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Home Loans Overdraft Facility by Tata Capital

At times, you may need additional funds to tackle your personal or business expenses. However, if you have already taken a home loan, the chances of getting another loan become slim, and it isn’t advisable as well. Repaying a home loan in itself can be a long-term and challenging commitment. What you can do in such a situation is avail of a home loan overdraft facility.

The home loan overdraft facility, also known as a home loan OD facility, is a unique facility offered by home loan lenders to their customers. Under the overdraft facility on home loan, they allow their customers to deposit or withdraw funds from a pre-determined home loan OD limit. The borrowers can then repay the withdrawn amount along with the accrued interest by depositing it into the home loan overdraft account.

  • Loan amount offered

    ₹ 5 lakhs to ₹ 2 crores

  • Loan tenure

    Upto 15 years

  • Interest rate starting @

    8.75%* p.a.

Advantages of Tata Capital Home Loan Overdraft Facility

A High Home Loan OD Limit

You can avail of a high home overdraft loan limit of up to Rs. 2 crores. You can withdraw from your overdraft housing loan limit anytime you want and meet all your personal or business financial requirements with ease. 

Higher Home Loan OD Tenure

You have the flexibility to choose your home loan overdraft tenure as per your repayment capabilities. The tenure of your overdraft on home loan can go as high as 15 years so that you can repay the borrowed amount without putting any additional stress on your budget.  

Reduce Overall Costs

You can also use your overdraft facility on home loan to reduce your borrowing costs. You can make monthly payments in your home loan overdraft account, and your home loan principal amount and interest costs will reduce accordingly. 

Interest Applicable Only on Utilized Amount

One of the biggest benefits of availing of a home loan overdraft facility is that the interest is applicable only on the amount you utilize and not on the entire loan limit. An overdraft on home loan allows you to withdraw only when you need money without levying any additional interest.

No Prepayment Charges

We won’t take any prepayment charges if you wish to make full or part prepayments on your home loan with OD facility. You can make the prepayments as many times as you wish without incurring any additional charges.

Attractive Interest Rates

We understand that high interest rates can become a hurdle in borrowing and funding your financial requirements. And hence, we offer home loan overdraft facility at interest rates that do not burn a hole in your pocket.

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Eligibility Criteria for a Home Loan Overdraft Facility

You can avail of our overdraft facility on home loan and enjoy a high OD limit for your emergency financial requirements. However, for that, you’re required to meet our home loan overdraft eligibility criteria, which include:

  • Your age should be between 24 years to 65 years

  • You must be a salaried professional or self-employed individual

  • You should have taken a home loan from us against a housing property

  • Your credit score should be 750 or more

Why Should You Avail of a Home Loan Overdraft Facility?

 

As an existing home loan customer with Tata Capital, you can avail of our home loan overdraft facility to meet your various financial requirements. Here’s how you can benefit from the OD facility on home loan:

  • No Additional Collateral Required

    You are not required to submit any additional collateral to avail of an overdraft facility on home loan. It means that you can get access to a home overdraft loan without putting your personal or professional assets on the line.

  • Buy Anything You Want

    With Tata Capital’s home loan overdraft facility, you can get access to finances of up to Rs. 2 crores. You can use this amount to make big-ticket purchases, such as furniture for your house, electronic appliances, etc.

  • Build the House of Your Dreams

    You can withdraw finances from the overdraft housing loan limit and use them to reconstruct, remodel, or renovate your existing house as per your requirements. For example, you can add new spaces to your house or revamp the interiors to improve the appearance of your house.

  • Meet Your Working Capital Requirements

    If you’re a business owner, you may need working capital for your business from time to time. An overdraft facility on home loan can help you withdraw funds to meet the growing financial requirements of your business. The home loan overdraft interest rates are affordable, which can be an additional advantage.

How does a home loan overdraft facility work?

You might be wondering how does an overdraft facility work. As you already know, the OD facility allows you to get a loan for your emergency requirements. However, the repayment isn’t made in the form of Equated Monthly Installments or EMIs, as is the case with other types of loans. Instead, you can repay the withdrawn amount by depositing it back into your OD account in single or multiple installments. 

It works in the same manner as it does on a savings or current account. Just in the case of a home loan OD facility, your home loan account is linked to a dedicated OD account. You can withdraw funds from this account as and when needed through a debit card or direct transfer. This is typically done to tackle unforeseen expenses, such as medical bills, house repairs, working capital, etc. You can also use your home loan OD account to withdraw funds for planned events such as a wedding or a vacation.

When you withdraw funds from your home loan OD account, it is added to your home loan outstanding balance. Consequently, it starts attracting interest at the same rate that you are paying on your home loan. And then, when you deposit the money back into your OD account, it is treated as a home loan prepayment and gets subtracted from your outstanding balance. Hence, the interest on the withdrawn amount is charged only for the duration for which it was used. The example below will help you understand this in a better way.

Suppose you have taken a home loan of a certain amount from a lender offering a home loan overdraft facility. The interest rate levied on your home loan amount is 9% per annum, and your current home loan outstanding balance is Rs. 23 lakh. Now, you withdraw Rs. 3 lakh from your home loan OD account during an emergency. This amount would be added to your home loan outstanding balance, which means that it will become Rs. 26 lakh, and this entire amount will attract interest at the same rate, i.e., 9% per annum, until you deposit the withdrawn amount back into your OD account.

Note that the maximum amount that you can withdraw from your home loan OD account will depend on your OD limit. For instance, if your OD limit is Rs. 15 lakh, you can withdraw a maximum of Rs. 15 lakh from your home loan OD account in single or multiple installments.

How to apply for a Home Loan Overdraft Facility?

How to Apply for a Home Loan Overdraft Facility?

Applying for a home loan OD facility with Tata Capital is easy and convenient. If you’ve already taken a home loan with us, you can apply for an overdraft on home loan in the following ways:

  • Branch

    You can also visit your nearest Tata Capital branch to apply for an overdraft facility on home loan. Our executives there will guide you through the entire application process.

How to Apply for a Home Loan Overdraft Facility?

Applying for a home loan OD facility with Tata Capital is easy and convenient. If you’ve already taken a home loan with us, you can apply for an overdraft on home loan in the following ways:

  • Online

    You can simply visit our website and apply for a home loan overdraft facility online. You will need to enter your home loan details and upload the required documents.

  • Phone

    You can dial our customer care number 1860 267 6060 to apply for a home loan overdraft facility through your mobile phone.
  • Virtual Assistant

    You can also take the help of our virtual assistant to apply and learn about our overdraft facility on home loans.

What is a home loan overdraft facility?

Suppose you have taken a home loan to purchase a house in which you are living happily with your loved ones. You’ve used your life savings to make the down payment for your house and are happy to pay a major chunk of your income as home loan EMIs. Then, suddenly there is a medical emergency at your house, and you need significant finances to deal with it. What will you do in such a situation? You neither have your savings to fall upon nor do you want the risk of taking a new loan.

This is where a home loan overdraft facility comes to the rescue. It allows you to withdraw extra funds from a pre-determined loan limit on your home loan account in the case of a financial emergency. When you borrow a home loan from a lender offering a home loan overdraft facility, you get a separate OD account attached to your home loan account. You can withdraw funds from this home loan OD account as and when you need. The withdrawn amount can be repaid at any time, along with the accrued interest, by depositing it back into your OD account.

The primary purpose of a home loan overdraft facility is to provide you with a flexible source of funds that can be used to meet diverse financial requirements. It can be an ideal solution to acquire funds for personal emergency expenses, such as paying hospital bills, undertaking home repairs, purchasing new appliances, etc. You can also withdraw funds from your home loan OD account to meet your business requirements. For example, when you face a shortage of working capital or need money to buy more inventory or equipment, you can take the help of the home loan OD facility to get access to finances.

More Home Loan products for you

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With Tata Capital, you can apply for a home loan for government employees in a few easy steps and get housing finance at competitive interest rates.

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With Tata Capital, you can apply for a home loan for self employed in a few easy steps and get housing finance at competitive interest rates.

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With Tata Capital, you can apply for a home loan for women in a few easy steps and get housing finance at competitive interest rates. 

What our customers say about us

Service provided by Manoj Patel in Surat vesu Branch was helpful and because of his support we were able to close loan.

Prakash Patil

Home Loan | 23 Aug, 2024

Excellent A1 Services. The Lady at the Customer Desk is very Cooperative and helpful so that my work completed without the time frame. The name of the Lady is Amruta Pathak. God bless her and her family. Thanks and Regards for the entire team of Tata Capital.

Nandlal Lal Arora

Home Loan | 13 Aug, 2024

Very good & prompt service, and we have spoken to Mr. Manish also, and he always helps us to provide our request. Thank you, Ms Apurva Shende & Manish Padwal

Farhang Ahmed Azar

Home Loan | 24 Jul, 2024

I'm happy with the service and the help I got earlier for foreclosure letter. Thank you so much & thanks to Alisha mam for her guidance.

Akshay Anil Pawar

Home Loan | 17 Jul, 2024

Special thanks to Mr. Avinash for his help rendered with full commitment to his job, answering the queries to me clearly, and follow up so that the work is done in given time to get customer satisfaction.

Hannah Grace

Home Loan | 02 Jul, 2024

Mr Avinash who handled my case is well experienced and has courtesy for customers' concerns. However, some of the Tata Capital products are very expensive when compared to other banks' ones!

Mohammed Shakeel Urrahman

Home Loan | 28 Jun, 2024

Start to end of my loan process was simple and guidance of your team members were to the point. My last communication was with Mr. MANOJ PATEL from surat branch he was very polite and helpful.

Anamika Vijaykumar Tiwari

Home Loan | 20 Jun, 2024

We extend our heartfelt gratitude to Mr. Pravin Sagare, Senior Officer of Customer Service, for his exceptional service. His remarkable demeanor and professionalism during telephonic interactions with customers have been truly outstanding. Over the past two years, we have utilized various services, yet none have matched the quality provided by Mr. Sagare. We are deeply impressed by the exemplary service, due to this reaons we has influenced our decision to obtain a second home loan from TATA Capital Housing Finance Limited.

Avinash Vasantbhai Bhesaniya

Home Loan | 07 Jun, 2024

I had applied for a home loan at Tata Capital & got the it approved quickly. The process was smooth and sanctioned with sufficient amount with tenure period of 20 yrs.

Sumeet Verma

Home Loan | 14 Mar, 2022

Find the right Loan for you

Affordable Housing Loan

  1. At Tata Capital, we believe that every single person, regardless of their financial background, deserves a home to call their own.

With this vision, Tata Capital Housing Finance offers affordable home loans at competitive interest rates. 

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  1. As the years go by and your family continues to grow, does your house feel smaller?

Tata Capital’s Home Extension Loan is a perfect solution to help you give your family that additional space they deserve.

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Instead of buying a ready-to-move-in house, you can choose to purchase a piece of land and construct your house on it brick by brick. 

A home loan for self-construction or simply a home construction loan is a special type of home loan given to help borrowers construct their own house on a piece of land or plot.

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Home Loan Top-up

A home loan top-up is a facility offered by lenders under which a borrower can take an additional loan over and above their existing home loan.

The home loan top-up facility is available only for existing home loan borrowers without the need for any additional security or guarantee.

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Home Loan Overdraft

At times, you may need additional funds to tackle your personal or business expenses. 

With Tata Capital’s home loan overdraft facility, you can avail of a home overdraft loan limit of up to Rs. 2 crores. You can withdraw funds from this overdraft housing loan limit as per your needs and then pay it back at your convenience.

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Quick Cash

Quick Cash loan is a unique Pre-Approved personal finance top-up linked to your existing Tata Capital Housing Finance Limited (TCHFL) loans. This loan is only for existing TCHFL Home Loan and Home Equity customers.

Apart from its unique features, it also offers other advantages such as faster processing, and a paperless journey, notwithstanding that all this could be availed in just a few clicks at your convenience any day 24*7.

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Balance Transfer

  1. A home loan balance transfer, or simply a home loan transfer, takes place when you transfer your outstanding home loan amount to a new lender from your existing lender.

With Tata Capital Home Loan Balance Transfer, you can transfer your outstanding home loan balance to affordable interest rates. Our home loan interest rates start from just 8.75% per annum*.

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