Business Loan Overdraft Rates & Charges

Rates & Charges

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Overview Required Documents Rates & Charges EMI Options

What is the Interest Rate on an Overdraft facility?

At Tata Capital, we provide overdraft facility 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 OD facility, 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 overdraft facility at the most competitive interest rates. Our interest rate for professionals starts from 13.25% per annum and for non-professionals it starts from 16% per annum. 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 overdraft facility 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 OD facility.

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 Overdraft Interest Rates Table

The table below depicts our loan interest rates for self-employed individuals:

Customer Profile	Rate of Interest
Self-Employed Non-Professional	16 % - 26 %
Self-Employed Professionals and Self-Employed Doctors	13.25 % - 17.5 %

The processing fee for overdraft loan is upto 4%

What are the other charges in OD facility?

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, CCOD 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

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 personal loan EMI payment due to inadequate funds in your bank account. At Tata Capital, you’ll be required to pay Rs. 600 for every Cheque/Payment Instrument Dishonour.

Mandate Rejection Service Charge

Charges will be levied if new mandate form is not registered within 30 days from the date of rejection of previous mandate form by Borrower’s bank for any reason whatsoever. Tata Capital charges a nominal amount of Rs. 450.

Other Charges

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

Part-Prepayment/ Prepayment/ Foreclosure Charges

Foreclosure charges on Term Loan Facility:

No Foreclosure and Part Payment is allowed in First 9 months from the date of disbursement. 6.5% charges if foreclosed/ part-prepaid within 9 months from the date of disbursement
4.5% on the principal outstanding at the time of foreclosure

Part-Prepayment/ Prepayment/ Foreclosure charges on Top-up:

2.25% on the principal outstanding at the time of foreclosure
Foreclosure charges shall be levied only if new rate is lower than existing rate.

Part-Prepayment/ Prepayment/ Foreclosure Charges in Dropline Facility:

4.5% on the Dropped down limit amount
No foreclosure and Part- Payment is allowed in first 9 months. 6.5%charges if foreclosed/ part-prepaid within 9 months

Processing Charges

As Applicable

Payment Instrument swapping

Rs. 550/-

Annual Maintenance Charges (Dropline facility)

First Year: 0.75% or 1000 whichever is higher per year will be deducted from the limit and shall be payable at the end of the 13th month

Subsequent Years: 0.50% or 1000 whichever is higher per year will be deducted from the limit and shall be payable at the end of the 13th month

Document processing charges

Rs. 1999/-

Cancellation charges

2% of the Facility amount OR
Rs. 5750/- Whichever is higher

Duplicate Repayment Schedule

Rs. 550/-

Duplicate NOC

Rs. 550/-

Statement of Account (SOA)

Customer portal – Nil
Branch walk in – Rs. 250 /-

Foreclosure Letter Charge

Customer portal – Nil
Branch walk in - Rs 199/-

Post Dated Cheque Charges Rs

Charges Rs 850

section 138 and section 25 filing

At Actual

Arbitration Filing

At Actual

Receiver Order

At Actual

Notice

At Actual

Legal Notice

At Actual

Lawyer fees

At Actual

Execution of award

At Actual

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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If you’re unsure of the total loan amount that you may need for your business, you can avail of a business loan overdraft facility or an overdraft business loan.

With Tata Capital, you can get an OD loan for business of up to Rs. 90 lakhs at an affordable interest rate.

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