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Business Loan with Hybrid Term Loan benefits
Rates and Charges

Business Loan Hybrid Term Loan Rates & Charges

Rates & Charges

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Overview Required Documents Rates & Charges EMI Options

What is the Interest Rate on an Hybrid Term Loan?

At Tata Capital, we provide Hybrid Term Loan for self-employed professionals - such as doctors, lawyers, chartered accountants, etc. - at lower interest rates as compared to self-employed non-professionals. Our loan charges may also differ based on the customer’s profile.

When you avail of an Hybrid Term Loan, Customers need to pay Interest only on the amount utilized. It is calculated on daily basis and is billed to the customer at month-end.

This rate is usually expressed as an annual percentage and is charged on your outstanding loan amount. Interest rates in India vary from one lending institution to another.

At Tata Capital, we provide Hybrid Term Loan at the most competitive interest rates. Our interest rate starts from 12% p.a. Moreover, depending on your loan eligibility, income, business turnover, credit score, and other parameters, we can determine the best interest rate for you.

Additionally, when you apply for a Tata Capital business loan, you do not have to worry about any hidden charges. Be it our processing fees, foreclosure charges, or EMI bounce charges, we transparently convey all our charges and rates at the time of loan processing.

How to Calculate Interest on Business Loans?

The interest that you need to pay on your Hybrid Term Loan depends upon several factors, including your loan amount, loan tenure, and the interest rate charged by your lender. This rate is expressed as an annual percentage and is charged on the outstanding principal amount of your Hybrid Term Loan.

To calculate the interest on your business loan, lenders multiply your outstanding amount at the end of each day with the applicable interest rate. If this calculation seems complex to you, you can simply use a business loan EMI calculator to determine the interest amount and the EMI that you need to pay for your business loan.

You can also use the following formula to evaluate your business loan EMI:

EMI = [ P x r x ( 1 + r ) ^ n ] / [( 1 + r ) ^ n - 1 ]

Here, ‘P’ is the Principal Loan Amount, ‘r’ is the rate of interest, and ‘n’ is the loan tenure in months.

What are the Business Loan Interest Rates in India for Self-Employed?

The business loan interest rates in India for self-employed individuals may vary from one lending institution to another. The interest rates for business loans may also depend on the nature of the business and the qualifications of the borrower.

Business Loan Hybrid Term Loan Interest Rates

Interest rates at Tata Capital start from as low as 12% p.a.

The processing fee for Hybrid Term Loan is Up to 3% of the loan amount.

What are the other charges in Hybrid Term Loan?

Apart from the interest rate and processing fee, lenders can levy several types of charges to cover unforeseen expenses during the loan tenure. These charges may include cheque bounce charges, mandate rejection fees,Hybrid Term Loan annual maintenance fees, document processing fees, outstation collection fees, and foreclosure charges, among others.

Penal Charges

Penal Charges, if any, in case of delayed payments

This is a charge for late EMI payments, calculated based on the number of days your EMI remains unpaid.

At Tata Capital, For default in payment of interest and/ or principal amounts 3% per month on defaulted amount (Annualized Penal Charge of 36%)

Dishonour of any cheque/
payment instruments

These are those charges that are levied in case of an EMI bounce per instance. In other words, these charges are levied when you miss a Business loan EMI payment due to inadequate funds in your bank account. At Tata Capital, you’ll be required to pay Rs. 600 per instrument per instance

Mandate Rejection Service Charge

Charges will be levied if EMI is due but valid instrument is not available for banking due to Mandate rejected by Borrower’s bank or EMI Post-dated cheques(wherever applicable) are not available. Tata Capital charges a nominal amount of Rs. 450

Other Charges

The table below depicts the miscellaneous business loan charges of Tata Capital:

Processing Fees

The processing fee is a non-refundable fee levied by Tata Capital while processing your loan application. You are charged this one-time fee even if the loan does not get sanctioned.

At Tata Capital, you are charged Up to 3% of the loan amount.

Documentation Charges

This fee covers the cost of verifying your documents, completing necessary compliance checks, and conducting due diligence before your loan is disbursed.

At Tata Capital, you are charged Rs. 1999.

Annual Maintenance Charges- Hybrid Term Loan

This is an annual charge for maintaining your account if you have opted for a flexible funding option such as a Hybrid Term Loan.

At Tata Capital, you are charged:

First Year: 1% on dropline amount or Rs. 1,000 whichever is higher will be levied and shall be payable in the month immediately following a 12-month period (i.e., 13^th month)

Second Year: 0.75% on dropline amount or Rs. 1,000 whichever is higher will be levied and shall be payable in the month immediately following a 24-month period (i.e., 25^th month)

Subsequent Years: 0.5% on dropline amount or Rs. 1,000 whichever is higher; the said charges will be levied in the month immediately following a 36-month period (e.g., 37^th, 49^th month, etc. till the end of the loan tenure) and the same will be collected along with the EPI for the respective month.

Statement of Accounts Charges

This is a charge applied for providing a physical copy of the Statement of Account – a statement having a list of all transactions made in your loan account during a given period.

At Tata Capital, you will be charged
Customer portal – Nil
Branch walk-in - Rs. 250

Stamp Duty

This is a government-mandated fee required for legally registering your loan agreement.

At Actuals

Foreclosure Charges in Hybrid Term Loan

This is a charge applied if you choose to repay your entire loan before the end of the contracted loan term.

4.5% of the dropped down amount at the time of foreclosure.

Foreclosure Charges for Top-up facility are Not Applicable.

Part- Prepayment Charges on Hybrid Term Loan

This is a charge applied if you choose to repay part of your loan before the end of your loan tenure.

4.5% of the part prepayment amount . Applicable only if the facilty amount is reduced.

Loan Cancellation Charges

This is a charge applied if you request loan cancellation after the cooling-off period.

At Tata Capital, you will be charged,
2% of the loan amount/ facility amount

OR

Rs. 5750/- (whichever is higher)

Switch Fee without any Top Up

This is a charge applied if you request a change or reduction in the interest rate on your existing Loan.

At Tata Capital, you will be charged
Up to 0.1% of Principal Outstanding

OR

Rs.1000 whichever is greater

Note:

The amounts are net of taxes such as GST, etc.
GST, other Government taxes and levies as applicable, will be payable on all fees and charges in above mentioned

Why Choose Tata Capital?

With a Tata Capital business loan, you can get adequate business finance at competitive interest rates. You can use our business loan to meet your working capital requirements, expand your business, upgrade business equipment, and tap into new opportunities. Our business loans are flexible to complement your various business-related financial requirements.

Besides attractive interest rates starting from 12% per annum, we offer fixed and structured EMI plans to make your repayment experience convenient. You can avail of financing as per your precise business requirements and enjoy extended loan tenures of up to 60 months.

Moreover, we won’t ask you to put your business assets on the line to secure funds for your business. With us, you can forget about standing in long queues and lengthy paperwork. We allow you to apply for an online business loan from the convenience of your home or office and get faster approval.

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