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Tata Capital > Blog

Smart ways to Manage Your Home Loan in Time for Retirement

It’s a great feeling to have a space that one can call home, and owning one is a primary objective for most Indians. However, giving away a large chunk of one’s salary as EMIs, month after month, is something all of us dread. Your entire budget revolves around the loan repayment and keeping at it for anything between 10 and 25 years can be a nerve-wracking experience.

However, with a little planning you can manage your finances and the mortgage outgo well. Also, saving and investing in the right products will help you retire with a greater peace of mind. So here are some useful tips.

Restructure your financial blueprint

Prepare a budget sheet after taking into consideration your family’s combined sources of income, list of monthly expenditures, and income from investment – after factoring in other short and long-term goals such as retirement planning.

Assess your risk appetite vis-à-vis investment options. Extending the home loan EMI in your retirement phase can put due stress on your finances. Considering the time period left to repay your loan, you could plan your retirement portfolio. If the loan is relatively new and has a long tenure of repayment, you could consider pre-paying a portion through windfall gain or bonuses. This in turn will help in reducing the EMI and effectively decrease the interest cost on your home loan.

The amount that has been saved on the interest cost by pre-paying a certain portion of your loan can be invested in equity-oriented instruments. Benefits from these equity oriented instruments will help you augment savings that can be deployed to pay off your EMI as you are nearing retirement

In case you have already retired and only have a few more years (3-5) to repay your loan, you will have to make sure that your monthly income post retirement takes the remaining EMI into consideration. Also, do remember you are eligible to get greater tax benefits on the home loan during your post retirement years.

A little goes a long way

A home loan can be quite a liability, but then a home is a permanent asset, and one that appreciates in value – at least over the long term. Let this be your motivation to save wherever possible. From taking public transport to resisting impulse shopping to forgoing annual vacations to eating at home whenever possible, remember that little drops make a mighty ocean. To maximise your financial potential, some hard calls are necessary.

Revise your EMIs

As the years pass and your salary increases, consider an upward revision of the EMI. It’s easy to maintain the status quo, but even a small increase in payment has a considerable effect on the tenure, thanks to the power of compounding. If your family gains any more earning members, it would be good to get them on board to share some of the responsibility.

Involve the family

Even if other family members may not assist financially, they can act as a huge support system. Everyone can do their bit to ease stress and offer motivation. From ensuring that water and electricity are not wasted, to undertaking small repairs and D-I-Y maintenance projects, one can save quite a bit on the operational costs of the household.

Choosing the right lender can help you reduce the stress over the years. Tata Capital offers you home loans at attractive home loan interest rates and flexible repayment options Log on to Tata Capital to check your loan eligibility and apply for a home loan today.

Top Car Releases in 2018 in India

The Indian car market is set to rock in 2018 with a slew of new launches that India has never seen before. All the car segments will see new launches.

We present below our top 10 picks with representation from each segment.

Rolls-Royce Phantom

This is the market belonging to the super rich where price is of no concern. Our pick is the Rolls-Royce Phantom.

At a price tag of Rs 8 crore (Rs 10 crore for customization), car lovers will get the 8th generation Rolls Royce Phantom powered by a 6.75-liter V12 turbocharged twin-engine belting out 900Nm@1700 rpm and 571hp@5000rpm. The highlight of this car is the roof interior resembling a milky way created by hundreds of tiny lights. The ride is super quiet.

Lamborghini Urus

Can you imagine an SUV from the Lamborghini stable? Well, the Lamborghini Urus is a winner all the way. Its power comes from a V8 4-liter twin-turbo engine that can reach 100 Km per hour in just, hold your breath, 3.6 seconds. For that kind of thrill, the SUV costs upwards of Rs 3.5 crore.

Lexus LS 500h

Among the high-end cars dominated by Mercedes, Audi, Volvo, BMW and Lexus, we like the Lexus LS 500h.

This competitor to Mercedes S-Class and BMW-7 Series sports a 3.5-liter V6 petrol engine. The speciality is the twin electric motor delivering 354hp. The cabin boasts front seats with massage, cooling and heating functions adjustable for 28 positions. The rear seats come with additional functions that include individual adjustment capability and backrest with 48-degree tilt and their own ottomans. The price is Rs 1.5 crore.

Tata H5 SUV

Tata Motors will release its H5 SUV. Tata is launching its first SUV built on the JLR platform but with a distinct Tata Motors pedigree. The Tata H5 will accommodate a 140 hp and a 180 hp engine. The price is a mouth-watering Rs. 15-20 lakh in the Jeep Compass and Hyundai Creta range.

Datsun Go Cross

After daring to be different, Datsun from the Nissan family is adding to its Go and Redigo range with an extremely well priced (Rs 5-7 lakh) car that will delight the lower end customers. You will almost get an SUV though the car is at the higher end of the hatch. The features such as fancy tail lights, spoiler, roof tray with rails and projector headlamps will warm the cockles of car enthusiasts. This Cross may become the first 1.5-liter diesel engine car from Datsun.

Hyundai Ioniq

Hyundai is the second largest car manufacturer in India. It is bringing the plug-in hybrid sedan Hyundai Ioniq to the Indian market. The Ioniq sports a 1.6-liter 4 cylinder petrol engine and an 8.9kWh lithium-ion battery to run either on electricity or petrol. Passengers can enjoy a quiet ride within the city when driven on electric power.

Maruti Suzuki Swift

Maruti’s very popular Swift is receiving a thorough makeover with a new engine platform known as HEARTECT. The lighter engine brings more agility to the drive. Besides, the new Swift is up to global standards in safety.

Tata Electric

Tata Motors is bringing two variants in its electric range. The popular Tiago will boast an engine delivering 85 kWh power at 200 Nm torque. Its performance characteristics include a top speed of 135 km per hour and an acceleration of 0-100 km per hour in 11 seconds. Tata is likely to revamp its Nano and launch with an electric engine under a new sub-brand – Pelican.

Ford Freestyle

The Ford Freestyle boasts 3 variants with differing power options – two petrol variants and a diesel variant. The petrol variants offer 17-18 km per litre mileage while the diesel variant will provide 25 km per litre. Ford’s new launch will perk up the Rs 6-8 lakh segment giving its competitors such as Maruti Swift, Honda Jazz and Hyundai Grand i10 a tough fight.

Mahindra S 201

Mahindra is introducing its S 201 model in 2018. Mahindra is using the SsangYong Tivoli platform for this model. The car will boast quality features – an amalgam of Tivoli’s quality features and Mahindra’s penchant for India specific offerings. This is taking on the likes of Renault’s Captur, Hyundai Creta and Maruti’s Vitara Brezza.

The year 2018 promises a great year for car buyers with all the automakers vying for the buyer’s attention with advanced features, new technologies, attractive price points and safety and performance standards including electric powered cars and highly fuel-efficient vehicles.

You can choose any model and we at Tata Capital will finance you with a hassle free car loan perfectly created to meet your needs. You can use our car loan EMI calculator to easily plan your EMIs that you are comfortable to accept. We also offer you used car loan, if you so desire.