Tata Capital is a well – known and trusted name in the financial services across the country. The company on March 24th, 2015 came up with a historic announcement of the launching of flexible EMI option under various loan products. Flexible EMI loans provide customers the unique choice to design their EMI structure as per their convenience. This structured loan is available for Tata Capital home loan, car loan, business loan, and personal loan.Needless to say, this customized repayment option can address the individual requirements of the customers at a given point of time. Tata Capital was the first NFBC in the market to offer such unique plans to benefit the loan borrowers across segments.
This type of loan is beneficial for those who are uncertain about the security of their income throughout the loan tenure. For example, if you are in the mid of your career and planning to buy a house, but you are worried about taking a home loan. As a housing loan at this point in your life and career can make saving after retirement a difficult and almost an impossible task. And, that’s where a flexible home loan comes into the picture.
Under Tata Capital Flexible EMI Loans, four types of options are available. Let us have a look on all four of them –
Step- Up EMI Option
Normally, the annual income of a salaried person, especially in the private sector increases every year with annual appraisals. Step- up EMI plan allows you to pay larger amounts gradually in an accelerating pattern. This type of plan is highly beneficial for the big ticket loans like housing loans. The greatest advantage of the step up EMI option is that it enables to get an affordable EMI structure in the settling years of the loan. Youngsters, who have just started their career prefer to opt for Step- up EMI plan as they are pretty sure of the increase in their income, as time progresses. Here, you are also eligible to get larger loan amount sanctioned under this scheme.
Step- Down EMI Option
This customized loan option is for those who anticipate a decrease in their incomes in the later years. Borrowers who are nearing their retirement, normally prefer step down type of EMI structure. Here, the borrower is required to pay larger amounts in the initial years and decrease gradually in the later years of the loan tenure. This is an excellent option for children who wish to combine their parents’ contribution in the EMI. Step- down loan option helps the borrower repay faster and save on financial costs.
Bullet EMI Option
In this plan, the borrower has an option to repay the loan amount in parts and at periodic intervals. The periodic repayments help in lowering the installments significantly. Another good thing is, there is no penalty for prepayment.
Balloon EMI Option
This type of repayment plan is very similar to the step up EMI option. The only difference here being is that the borrower is expected to pay one- third of the loan amount during the last installments. The Balloon payment is a large, lump sum repayment, paid either at intervals or more commonly at the end of the loan tenure.
Tata Capital home loan is a comprehensive housing loan scheme, in which a salaried person is eligible to get a home loan for a tenure that can range from 1 to 30 years. On the other hand, other borrowers are entitled to take a home loan of a duration ranging from 1 to 20 years.