Guide To Understanding Personal Loans - Personal Loan - Tata Capital

Personal LOAN

Guide to financing your higher education

Mar 23, 2018

Don't let the high costs of higher education deter you from reaching for the stars and beyond. Here’s a look at how you could do it.

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Using a Travel Loan for your Holiday

Mar 16, 2018

A travel loan is nothing but a personal loan used for the purpose of that dream holiday you've been waiting to go on. There are plenty of advantages to using a travel loan for your next holiday. When using a loan for travel, you can plan your itinerary and get funds for your holiday in case your travel plan exceeds the budget you had in mind. Keep in mind that a travel loan turns out to be cost efficient as compared to using a credit card. Funding your holiday with your credit card can be a bad idea if you do not have the capacity to repay within the interest-free period.

Travel loans, on the other hand, are processed fast and you do not have to wait too long to get the money in your bank account to start booking your holiday. In addition, travel loans offer flexible repayment schedules to make your holiday a time of leisure without worry looming over your head. Let's see how Rohit and Alia took that US vacation that they have been thinking of.

Alia's parents have been dreaming of visiting the US their whole lives. Their working lives were dedicated to supporting their children and granting them all their wishes. Alia wants to turn the tables and grant her parents their wish for a change -- their dream holiday. Although Alia and Rohit are both working, they do not have enough funds to take the entire family of five on holiday this year. Their concern with putting off the holiday until they have saved up enough is that it might never happen, given the way expenses have a way of creeping up on you. Next year, Karan, their son, starts school and expenses will shoot up. This is how Rohit and Alia stumbled upon travel loans when researching on how to make their dream vacation come true. Taking a loan for travel seemed the perfect solution for them.

The couple started planning their US trip. They found out the cost of tickets for their parents, themselves and their child, the cost of accommodation for two weeks, the average cost of living per day and other expenses which would be required for sightseeing, tours and unforgettable experiences. They calculated how much their whole holiday would come up to and then started approaching banks and NBFCs to inquire on travel loans. As they kept approaching more institutions they realized the importance of a travel loan. Rohit and Alia had saved up to be able to pay for half of their travel plans and needed funds for the rest.

Rohit and Alia finally choose to avail a travel loan from Tata Capital. This helped them plan the trip better in a more organized manner as they had to find out all details in order to zero down on the appropriate loan amount. The rest of the process didn't take a long time as most financial institutions take about 72 hours to disburse the loan amount.

Considering that they had a good credit score and the capability to repay easily. This led them to avail a lower interest rate as well. Had they booked the flight tickets on their credit card, which was their initial plan, they would end up paying 7-8 times the amount in EMIs. Now they could holiday stress-free without calculating each time they had to pull out their wallet.

Tata Capital Travel loan appealed to the couple the most due to its unique offer of an interest-free travel loan. They could get a loan amount of 15 lakhs with zero percent interest if they paid the same within 8 EMIs. Most important of all, Alia's parents would have their dream come true and the memories would last them a lifetime. For such precious memories, there never is a price tag too high.

Don't let the opportunity to make wonderful memories slip you by just for a simple thing of lack of funds right now. We at, Tata Capital, only do what is right for you. Connect with us to know more.

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Funding options to grow your business

Mar 16, 2018

Rita and her friend Shilpa started a salon business in their neighbourhood. After a few months, they needed a lender to give them an assurance of a loan. Rita did not need a business loan right away but wanted an arrangement where she could tap into whenever there was a need to for her flourishing business. Simply put, she needed a line of credit. Lack of awareness about different commercial loans can lead you to take a quick business loan that doesn't fit your needs. Let us understand the different small business financing options that are available to grow your business.

Most common types of business loans

Every business is different. That is why business funding needs are different too. This is how lenders, like Tata Capital, offer various commercial loans. This ensures that small businesses can choose and take the right loan product. The most common type of business loans includes term loans, short-term loans, business lines of credit, equipment financing, invoice financing, cash advances and business credit cards. Let us understand them one by one.

Term loans - A term loan is a lump sum loan that a business owner can pay back, plus interest, over a set term. While they are given for tenure as low as 1 year, term loans can also extend up to 30 years. Term loans are generally secured in nature, which means there will be a collateral serving as security for the loan.

Short-term loans - In this type of commercial loan, the loan has to be paid back with interest over a shorter term, say 3 months to 18 months in most cases. Since the money has to be repaid over a shorter tenure, the loan size is not as big as a 'term loan'.

Machinery or equipment loan - A machinery loan allows you to purchase machinery and equipment, new as well as old, essential for smooth operations of a business. This is suitable for micro, small and medium scale manufacturing units. You can avail a maximum funding of 100% of the equipment you want to buy. Loan tenure can vary from 3 months to 60 months.

Working capital loan - This is debt that is availed to fund the working or daily operations of a business. The purpose of using the loan could be to pay regular bills, handle cash flow needs, give employee salaries, and other recurring costs. Working capital loans are best suited for businesses with a high degree of cyclicality.

Line of credit - You may not need a loan immediately but require an assurance that a loan is available when you actually need it. A line of credit gives thus helps in an efficient use of the loan. Line of credits can be given for up to 60 months. Line of credits come in very handy when you can understand there is a need for a loan in the future, but also want to be prepared for taking the loan.

Invoice financing - Many small and medium businesses get payment from clients after quite a lag. This happens especially with exporters and if the clients are geographically distant. This is where invoice financing helps you to realize up to 80 percent value of the legal invoices. The loan rates are very competitive and require no other collaterals. The tenure of invoice financing loans can be between 30 to 90 days.

Before considering taking any quick business loan, the ideal business owner should definitely understand their requirements. Instead of hurriedly taking any business funding, try to talk to reputed lenders like Tata Capital so that you can get the best small business financing opportunity. Discuss your needs clearly and get the perfect commercial loan solution to grow your business.

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