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Tata Capital > Blog

Money lessons for this upcoming Ganesh Chaturthi

Among the pantheon of Gods for the Hindus, Lord Ganesh is the God invoked to start a new venture as Lord Ganesh is the God of intelligence and wisdom. More importantly, Indians believe that Lord Ganesh removes any obstacles that may come in the way of the success of the new venture. Indians all across the country celebrate the festival of Ganesh Chaturthi – a 10-day festival that falls as per the lunar calendar translating to different dates each year as per the Gregorian calendar typically in August/September.   

Why are we talking about celebrating the highly revered Ganesh Chaturthi in a financial website? There are important lessons that you can learn from the way people celebrate this festival. Let’s see what lessons we can learn from this long-drawn 10-day festival.

Invoke the Lord to start your financial investment venture

If you have not already started investing for your future financial security, Ganesh Chaturthi is the ideal time to treat it as a new venture and begin during this festival. With the Lord’s blessings, you can use your intelligence to invest wisely and you are bound to succeed as the Lord is there to help you remove any obstacles that you may encounter. This is the best time to firm up your mind and commence a systematic investment plan (SIP) in a mutual fund scheme or commence a recurring deposit scheme. The key point is the regularity of investment with single-minded devotion; just as you would celebrate the festival regularly and with reverence.

Gain knowledge on various investment avenues

The Lord is the God of wisdom and intelligence. You should investigate all avenues for investment and gather as much information as possible and apply your intelligence to firm up plans for a planned investment journey that lets you become financially independent in the near and distant future. You can scour the Internet or you can take up a short-term course or you can follow any of the numerous websites that offer investment advice. 

Learn to invest individually and collectively

You realize that you celebrate Ganesh Chaturthi individually in your home and also collectively in your community. This tells you that you can invest prudently as an individual in various schemes of your own volition or invest in mutual funds which professionals manage for you and millions of investors like you. You can benefit from your own intelligence and the intelligence of others.

Insurance as protection

You invoke the Lord to protect you. Make life insurance and health insurance your financial protectors. This is important because you don’t know when any untoward events may occur that can drain you financially. Besides invoking the Lord, you should wisely invest in insurance schemes to help you tide over difficult times for you and your family. Often, the cost of protection is just about the same as the amount you spend on celebrating the festival. 

Use loans prudently

You may plan your financial affairs very well but you are bound to face some financial difficulties along the way. It is just for such occasions that banks and NBFCs such as Tata Capital provide short-term help to tide over difficult financial situations. Perhaps, your child needs to go on a study tour for which you had not planned. Instead of delving into your savings or breaking some of your long-term investments, you can overcome the difficulty by taking a festival loan or a personal loan extended by Tata Capital. 

Learn financial discipline

When you prepare for celebrating Ganesh Chaturthi, you plan well, provide funds, socialize, exchange gifts, perform the rituals reverently, clean homes and wear new clothes. You repeat this year after year and each year your reverence grows. This teaches you to become disciplined in your financial affairs. If you set goals and set out a plan to achieve those goals then you need to discipline yourself to pursue the plan and implement it faithfully. For instance, if you had to take a personal loan, then you need to evaluate the pros and cons – how much to take, what EMI you can afford, use of tools available such as personal loan EMI calculator, who offers the best terms, ease of obtaining the loan and when to apply for personal loan. If you have learned discipline, then taking the loan is no big deal because you know that you will repay it with little fuss. The above are just a few of the ways in which you can learn a lot from Indian festivals. The significance of the festivals, the way you celebrate them, the reverence with which you celebrate each of them and the disciplined approach you take to prepare for the celebrations especially Ganesh Chaturthi are remarkably prescient and will come in handy in your financial independence journey of your life.There is always NBFCs such as Tata Capital to support you.

Travel Ideas for September

Monsoons are generally a great time to take a break or plan a vacation. There is a refreshing aura around you as you are engulfed by different hues of green, the fragrance of Petrichor that fills your senses and a sense of rejuvenation as the cold drops of water hit the dry land.

As the dry and the wet spell play a game of hide and seek with you, come September and the monsoons start receding making way for cold winter months.  Now, for those who love monsoons but couldn’t manage to get out in time for a monsoon trip, it’s the best time to make the most of the last showers of the year. With intermittent showers and great weather, September is a great time to hang up your work boots and recharge your batteries.

However, a question that maybe making a small nest in your mind would be is September really a good month for a vacation? Well, September is generally considered as offseason or low season in India and many other countries. So you can get exciting steal deals on airfares and hotels, making your holiday really economical.

It’s all about the money

No matter when you decide to go on holiday, it will cost you money. Yes, this sounds a little brash but you will be in for a rude awakening if you think that travelling to a new destination will come on a cheap penny.

Travelling will take up a considerable amount of your budget, but money should not bog you down from taking up that much-deserved break. So what should you do? Dip into your savings? No. Cancel the holiday? Definitely no. Borrow the right amount so you can explore the world? Why, yes.

Now that is a good idea.

A travel loan is an answer to all your travel related funding. A travel loan is a personal loan for travel which covers all your travel costs including accommodation, bookings, internal travel, visa, insurance and daily running costs during the journey.

Initially, personal loans were commonly taken for medical emergencies, home repairs or instant short-term expenditures, but with the growing tribe of travel enthusiasts, personal loan for travel has become increasingly popular.

Financial institutions like Tata Capital, avail travel loans to make your dream holidays come true is very easy. Be it a honeymoon, beach holiday, holiday in the hills, group holidays, family holidays or a grand luxury vacation, research and try to understand how much money you need for your travels. Getting a grasp of your budget helps you avail the right amount of travel loan and also ensures a steady cash flow during the journey.

All you need to know what would be your approximate costing and you can apply for the loan. Include visa, booking, medical expenses, insurance, shopping, accommodation and internal travel expenses during the travel loan budgeting. Don’t forget to include a fixed amount for emergencies to your travel budget. 

Once you budget yourself, all you need is your basic KYC documents and you can apply for a travel loan. If everything is in order, your personal loan for travel would be disbursed in 72 hours.

After you have the monetary woes resolved, it’s time to explore some great destinations to visit in September.

Discovering the beauty of the world

Borneo, Malaysia

Borneo boasts of bountiful rainforests, indigenous cultures, endangered orangutans and plentiful wildlife. If you want to ditch the overcrowded beaches and the concrete cities, and experience nature at its purest form with dense forest parks, pristine secluded beaches and precious moments of solitude, then Borneo is where you need to head to. Borneo is easily accessible from Kuala Lumpur by flights or boats. With your travel loan, you can plan a trip to the best national parks and explore the unknown world of the rain forests.

Maldives

Pristine white sand beaches, stunning underwater world and unparalleled luxury make Maldives one of the best places for a holiday of a lifetime. With a stunning 1200 islands out of which less than half are populated, Maldives boasts of one of the best marine wealth in the world. Dazzling corals, magnificent underwater caves and colourful schools of marine life make it one of the top scuba diving and deep sea diving sites of the world. Plan a monsoon getaway with your family as your personal loan for travel can help you with your international visa as well as choosing a comfortable accommodation for your family.

Australia

Often ignored for the beautiful landscapes of New Zealand, Australia has a lot to offer to the discerning traveller. Great beaches, laidback towns, winemaking countryside, bustling cities and the magnificent Gold Coast, Australia is all that and much more. Soak in the sights of its beautiful cities and head to the beautiful beaches, September offers great weather to enjoy both.  Now, for most travellers heading to Australia can be an expensive affair and hence they put off visiting this beautiful destination. However, your travel loan will take care of all the expenses and you will no longer have to give up your dream of exploring the beauty of Australia.

Turkey

Turkey is the melting point of the ancient and the modern. This historical land is the bridge between the East and the West, joining Asia and Europe. Boasting of a variety of experiences, right from stunning beaches to mountains to hot air balloon rides over Cappadocia to the legendary city of Istanbul, a visit to Turkey is a great experience in itself. September brings in good weather to the country and is an ideal time to visit.

France

The onset of autumn brings out the best weather in Europe, before the cold, dark winter sets in. September is the best time to visit Europe when the sun is out and the weather is warm. A visit to France during this season is ideal. Head to the magnificent capital city of Paris, soak in the stunning beauty of the French Riviera, hang out at the tiny local cafes, soak in the history at Marseilles or Louvre, drive down the quaint countryside, dig in the delectable French cuisine or discover the colourful village markets. France doesn’t disappoint at all! Since your travel loan will help you cover all the expenses try to include a romantic meal with your loved one in some of the best restaurants in France or explore the quaint vineyards of Nice. There are so many more places to visit, memories to be made and experiences to be had in the world. Affordable travel loans make it easier for you to get enriched by these experiences, without creating a dent in your pocket. So go ahead and get set to make great memories!

Petrol price jumps to all time high, here’s how it impacts the micro, small and medium enterprises

Petrol and diesel prices in India are shooting up day by day. Last month in Delhi, the price of petrol peaked at Rs 76.57 per litre – the highest in the last five years. The previous all-time high of Rs 76.06 per litre was recorded in late 2013.

In the last week of May, petrol prices rose to Rs 85.78 per litre in Mumbai, Rs 80.61 per litre in Kolkata, and Rs 80.95 per litre in Chennai. Diesel prices too increased to Rs 68.90 per litre in Delhi, Rs 73.36 per litre in Mumbai, Rs 71.45 per litre in Kolkata, and Rs 72.74 a litre in Chennai.

Oil marketing companies set these prices on a daily basis. Petrol and diesel prices in India are formulated on a number of factors, such as global crude prices, exchange rate, and domestic taxes. Since the retail price of petrol is dependent on excise, when excise is increased, the overall cost consumers pay for fuel also increases.

Soaring fuel prices often lead to inflation, which affects many businesses. But the worst to hit by these price rise and inflationary situation are the small businesses. Rising oil prices push up input costs of small business other than increasing transportation cost. It also affects their position to negotiate prices from manufacturers or wholesalers or to pass inflationary costs on to their consumers.

Also, rising costs lead to lower consumer expenditure, which in turn affect their profit margins. Here are some of the ways suggesting how small companies can overcome this problem:

Supply costs – Businesses that rely extensively on transport of supplies will be badly affected by rising fuel prices. Daily operations are likely to be severely affected. Without receiving timely supplies, businesses may suffer losses. Even if supplies are received on time, the profit margin will suffer due to rising costs.

Rerouting – SMEs and MSMEs that offer services solely dependent on transportation will be the ones most impacted by the rising cost of fuel. Limiting their geographies and altering their routes can be a solution. Also, managing their time and date of multiple deliveries can help them save on making unnecessary trips for the same or closer destinations.

Travel budgets – Many businesses require their executives to travel often. If your business follows this model, you may want to rejig your travel budget. Travelling in comfort may not be an option anymore. Considering the rate at which fuel prices are rising, cutting back on such little luxuries is bound to happen.

Cost-cutting – With petrol and diesel prices reaching record highs, you may wish to minimise costs wherever possible. This includes everything that’s not of utmost necessity. For example, reducing the use of electricity can help. You might have to revisit your account books and figure out if there are unnecessary spends that can be axed.

If the price of crude oil decreases or stabilises, there is some hope that petrol and diesel prices will fall. The alternatives don’t look viable – either the government reduces the taxes on fuel, or oil companies start selling petrol and diesel at a lower price while incurring losses.

However, this should not deter you from going ahead with your entrepreneurial sojourn. But choosing the right partner to fund your business is the key. Tata Capital provides you quick business loans of up to Rs 50 lakh without any collaterals. Log on today to avail one and get started.

11 Travel Apps you need for your next holiday

The best thing about travelling is experiencing the newness of it. New places, new culture, new people… it takes you out of your comfort zone and lets you surround yourself with the best of the world.

Everyone enjoys the perks of travel. It gives you a chance to relax and just let yourself be. However, all things have two sides to it and so does travel. Any kind of travel will cost you money. This is a given fact. There is no such thing as a free lunch or a free vacation either. Unless of course you have hit the lottery or have someone else sponsoring your entire trip.

If you are not as lucky as those people, then chances are you will be funding your solo or family holiday. If already budgeted with your financial goals, then you will not be spending any money from your savings to plan your holiday.

What if you have not started on this? Now, it will be too late to go buy a lottery ticket so you could win, especially when chances are slim.

What do you do? Don’t get worried about it as you can easily apply for a travel loan.

Before you shun the idea of a loan for travel, you should know that this is one of the best ways to still go for the vacation without dipping into your savings.

The concept of a travel loan is very simple. It is a personal loan. It does not require any collateral. It gets disbursed within 72 hours of approval.

Now that these 3 simple things have gotten your attention, you can also check for your travel loan eligibility online before you apply. You can also calculate your EMIs on the personal loan calculator so that you get a good idea about your EMIs as well as your interest rates.

 Like mentioned, applying for a personal loan for travel is simple.

You just need to have your KYC documents in order, with your salary slips and bank statements. You apply and get approved and continue your travel planning. Many NBFC’s like Tata Capital provide personal loans for travel. Their procedure is as simple as the one mentioned above, as they know the importance of a good and satisfying holiday.

With the entire worry about money out of the way, you can start your travel planning without stress. However, now comes the second major aspect of a holiday, the actual planning.

App is the word

Now that you decide to strap on your travel boots and head out to explore the world, there are some things which you absolutely cannot leave without. Topping that list is your passport, credit or debit cards, the right attire and of course your phone.

Without diverting the topic, your phone has become one of the most important instruments in your life. However, did you know you can also plan your entire travel on your phone as well? The right kind of Apps can help you not only plan your holiday but also help you during the holiday period.

Having the right travel aid apps on your phone, before a journey is crucial. Here are a few of the useful ones

1. Expedia: Expedia is your go-to app for air, train, bus bookings including hotels and stays. It’s a one-stop shop for all your travel and accommodation bookings. Expedia is a valuable tool during the course of your journey.

2. Skyscanner: If you are looking for the best airfares for your next trip, Skyscanner is the app to choose from. Once you enter your destination of choice, the app will tell you which of the sites has the best airfares for your destination. If you have budgeted your flight fares while applying for your travel loan you can choose the best flight, irrespective of the cost so you can have a comfortable travel experience.

3. Google Maps: With Google Maps you are never lost! It is one of the best navigation apps amongst the current ones. Though you need a wifi or a data network to download new routes, you can also save unlimited numbers of maps for offline use. The GPS still works without a network signal, making it a very useful tool. So you need not worry about bad network reception. Just set your location and go.

4. Citymapper: Citymapper offers excellent maps to get around in a big unknown city. Along with the maps, you can also look for biking, driving or walking directions, including Uber integration. Citymapper also provides information on convenient exit routes from the train, bus stations and airports.

5. Accuweather: A weather app is an indispensable tool during your travels. Accuweather gives you accurate hourly, daily, monthly and seasonal weather updates, which helps while planning a tour and also during the journey. The app is available in more than 100 languages with minute by minute local forecasts.

6. XE Currency: XE Currency helps out in currency conversion, saving a lot of money in currency exchange while dealing with unfamiliar exchange rates. You can convert all the world currencies right from the important ones like Dollars, Euros, and Pounds to the lesser known currencies across the world. A very useful tool during an international journey.

7. Tripit: Whenever you get an online booking done, forward your booking to Tripit. Tripit makes an automated itinerary for you. The app aggregates all your bookings and sends you timely reminders so that you don’t miss anything.

8. Google Translate: With Google Translate you can never get stuck in an unknown land due to an inability to communicate. Google Translate lets you even download the language for offline use as well. The most interesting feature is the Cue Cards, in which you can type a phrase in your language and the app with a display full-screen translation for you.

9. Airbnb: Airbnb is a boon for the offbeat travellers who are looking for something different than the regular hotel stays. Airbnb offers personalized home stays and a chance to interact with local hosts, who provide invaluable local information. You can enjoy a range of interesting activities like cooking classes, kayak adventures in hiking and trekking and many others. Your personal loan for travel will give you the freedom to stay in the best places so that you are comfortable during your break time.

10. Tripadvisor: Tripadvisor provides you information about everything about the destination, right from the user reviews of the sightseeing options to reviews of hotels and restaurants. The Tripadvisor forum also provides valuable tips and a wealth of information by the users. In addition to all this, the app lets you download free city guides for offline use. Enjoy the best meals, sites and do not worry about where the money will come from because your travel loan will take care of those expenses as well.

11. Uber: Instead of haggling for a local transport or negotiating with cab drivers who quote steep fares or when you are unsure about the address, Uber is your best bet. Uber changes fixed fares from point to point so you get the right fare for your journey. With a widespread global presence, Uber is just an app away! Personal loan for travel are easy to avail and are short-term based, which does not affect your credit history much. You can pay it off in easy installments and not have to worry about finances while you enjoy your dream vacation. In the end, travel is not just the destination, but a journey, they say. So do not let monetary woes bog you down. With easy travel loans, your dream holiday is just a click away.

Tips to consider while using the personal loan as your down payment

Owning a house is every person’s dream, and that, too, a legit one. After all, who wants to stay in rented apartments and shift places every two to three years? However, owning your own place is no child’s play if you haven’t saved up enough for the down payment. Now, just because you do not have enough resources for down payment does not mean you should give up on your dream house.

While your home loan will help you buy that house, wouldn’t you wish there was some special loan that could be used for down payment as well?

Well, there actually is a way to use a loan for down payments.

This is exactly what are personal loans meant for. Magical as it may sound, personal loans may be the answer to all your worries. You can easily use personal loans for a down payment of your property. Financial institutions like Tata Capital let you avail personal loans for down payment of your home.

Now, before you jump with joy and avail your personal loan, there are, of course, a few considerations to be made, and crucial things to keep in mind. Here are the five tips to consider while using the personal loan as your down payment:

1. Taking a personal loan for down payment means you will have two loans to repay. One, the EMI of your personal loan, two, the home loan EMI. Look into your finances to assess if you are in a position to repay two loans simultaneously, alongside your regular expenses.

2. Personal loans have a higher rate of interest compared to home loans. While home loans come at around 8.5 to 9 per cent interests, personal loan interest can range from anywhere between 11 to 20 per cent. Are you ready to pay this? Think.

3. One of the biggest advantages of personal loans is that the borrower can avail tax benefits on personal loan if he or she plans to use the funds to make the down payment for a house or do any kind of renovation work. One can claim up to Rs. 2 lakh on the interest paid against a personal loan. Now, that’s an exciting offer, isn’t it?

4. Using a personal loan for a downpayment of your property means you will not have to touch your savings or funds that you have set aside for medical emergencies, your child’s higher education or say, that dream vacation or for even buying a vehicle. Your savings remain untouched, while you repay the loan on a monthly basis from your current income.

5. When availing of a personal loan for down payment alongside a home loan, remember that the sum of both your EMIs should not exceed 40 per cent of your net monthly income. For instance, if you have zeroed in on a property worth Rs. 40 lakh, you will get a home loan for 80 per cent that is Rs. 32 lakh. Your monthly EMI for this at the rate of 8.35 per cent for 20 years is going to be approximately Rs. 27,470 per month.

For the rest Rs. 8 lakh, you have to take a personal loan, and the EMI for that will be approximately Rs. 17,800 at the rate of 12 per cent for a tenure of five years. So your combined EMI will be Rs. 45,270. For a lender to approve this combined EMI of Rs. 45,270, your monthly income should be about Rs. 1, 13, 175. Are you earning that much? Do the math, and you are set to own your dream house. 

A personal loan from institutions like Tata Capital is the answer for you when you have found the place of your dreams. A little thought and some basic calculations can help you figure out how you can use your personal loan for down payment as well as manage the home loan that you would want to avail for the home. It’s never too late to find your dream home. Go ahead and start planning.

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A Top Up Home Loan can help with your home refurbishment needs

To own a house is a dream. It’s your place to call your own and you always want your abode to look beautiful and perfect. As we know, everything cannot be always perfect. There comes a time, as a homeowner you realise that your home also needs some amount of work done. Be it refurbishing of the exterior, adding an additional room or any sort of home repairs.

However, it is a not a simple task. Apart from your investment of time, it also needs an investment of funds.

In a less than ideal situation, you would forgo the repairs and maintenance and wait until you have saved up some money till you can start any work. However, this would mean that you would be dipping and depleting into your future savings. How do you go about this?

A quick and easy solution is to consider a Top-up Home loan.

What is a Top-up Home Loan?

To begin with, a top-up home loan is not a new loan but just an addition to your already existing home loans.

This loan can be taken even after your existing home loan has been disbursed and you have been successful repaying your EMIs. One of the best things about a top-up home loan is that you would not be required to be going through the loan formalities all over again. The previously done loan documentation and collaterals are sufficient for a top-up loan with just minimal documents to support the loan application.

This saves time, effort and cost of applying for a fresh loan.

Who can apply for a top-up home loan?

You can easily avail a top-up home loan facility from the existing lender, over the existing home loan, which you have availed from them. The procedural formalities are already fulfilled and make further funding quick and easy.

You can apply for a home top-up loan after a repayment track record of minimum six months on your existing home loan.

The major features of the home top-up loan are:

  • The home top-up loan can be repaid in regular EMIs over a maximum term of 15 years
  • The loan amount and term depends on the customer’s profile, age, income level and the repayment scheme chosen by the customer, among other factors
  • The top-up home loan amount is subject to the outstanding home loan and the top-up loan being offered, not exceeding the 75 to 80% of the market value of the property. However, the maximum amount of top-up loan on home loan possible is Rs. 50 lakh

Some years back, Raman Venugopal bought a beautiful house in a tranquil locality of Chennai. Since he did not have the initial funds, he had opted for a home loan. As the years passed, he realised it was time for his children to have their own rooms. However, he knew that his budget won’t cover the costs of refurbishing an extension of the house. His friends suggested him to apply for a top-up home loan on his existing Home loan.

Most of the new-age financial institutions such as Tata Capital apart from offering home loans, also offer top-up home loans for additional credit in times of need with minimum hassles for their customers. The top-up home loan can be availed for a variety of reasons, be it construction on new floor or rooms, renovation of the house, etc. An advantage of top-up home loans is the fact that the loan application minimal required documents and is processed quickly, as there is already an ongoing relationship and a repayment track record with the lender. They also have lower interest rates as compared to consumer/commercial loans.

Learn about tax benefits on loans in India

Perhaps it is an act of nature that Indians revel in taking loans for almost any purpose. Often, we have to take loans because we do not have the ready funds. Most loans are need-based such as for building a home, educating a child, purchase of a two-wheeler or car, starting a business venture, wedding in the family, meeting a health-related expense or purchase of household goods.

While the repayment of the loan is of paramount importance it is pertinent to note that there are numerous tax benefits available to the borrower on the repayment covering both the repayment of principal amount and payment of interest towards the loan. 

To serve as an income tax guide, we recount below the income-tax benefits available to you on different loans.

Home Loan

Owning a home is the dream of every Indian and this dream is achievable with the home loan product offered by most financial institutions including banks and NBFCs such as Tata Capital.

When you avail a home loan you can get tax benefits that include

  • Deduction of repayment of principal amount from the taxable income for the year under Section 80C along with others up to an aggregate of Rs 1,50,000
  • Deduction of interest payment towards home loan under Section 24(b). This section provides the conditions under which you can claim the deduction. For instance, you can claim up to Rs 2 lakh deduction if you have taken a loan for a self-occupied house. You can claim the entire interest if you have taken a loan for a let-out house. Further, you can set off this interest against any other head of income up to Rs 2 lakh and carry forward any amount that is not set off for a period of 8 years.      
  • Deduction of interest payment towards home loan under Section 80EE. This deduction is available only to first time home buyers. This section sets out conditions under which you can claim deduction up to a maximum of Rs 50,000 in the year.

From the tax benefits available as above, it makes good sense to buy a home out of borrowed funds rather than use own funds thus saving tax, which otherwise you would have paid.

Education Loan

In today’s competitive world higher education is necessary to succeed. But the cost of higher education is rather steep and many meritorious students belonging to the non-affluent sections of society cannot afford the high cost of higher education. Fortunately, there are lenders who extend education loans to needy students. Besides, the government also provides incentives in the form of tax benefits to students who avail education loan.    

When you avail an education loan you can get tax benefits that include

  • Deduction of interest payment towards education loan without any limit under Section 80E for a period of maximum 8 years after commencement of repayment
  • Charge of simple interest on the loan during the study period
  • 1- year moratorium after completion of the study or securing a job whichever is earlier
  • Liberal repayment period 

Since higher education is a desirable objective, the availability of education loans from lenders such as Tata Capital and the concomitant tax benefits make taking education loan highly beneficial.

Business Loan

NBFCs such as Tata Capital provide loans to businessmen who are in need of funds to start a business venture or expand their existing businesses.

When you avail a business loan you can deduct the following

  • Interest paid towards servicing the business loan as a deductible expense from your firm’s gross revenue before arriving at gross income

Thus, when in need you can take a business loan and claim expenses towards payment of interest as tax deductible.

Car Loan

Car loans extended by NBFCs such as Tata Capital serve as capital when using the vehicle for business purposes. This loan qualifies as a business loan and the expenses incurred in running and maintaining the vehicle along with the interest paid towards servicing the car loan is deductible from gross income of the business.  

Personal Loan

Almost all NBFCs including Tata Capital offer personal loan to benefit borrowers in need of quick funds for some purpose or the other. Such loans are easy to obtain without too much of formalities because they are generally unsecured loans. Usually, borrows take recourse to these loans when they exhaust limits on other forms of loans such as home loans or education loans.

In general, personal loans do not qualify for any deduction. However, in cases where you use the loan amount for business purposes or for acquiring a home, you can claim

  • Deduction of interest towards repaying the personal loan amount specifically identifiable for the use of acquiring a home under Section 24(b) of the Income-tax Act
  • Deduction of interest towards repaying the personal loan amount from gross income specifically identifiable as deployed for business

Thus, a personal loan can come in handy with tax benefits as well.  We at Tata Capital offer you all types of loans and we urge you to avail any of our loans to take advantage of the many tax benefits available under various sections of the Income-tax Act.

Ways to prevent home loan applications from getting rejected

A large number of home loan applicants get the shock of their lives when they discover that their application has been rejected. There are many reasons for which your home loan can be rejected by a lender or a bank. The best way to prepare for such a situation is to prepare in advance so that all holes are covered when it comes to your loan application.

Never keep unpaid dues

Home loan applications are often cancelled when credit history check reveals unpaid dues. To clear this condition, always be punctual with payments. Never miss a deadline on EMIs and credit card dues.  In this small way, you can ensure your home loan application is one-step closer to approval.

Avoid heavy debt

Home loans are given when the lender is comfortable with your capacity and intention to repay. If you have more debt, your existing repayments may make it look difficult to repay new home loan EMI. Hence, don’t take too much debt even if they are offered at lip-smacking rates.

Stick to jobs longer

Job stability is a big factor for long-term loans. Changing too many jobs reflects poorly on the home loan application. So, stick to jobs longer and apply for a home loan once you are 2-3 years with. current employer. Also, the reputation of your employer is important. So, avoid seeking employment in a company that has a questionable track record.

Avoid being a loan guarantor to others

Being a loan guarantor to someone can sometimes be risky. If the person doesn’t pay the loan back, the onus to repay is on you as a guarantor. You may have gone to a different city to live, not knowing the original borrower has defaulted. This is recorded on your credit history and can lead to home loan application getting rejected. The safest way is to avoid becoming a guarantor altogether. 

File regular Income Tax Returns

Banks and financial institutions are uncomfortable about lending to individuals who font file income tax returns or ITRs. Build a clear track record of filing income tax returns of the last two years, before applying for a home loan. The ITR also serve as a document for demonstrating your income credentials. So, pay taxes and file returns on time.

Pick up verification calls

Many home loan applicants give wrong telephone numbers or don’t pick up calls from lenders when they come during the application process. In case, the financial institution calls you repeatedly and every time you are away at work or busy elsewhere, they simply consider it as ‘no response’. So, be sure to give correct numbers and pick up calls.

Get NOC on all previous loans It is highly important that you get a NOC or No Objection Certificate on any or all previously closed loans. Rejections on your home loan application may occur if one does not provide a NOC. It’s better to get NOCs from every loan provider once you have closed the loan. Keep these documents safely.