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Tips to Reduce Home Loan EMI

Those of you who have taken home loans know that EMIs reduce your monthly budget by 30% to 40%. Paying bulky EMIs means a further reduction in disposable income that may lead to drastic lifestyle changes. But, this cash crunch can be reduced by cutting down your EMI amount. How? Continue reading to find out more.

Compare Home Loan Interest Rates Online

The Internet has made home loan shopping more efficient than ever before. Now you can get the best home loan interest rates by scouring the net and visiting stand-alone portals or aggregator websites that give you a summary of various home loan ROIs, fees and other charges. For instance, Tata Capital’s web portal offers you competitive home loan interest rates starting at just 9.05%. Availing housing finance is a big investment and you should dedicate a substantial amount of time researching the best ROI to reduce your EMI.

Compare Home Loan Interest Rates Online

Opt for Longer Home Loan Tenure

Increasing your loan’s tenure decreases your EMI. However, it is recommended that you opt for a long tenure only if you are sure that you will be unable to sustain a higher EMI. When you opt for an extended loan tenure, your EMI goes down but, you end up paying more interest on your outstanding amount. 

Opt for Longer Home Loan Tenure

Save Enough for a Big Down Payment

Home loans are generally not sanctioned for the entire price of the property. Banks and NBFCs award a home loan for 80% to 90% of the total value. The remaining 10% to 20% is brought in by the buyer as a down payment. However, if you arrange more than the minimum down payment, you will bring down your EMI significantly. The more you contribute towards your LTV or Loan-to-Value ratio, the lesser your EMI sum. A higher down payment capability also increases your home loan eligibility, thus increasing the chances of loan approval.   

Save Enough for a Big Down Payment

Additional Read:- 10 Benefits of Taking a Home Loan

Renegotiate or Refinance Your Home Loan

If you have maintained a trustworthy relationship with your lender by never defaulting on your EMI payments, you can renegotiate the terms of your home loan. It is not uncommon for lenders to reduce ROIs during your tenure. Alternatively, if you find out that another lender is willing to provide you with housing finance at a lower ROI, go for it. Switching lenders to reduce your EMI in the middle of your loan tenure is no problem, and sometimes recommended.

Refinance Your Home Loan

Prepay Your Home Loan Once Every Year

Any surplus amount left in your bank account at the end of the year should ideally be used to make pre-payments towards your home loan. Prepaying towards the beginning of your loan tenure is a better idea, as it also reduced the overall ROI payments. Surplus finances can include money received from annual bonuses, market investments, etc.

Prepay Your Home Loan

Additional Read:- How to Make Financial Planning Easy with Home Loan EMI Calculator

Summarizing

Before opting for a home loan, use our reliable home loan EMI calculator to customize your EMI payments. We offer home loans at attractive ROIs and can also transfer your home loan balance from your previous lender if you are not satisfied with your current loan agreement. 

Tax Benefits of SME Loans in India

SME loans are one of the most popular financing options for small and medium enterprises looking to expand operations, buy new machinery, hire staff, etc. However, can business owners avail tax benefits on such loans? Let’s find out.

1. What is an SME Loan?

Small and Medium-Sized Enterprises (SME) are small-scale units wherein capital investment is in the range of Rs. 25 lakhs – 10 crores. Loans meant specifically to offer financial support to such businesses are known as SME loans or MSME loans. Typically, such loans are of two types – secured (collateral required) and unsecured (collateral not needed).

As per the Income Tax Act, 1961, a borrower is eligible for different types of tax benefits on loan repayments, SME loans or otherwise.

SME Apllication Form

2. Tax Benefits on SME Loans

A small business loan is availed to grow or expand a company. Because these involve a repayment tenure during which the business registers expenses (interest payments), income tax benefits are available to the borrower on such interest charges.

A businessman pays tax on their net income during a financial year; some expenses are subtracted from the gross income to arrive at the net income. The EMI paid on loan is one such expense, which can significantly reduce one’s taxable income. Before you apply for an SME loan, do check interest rates, processing fees, and other charges to evaluate the tax benefits of the loan. 

In India, the payment of interest on an SME loan is tax-deductible, an amount that is deducted from the business owner’s gross income to calculate the net income. To avail this benefit, you must maintain updated  and proper financial records for these payments to the lender.

Additional Read:- Guide for First-Time SME Loan Applicants

SME Tax Benefits

3. Is the Principal Tax-Deductible?

As opposed to the interest, the principal on an SME loan is not tax-deductible since it is just a borrowed amount and not income. Thus, in the case of small business loans, the repayment of the principal is not a tax-deductible entity but only a process of returning the borrowed money. 

Is the Principal Tax-Deductible

4. Applying for an SME Loan

Applying for a business loan is relatively easy in a time when technology is prevalent. One important thing to note here is that the loan must be repaid during a specified period. Thus, if you’re looking to take out an SME loan, be very sure of your requirements and the company’s financial situation. Once you’re confident an MSME loan is a great idea to expand your business, select a lender of your choice and apply for your loan through a simple online application process.

You can apply online or visit the nearest branch of the lender. Then, fill up your details in the application form and furnish the requested documents. Upon receiving your application, your details and documents will be verified after which the loan will be sanctioned. Shortly after approval, the loan money will be transferred to your bank account.

Applying for an SME Loan

Additional Read:- Top Things to Know About an SME Loan Agreement

Looking for a reliable SME loan lender? Contact Tata Capital! We understand the importance of SMEs to the Indian economy. This is why we make it easy for small businesses to get the financial support they need at the right time. Visit Tata Capital today and use our business loan EMI calculator to determine your eligibility and EMIs. Get in touch today!

RBI Press Conference on Monetary Relief Measures in the Time of COVID-19: Key Takeaways

The COVID-19 pandemic has caused wide-spread disruption throughout the world. In addition to causing health-related distress, the pandemic has also had a significantly adverse impact on the global financial and economic environment. Quick on the heels of India’s Finance Minister Nirmala Sitharaman’s relief package announcement, the Reserve Bank of India also stepped in to declare a slew of financial relaxations to tackle the situation.

In a press conference made today, the RBI Governor Shaktikanta Das came out with several measures to stem the distress on the country’s economy. Here are the most important takeaways and highlights from the RBI announcement.  

Moratorium on EMI payments

The Reserve Bank of India has given permission to all lending institutions such as NBFCs, financial institutions, and banks, both commercial and co-operative, to allow a 3-month moratorium on EMI payments on all term loans outstanding as on March 1, 2020. This measure would undoubtedly ease the amount of financial stress piling up on the common public due to wide-spread lockdowns and restrictions.

However, according to the RBI announcement, it has merely given the go-ahead to lending institutions to allow a moratorium on EMIs. The onus is now on these institutions to follow through and declare a temporary deferment of term loan EMI collections. If you’re currently servicing any term loans, contact your lending institution to get a confirmation on the implementation of this moratorium.

Deferment of interest on working capital

The measures for financial relaxations were also extended by the RBI to cover corporates, MSMEs, and other legal entities currently servicing working capital facilities. As per the RBI announcement, all the lending institutions in India are being allowed to grant a temporary suspension on the payment of interest on working capital facilities outstanding as on March 1, 2020.

Similar to the RBI’s moratorium on EMI payments, this deferment on the payment of interest on working capital facilities would also be valid for 3 months. Additionally, this deferment would be applicable on all kinds of working capital sanctioned, including both cash credit and overdraft facilities. The interest payable on such facilities would still continue to accumulate and shall be payable only after the deferment period expires. Here too, the onus of declaration of interest deferment rests on the lending institutions.

Easing of working capital financing

This is another major measure taken by the RBI as part of providing financial relaxations to companies, MSMEs, and other legal entities. According to the RBI announcement, lending institutions are free to recalculate the working capital cycle of all borrowers who have availed working capital by way of cash credit or overdraft facilities. Additionally, the institutions are also permitted to reassess the drawing power of the borrowers by reducing margins.

The Reserve Bank of India has assured the lending institutions that any of the above-mentioned changes in the terms of working capital credit would not result in a downgrade in asset classification. This effectively means that these concessions would not convert the assets of the lending institutions into non-performing assets (NPAs).

The RBI announcement has also further clarified that the temporary suspension of payment of term loan EMIs, interest on working capital, and any other changes in the working capital facilities would not be classified as a default by Credit Information Companies (CICs). Also, the CICs have been instructed to make sure that the credit history of the relevant parties is in no way adversely impacted by these announcements.

Other key financial relaxations and measures

In addition to these three important relaxations, the RBI has also announced several other measures to help combat the slump in the economy. Briefly listed below are some such measures.

  1. To kick start growth, the RBI decided to maintain an accommodative stance with the monetary policy.
  2. The repo rate was significantly reduced by 75 basis points, with the current repo rate standing at 4.4% after the cut.
  3. The reverse repo rate was also cut by 90 basis points, bringing it down to just 4%.
  4. Introduction of several liquidity-boosting measures such as auctioning of targeted term repos worth Rs. 1 lakh crore and reduction in the Cash Reserve Ratio (CRR) of banks by 100 basis points to 3%.
  5. The RBI has also made a reduction in the minimum daily CRR requirement to 80% from the existing 90% and increased the Marginal Standing Facility (MSF) limit to 3% from 2%.
  6. The implementation of Net Stable Funding Ratio (NSFR), which was supposed to go live from April 1, 2020, has been deferred by six months to October 1, 2020.
  7. The implementation of the last tranche of Capital Conservation Buffer (CCB) of 0.625% was also deferred to September 30, 2020.
  8. Banks that operate under the International Financial Services Centre (IFSC) Banking Units are now permitted to deal in Offshore Non-Deliverable Rupee Derivative Markets. 

Conclusion  

Given the current scenario, these measures appear to be the need of the hour. However, it remains to be seen whether they alone will be sufficient or whether they will need to be supplemented with more fiscal relief measures, depending on how the course of the global pandemic plays out in the Indian context.

To know in detail about the RBI’s Moratorium, click on the know more button below.

New Business Loan Schemes for SMEs

Small and medium enterprises (SME) are the lifeblood of the Indian economy, with more than 40 million SMEs presently involved in fields like manufacturing, services, IT, food processing, etc. One of the biggest challenges facing a small business is that of growth. As opposed to the Big Players, SMEs don’t possess the capital required to expand. This is why so many of them seek MSME and business loans.

Recognising the sector’s importance to our economy, the government has launched various business loan schemes to boost small and medium enterprises. If you’re looking for external financing for your business, here are some of the top SME loan schemes you can choose from.

MSME Loan in 59 Minutes

Launched by the Indian government, this MSME loan scheme offers a working capital loan of up to Rs. 1 crore in just 59 minutes! The interest rate starts at 8%, and you can choose from a number of lenders. For women entrepreneurs, a reservation of 3% is available; a move that aims to encourage women starting up. If your business is registered for GST, a rebate of 2%, up to Rs. 1 crore, is also available. The business loan application process is simple, requiring minimal documentation, and can be completed online.

MUDRA Business Loan

The Micro Units Development and Refinance Agency (MUDRA) has a small business loan scheme that supports small businesses with low-cost credit. MUDRA loans can be secured through public and private banks, NBFCs, co-operative societies, scheduled commercial banks, etc. Any MSME operating in the manufacturing, trading, or services sector is eligible for this SME loan.

Additional Read:- Top Things to Know About an SME Loan Agreement

To further facilitate quick funding for SMEs, the government has also introduced the MUDRA Card, which offers a working capital loan as a cash credit arrangement. This card is issued as a debit card against the MUDRA loan account. You can use this card to withdraw funds from your MUDRA loan account, make POS purchases, and even withdraw cash from ATMs.

Credit Guarantee Scheme for Micro and Small Enterprises

The CGTMSE has been instituted to facilitate collateral-free MSME loans to both new and established businesses. It provides working capital loans and term loans of up to Rs. 10 lakhs without requiring any collateral. Under this SME loan scheme, you can avail a guarantee cover up to 75% of the amount sanctioned for the credit facility. For SMEs owned and operated by women and those in the North-Eastern region, the cover goes up to 80%.

Stand-Up India Scheme

This SME loan scheme is meant specifically for Scheduled Caste (SC)/Scheduled Tribe (ST)/women entrepreneurs engaged in the manufacturing, trading, or services sector. The MSME loan provided is composite in nature, i.e., it includes both working capital and a term loan.

Additional Read:- Difference Between SME Loans and Business Loans

Applying for MSME Loans

While government business loan schemes for MSMEs cover a variety of needs, they often come with prerequisites and caps. To get a fast and collateral-free business loan, come to Tata Capital. With competitive MSME loan interest rates and flexible tenures, we give your small business just the financial support it needs. Use our business loan EMI calculator to calculate monthly payments with a break-up of the interest and principal amount. Contact us today!

Keep These Documents Ready For Home Loan Balance Transfer

To buy a house is a dream in every person’s life and the best way to fulfil this dream is to opt for home loans. However, home loans are a substantial financial commitment which is why you require proper budget planning so that you can pay your home loan EMIs without disrupting your lifestyle. To make better-informed decisions, always check your home loan eligibility before applying for a housing loan.

The loan tenure, monthly instalments, and the home loan interest rates differ from lender to lender. This is why it is best to compare different loan providers before making your final decision. To help you sort your finances better, you can even take the help of a home loan EMI calculator. This home loan calculator is usually available on the lender’s website. It can help you in understanding your housing needs and help you in making appropriate monthly budget allocations. 

Nevertheless, even after proper planning, you might feel that you are paying a huge interest rate on your loan with your current lender. In such a case, the best thing to do is to find a new lender who has a more favourable interest rate and use the home loan balance transfer facility. 

Additional Read:- Process of Balance Transfer Explained

What is a home loan balance transfer?

The home loan balance transfer is a process through which you can transfer your entire outstanding home loan amount from your current lender to a new one offering you a better rate of interest. In these cases, the lender who initially provided you with the loan gets the unpaid principal amount, whereas, you will now be required to pay your EMIs at the interest rate that is offered by your new lender. A home loan balance transfer makes your home loan more budget-friendly and also lets you avail various benefits that are offered by your new lender. 

Documents Required for a Home Loan Balance Transfer

Most lending institutions will ask for the following documents for a home loan balance transfer –

  • Age Proof documents-Valid Passport or Driving License or PAN Card or Birth Certificate or Life Insurance Policy or School Leaving Certificate  
  • Identity Proof documents- Voter ID or Passport or Driving License or Aadhar Card or PAN Card 
  • Address Proof documents- Utility bills or Bank Statements or Property Registration Documents or Property Tax Receipt or Voter ID Card
  • KYC documents
  • Home loan approval letter 
  • Interest certificates from the initial lender 
  • Foreclosure letter or the latest principal outstanding 
  • Income Proof documents- Your last six months’ operative current account statement or the copy of the last three years’ P/L Projection Statement or Bank statements for the last six months of CC, OD facilities (if taken)

An important note to remember is that the documents required may vary from case to case based on your profile.

Additional Read:- Top Benefits of Home Loan Balance Transfer

Why Should You Choose Tata Capital?

The interest rate is the primary reason behind you wanting to move to a new lender. Tata Capital’s home loan interest rates are one of the lowest, starting at just 9.25%! While transferring your home loan, you should always find out whether your new lender can extend you the loan amount that you need or not. Tata Capital provides home loans that range from Rs. 2 lakhs to Rs. 5 crores. Moreover, at Tata Capital, you also get loan tenure up to 30 years. 

Contact us or visit our website today to know more about home loan balance transfer!

How to Qualify for Startup India Action Plan

In a growing economy like India, start-ups and small businesses are major growth drivers. However, they face a lot of challenges like a lack of experience, weak cash flows, and an inability to get business loans. To offer them a healthy business environment, the government has launched several schemes. Launched in 2015, the Start-up India scheme aims to nurture entrepreneurs and help them scale their business. Let’s take a look at the scheme and how you can qualify for it.


1. What is Startup India?

The Start-up India scheme falls under the purview Ministry of Commerce and Industry, launched to help entrepreneurs navigate the process of setting up and growing a business. The primary aim of the scheme is to promote start-ups and generate employment. The Start-ups India scheme has launched several programs to build a solid start-ups ecosystem, which are managed by the Department for Industrial Policy and Promotion (DPIIT).

Following the launch of the Start-up India initiative, the Prime Minister Shri Narendra Modi released the Start-up India Action Plan. Following are some benefits that start-ups get as part of the Plan –

  • Tax exemption for 3 years
  • Discount on patent fee
  • Fast-track patent examination
  • Tax exemption on capital gains
  • A Rs. 10,000 crore fund
  • Credit Guarantee mechanism since start-ups face unique funding challenges like a lack of access to business loans and start-up loans
  • Research parks and innovation centres

2. How is a Startup Defined?

The scheme defines a start-up as a new entity that has been in existence for less than 10 years. The company must be registered in India under The Companies Act 2013, The Partnership Act 1932, or the Limited Liability Partnership Act, 2002. Companies that deal in technology, intellectual property, software, or new products are characterised as start-ups. However, one-person companies are not eligible.

Start Up India Action Plan

Additional Read:- Difference Between Start-up and SME Loan

3. Eligibility for the Startup India Action Plan

To qualify for the Start-up India Action plan, a start-up must fulfil the followings conditions –

  1. The start-up must be incorporated or registered in India for less than 7 years. For biotechnology start-ups, the limit is 10 years
  2. The annual turnover must not exceed Rs. 25 crores
  3. The entity must not be formed by the splitting up or reconstruction of an existing business
Eligibility of Start Up India Action Plan

4. Qualifying for the Startup India Action Plan

To qualify for the Start-up India Action Plan, a start-up must be working towards the innovation, development, or commercialization of a new product, process or service. Technology and intellectual property must be an intricate part of the business. In short, the cause must be a new and innovative one. The registration must be done online by Private Limited Companies, LLPs, or Partnership Firms. The following documents must be submitted with the application:

  • Certificate of Incorporation or Registration
  • A letter indicating that the entity is involved in an innovative product/service
  • A letter indicating that the business is scalable
  • Address of the business location and specify the nature of business
  • Contact details and PAN of the company

To register for the scheme, visit the online portal of DPIIT or use their mobile app. Once you’ve submitted all documents, you will either receive recognition as a start-up or be rejected. Upon receiving the recognition, a start-up is eligible to avail the benefits of the Action Plan.

Additional Read:- Impact of GST on Startups

If you’re a start-up looking to expand, choose Tata Capital’s easy business loans. Visit our website to use our business loan EMI calculator and start your business loan application process today!

How is Home Extension Loan Different From a Home Renovation Loan

Buying a house is a dream come true for many. Your home is a direct reflection of who you are as a person. This is why your home needs continuous upgrades to maintain its comfort and visual appeal. Improving your home, whether to change its look or to accommodate your growing family, comes at a massive cost. This is why financial institutions provide home loans for your specific home purposes. Examples of such loans are home renovation loans and home extension loans.

What is a home extension loan?

As your family grows or your children grow older, you might often feel a space crunch. Instead of shifting to a new bigger house, you can decide to get a home extension with the help of home extension loans. Home extension loans are the perfect solution for when you want to extend your current house to increase your living space. Home extension loans are seen as a housing solution that provides you with finance to meet the extension cost. 

Home Extension Loan

Benefits of home extension loans

  • No need to shift

Shifting to a new house in a new neighbourhood can be quite bothersome, especially since you are accustomed to your surroundings. But with a home extension loan, you can add a floor or a room in your existing house and efficiently meet your space requirements without having to shift.

  • Easy to obtain

A significant benefit of home extension loans is that these loans are straightforward to apply and receive. They require minimal documentation, and the entire application process can be completed online.

  • Long tenure

Home extension loans are somewhat similar to housing loans in that they are also given for a long tenure, and you can make your repayment through monthly EMIs.

Long tenure

What is a home renovation loan?

If you want your house to reflect your style and personality, then opting for a home renovation loan to improve your house is the best decision. Home renovation loans allow you to remodel or repair your house. Whether you are looking to remodel your kitchen or design your children’s nursery, this loan will help you give your home a new look.

Home Renovation Loan

Additional Read:- Can Renovating your Home Save Tax?

Benefits of home renovation loans

  • Affordable interest rates

Home renovation loans come at affordable and fixed interest rates. This ensures that you are not going overboard with your finances to pay back the money that you borrowed. 

  • Hassle-free process

You don’t need to go through the hassle of submitting multiple documents to avail a home renovation loan. You only require a few primary documents to avail this loan. The entire application process for a home renovation loan requires minimal documentation and can be completed online in a quick and hassle-free manner.

  • No Collateral

Most lenders do not ask for any collateral or security for their home renovation loans. This makes such loans a low-risk borrowing option.

  • One-stop shop

With multiple loan options in the market, it has become easy to get loans for your specific home requirements. All you have to know is what your exact needs are.

Along with providing home extension loans, Tata Capital also provides housing finance at attractive home loan interest rates. If you are looking to apply for home loan, then head to our website and check your home loan eligibility by using our reliable home loan EMI calculator. Our home loan calculator will help you in sorting your monthly budget allocations. Once you have an idea of your monthly finances, you can easily apply for a home loan online with us.

Additional Read:- Home Loan for Purchasing Residential Plot

So, what are you waiting for? Contact us to know more about easy home loan options.

How Does a Machinery Loan Help You Boost Your Business?

For a growing business, a machinery loan can be immensely useful. If you run a manufacturing business, you understand the importance of updated equipment and machinery in sustaining operations. If you are looking to add machinery but a lack of adequate funds is the problem, a title=”Business Loan” business loan will allow you to invest in the right equipment and continue production.

Machinery loans are available at nominal interest rates, don’t need any collateral, and have an easy application process. Interested to know more about them? Use a simple online tool such as the business loan EMI calculator to calculate your monthly repayments before you apply for the loan.

Now, let us understand how a machinery loan can help you boost your business.

1. Improves Productivity

A loan for machinery purchase allows you to purchase upgraded equipment without straining your business’ bank account. With new technology at its disposal, your business can produce more units in less time. As a factory’s productivity rises, it can push more products and ultimately boost sales. Moreover, upgraded machinery produces quality products, which will further increase customer trust in the products.

Improves Productivity

2. Improves Turnaround

A business loan for machinery helps improve turnaround time – with the latest machinery and tools, a business can complete orders in a timely manner. With obsolete or damaged machinery, turnaround is greater, ultimately affecting a business’ reputation in the market.

Improves Turnaround

3. Capitalize on New Business Opportunities

Imagine your business receives a large order out of the blue, fulfilling which requires not just additional manpower but also more machines. Buying new equipment to fulfil such new opportunities can be tricky, especially if your business suffers from erratic cash flows. In such cases, a machinery loan will help you either purchase or lease machinery, quickly giving you access to the required funds.

Capitalize on New Business Opportunities

4. Updated Equipment

Over the course of time, machinery undergoes natural wear and tear and may need care and regular maintenance. Sometimes, you may need to temporarily retire machinery for updates and repairs. In such a case, production is likely to be hindered. A loan for machinery purchase allows you take on additional equipment as and when required, ensuring that your business’ operations aren’t stalled.

Updated Equipment

5. Higher Profits

A business loan for machinery can help with increasing profits. As productivity increases and sales improve, the business will ultimately benefit in terms of increased profits. Moreover, higher production will decrease the cost of production per unit, which can also result in higher profits margins for the business.

Higher Profits

It is clear that a machinery loan can take your business operations to the next level. To apply for a loan, visit Tata Capital’s website today and take a look at our eligibility criteria. Contact us for collateral-free machinery loans and other kinds of business loans meant specifically for small business owners. With competitive interest rates and flexible repayment options, we help your venture expand its footprints in every direction.

Additional Reads: Factors Affecting Eligibility of Machinery Loan

Contact us today to understand how our machinery loans can help your business grow.

How Does a Loan Against Security Work?

Are you thinking of liquidating your shares and mutual funds to address a cash crunch? Don’t! Instead of selling off your investments hurriedly, take a loan against securities. Let us look at the list of investments you can pledge to avail of this finance option –

  • Shares
  • Bonds
  • Mutual funds
  • Insurance Policies
  • Non-convertible debentures
  • National Savings Certificate (NSC)

Features of LAS Loans

  • An applicant is generally sanctioned up to 85% of the value of pledged securities
  • A loan against security is a secured loan where shares, debentures, mutual funds, etc. are offered as collateral
  • The loan tenure is one year but can be renewed hassle-free
  • The processing fee is generally 2% of the total loan amount
  • You can prepay a loan against security without any penalty or fee

Eligibility Criteria

  • The applicant has to be between the ages of 18 years and 65 years
  • The applicant should be a citizen of India residing permanently in the country
  • The applicant should be able to show a stable source of income
  • The pledged security must be bank-approved.

Documents Required

  • Proof of identity – PAN card, driver’s license, passport, Aadhaar Card (any 1)
  • Proof of address – ration card, utility bills, passport (any 1)
  • Proof of income – If you are a self-employed person, then submit last 6 months bank statements, IT returns for 2 years, balance sheet, profit and loss account, proof of business, and office address. If you are a salaried employee, then submit last 6 months bank statements showing salary credits, last 3 months’ salary slips, and cancelled cheque
  • Demat account statements
  • Passport-size photograph

How to Apply for an LAS Loan?

Online

Applying for a loan against security is very convenient, especially if you do it online and figure out your loan against securities eligibility criteria. After this, fill out a short digital form describing the securities you wish to pledge. Hit ‘Apply’ and get a quick approval once your documents are verified.

Offline

You can also visit the nearest branch of your lending institution if you wish to avail this loan. Make sure you prepare your documents beforehand to save time and reduce the number of trips to the branch. Your loan against security will be sanctioned if an official is satisfied with your paperwork.

The Bottom Line

Loan against securities is a path-breaking new financial product in the market. To apply for this loan, choose India’s leading lending institution – Tata Capital. We offer competitive loans against security interest rates, starting at just 10.5%!

Our loan against security offers the following benefits –

  • Availability of overdraft facility
  • There are no charges for foreclosure or prepayment. This benefit allows you to choose flexible and convenient EMI plans.
  • An applicant can swap securities based on their stock market assessment.
  • The application processing is quick.  
  • The borrower can avail this loan for amounts ranging between Rs.5 lakhs to Rs.20 crores.
  • The loan tenure is of 1 year but is automatically renewable.
  • You can apply for an LAS loan through the website or also via WhatsApp. 

Additional Read:- Top Documents Required for a Loan Against Security

If you wish to know more about it, check out our loan against security product offering or give us a call at 1860 267 6060 today!

Home Loan vs. Home Construction Loan

For every house-buyer, financing is the most important concern. The finance option that you choose depends on what type of property you have your eyes set on. Some of you might want to buy an already-built house whereas others might want to invest in building the house the way they want. Financial institutions offer home loans for both kinds of home purchasing. 

Lenders offer home loans for paying the cost of constructing a house or a building in your existing property. It is a short-term loan offered for the period when the construction work is in progress. Whereas, there are home loans used to purchase a fully-constructed house.

Both these house financing options help you in acquiring your dream house, but there are some differences between the two. Given below are the vital differences between a home loan and a home construction loan.

Additional Read:- Know What is the Right Time for Your Home Extension

Points of Difference Home Loan Home Construction Loan
Tenure Home loans usually have a long loan tenure that can go up to 30 years. If you are opting for a home loan from Tata Capital then you have the flexibility to choose the amount, tenure, and the EMI period. Tata Capital also offers a home loan EMI calculator to help you plan your monthly finances better.   Home construction loans are shorter when compared to home loans, which is why there is always a higher amount of EMI involved.  
Documents To avail a home loan, your KYC documents, income proof, salary slips, bank statements, processing fee cheque, credit report, existing loan details, residential and office address proof, identity proof, age proof, etc are needed. To avail a home construction loan, along with submitting your KYC documents and income proof, you will have to provide your potential lender with all the relevant documents that can establish your ownership of the plot. Your plot’s legal authorisation from the local authority is also needed. You will also have to provide a no-encumbrance certificate of your property. With the documents of your plot, you also have to provide your detailed construction plans and estimated cost of construction authorised by a civil engineer or architect, construction table, etc. 
Disbursement   In a home loan, your whole loan amount is disbursed altogether.   In a home construction loan, the loan amount is not disbursed at once. The amount is broken down into instalments, based on the loan size, loan-to-value ratio, and the progress of construction. You will get the loan amount at designated intervals as development is made in your construction project. Your lender will have pre-determined criteria for disbursing finances, as per the construction advancement. The lender pays close attention to the progress and only when the previous phase is completed, the next phase’s amount will be disbursed.

There is no one way of acquiring your dream house. This is why you should always take into account all the related factors of both home loan options and compare them before choosing. Your decision should be based on calculations after factoring in your income and the after-effects of taking a particular finance option. One thing that you should remember is that no matter which funding option you choose, you should be diligent about paying your home loan EMIs for the whole tenure.

Additional Read:- How can you use home loans for your house extension?

If you have opted for Tata Capital to provide you with a home loan then you can use our home loan EMI calculator available on our website to better plan your monthly budget allocations. Tata Capital provides quick housing loans at attractive home loan interest rates. So, if you have made your choice between the two loan options, you can head to our website and check your home loan eligibility and apply for a home loan with us!