plan: This plan is very beneficial for applicants who are nearing their retirement age and desire to build an asset before retirement. This plan allows the individual to pay off the loan through Higher EMI’s initially, and then gradually lower down the EMI amount year after year. This scheme is helpful for individuals who have sufficient disposable income.

Bullet Flexi EMI plan: This plan is beneficial for applicants who receive regular incentives and bonuses in their work i.e. an extra income inflow apart from the regular income. This plan helps an individual to prepay certain part of their loan at no extra cost, thus helping him to decrease his EMI by a considerable amount.

The organization provides for repayment of the loan through Electronic Clearing Service (ECS) i.e. the EMI amount is debited directly from the applicant’s nominated bank account or through postdated cheques drawn in the favor of ‘Tata Capital Financial Services Ltd’.

Prepayment of the loan:the customer, if he wants, can pay off the loan liability well before the stipulated tenure. This is called prepayment and the facility of prepayment is granted by the institution. To avail of this facility, the customer has to stick to some terms. This facility can be availed only after completion of six months of availing the loan .i.e. a minimum of 180 days gap has to be kept between the loan issuance date and the repayment date.

The organization also allows an individual to pay off certain amount of his loan in parts. However, certain things are to be kept in mind before opting for this option.

This facility can be availed only after completion of six months of availing the loan .i.e. a minimum of 180 days gap has to be kept between the loan issuance date and the part prepayment date. If paid within six months, the organization does not levy any kind of charge.

An applicant can only choose to prepay 25% of the outstanding amount towards prepayment of the loan. The organization does not levy any charge on prepayments made up to 25% of the outstanding amount. However, for part prepayments made beyond 25% of the outstanding amount, the organization levies a charge of 2%+ applicable taxes, on the extra amount being paid by the applicant.

Eligibility: Before applying for a Personal Loan from the organization, you need to check whether you are eligible to apply for a loan. Not all and sundry can avail a loan at their whim. There are necessary criteria to be fulfilled before the organization grants you a loan and every applicant is required to match the stipulated criteria. The criterion to be matched varies depending upon the applicant’s business profile.  Below is a list of eligibility criteria required for the applicant to match so that he or she will be eligible to seek a loan from the organization.

In case of Salaried Employees:

• Age: A salaried individual with a minimum age of 21 years and a maximum age of 58 years can apply for a loan with the organization.
• Income: The minimum income of the salaried individual in order to avail a loan from the organization has to be Rs.20000 per month.

In Case of Self Employed/ Professionals:        

• Age: A self-employed individual/professional with a minimum age of 25 years and a maximum age of 65 years can apply for a loan with the organization.
• Income: The minimum income of the salaried individual in order to avail a loan from the organization has to be Rs.2 lakhs per year.
• Business continuity: A self-employed professional should be a resident of the city where the business is being run for a minimum period of 3 years. The business also has to be at least 3 years old, whereas a self-employed individual should have a work experience of minimum 3 years along with current business life of minimum 3 years.

The amount of loan to be sanctioned and the tenure of the loan depend upon the applicant’s income, age, repayment capacity and his business profile.
 

• A salaried individual is eligible for a minimum loan of Rs.75000 and a maximum loan of RS.25 lakhs along with repayment tenure ranging from 12 to 72 months.
• A self-employed professional/individual can apply for a minimum loan of Rs.75000 and a maximum loan of Rs.15 lakhs with repayment tenure ranging from 12 to 48 months.

The following documents need to be submitted for availing the loan.

In case of salaried individuals:

• Any individual seeking a loan will have to provide a Copy of Passport or Driving License or his Voter ID card as a proof of his identity which is required by the institution to offer the loan to the said individual.
• A copy of address proof is also required as an important document for availing the loan. The applicant can submit either of his acceptable documents like passport, rental agreement, driver’s license, electricity bill, etc. for this purpose.
• The applicant’s bank statement of the last three months will be required for establishing his financial stature
• The salary slip or salary certificate of the latest date with the Form 16 would also be demanded if the individual falls in the category of a salaried individual.

In case of Self Employed Professionals/Individuals:

1. Identity Proof: Copy of Passport / Voter ID card / Driving License. Any one of the document can be submitted as a valid Identity Proof because all the listed documents have the individual’s photograph along with his or her name against the photograph proving the identity of the applicant.
2. Address Proof – Copy of Ration Card / Electricity or Telephone Bill / Passport/ Driving License/ Election Card/Trade License/Sales Tax certificate. The applicant needs to submit any one of the afore-mentioned documents which state the correct address of the applicant needed for the verification process of the organization.
3. IT Returns for Last two years (both self and business) along with the computation of income, Balance Sheet and Profit and loss as audited by a CA professional: These documents seek to verify the applicant’s income status prior to making the application for loan which also depicts the individual’s financial picture depicting the credit worthiness of the person
4. Last 6 month’s Bank statement: The bank statement of both the individual and the professional has to be submitted at the time of applying for the loan.
5. Proof of Continuation: Trade license/ Sales Tax Certificate/Establishment/certified copy of partnership deeds/Memorandum of Association (MOA)/Article of Association (AOA) and board of resolution. Any one of the mentioned documents have to submitted by the applicant as these documents help to verify the legal validity and years of existence of the applicant’s business. Required in the case of self-employed individual.

• Proof of educational qualifications: The applicant needs to submit the documents pertaining to his highest educational degree. Applicable only in the case of self-employed professionals.

The organization levies certain fees and services charges on all the personal loans that it issues. The list of service charges and fees is given below:
 

1. Processing Fees: The organization charges a processing fee at the time of loan application. These charges though fixed in certain cases, varies depending upon the applicant’s job profile.
2. Pre-Payment charges: The prepayment charge is levied if an applicant chooses to prepay his loan before the stipulated loan period. This charge is generally, a certain fixed percentage on the outstanding loan amount.
3. Duplicate NOC/No due certificate: The organization issues duplicate copies of NOC or No due certificate at a minimal charge of Rs.550
4. Late Payment Charge: The applicant must make sure that all his EMI’s are paid well in time. IF he/she fails to do so the organization levies a late payment charge standing at the rate of 5% on the outstanding amount from the date of default of the EMI..
5. Cheque Bounce Charges: The organization levies a fixed charge varying from Rs.250 to Rs.500 per cheque bounce instance.
6. Swapping charges:  The organization charges Rs.600 for every swapping instance.
7. Foreclosure charges: the organization levies a foreclosure charge standing at the rate of 4.5% on the principal outstanding amount. However, these charges are exclusive of service tax. Service tax as applicable will be levied over the above mentioned charges.
8. Foreclosure charges on top up loans: The organization levies a foreclosure charge standing at the rate of 2%+S.T on the future principal outstanding of the existing loan.
9. Legal notice: This charge stands at Rs.300 per notice.
10. Loan cancellation charges: if the loan has not been completely disbursed, the borrower can choose to cancel the loan. He will be charged at the rate of 2% on the sanctioned loan amount or Rs.5750, whichever is higher.
11. Post Dated Cheque Charges: The organization levies a PDC charge of Rs.850.
12. Duplicate Repayment Schedule: The organization also issues a duplicate repayment schedule by levying a minimal charge of Rs.550 per schedule.
13. Sec 138 and 25: The organization charges Rs.3400 under these sections.
14. Arbitration Filling: A charge of Rs.4000 is levied against this.
15. Receiver Order District court: A charge of Rs.4000 is levied against this.
16. Notice: A charge of RS.125 is levied against all the notices that the organization issues.
17. Execution of award: A charge of Rs.4000 is levied against this.

The organization provides the facility of EMI calculators. With the help of this calculator, an individual can find out the Equated Monthly Installments as per his eligibility. The applicant can access the organizations site at any time and use the calculator and calculate his EMI depending upon the amount of loan he/she wishes to apply for. All he needs to do is select the amount that he/she wishes to borrow and fill in the interest rate details. After having selected the desired amount, the user now needs to select the tenure (in months) for which he needs the loan, i.e. the repayment period as per his/her convenience. The calculator will immediately calculate the EMI amount and help the individual plan his financials accordingly.EMI and repayment period share an indirect relationship with each other, i.e. the longer the tenure, the lower is the EMI and vice-versa. Using the boxes, the user can exercise various options and play with different repayment period till he/she reaches an EMI amount suitable to him.