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Flexi EMI Home Loan

Often, young customers of home loan products get into a dilemma concerning their ability to service a home loan. Their concerns are legitimate as they have just started out on their careers and they cannot afford a large EMI to repay the loan. This is where we at Tata Capital come to your help with innovative plans to help you realize your dream of owning a home early in life. We offer you Flexi Home Loans which have an element of variability in the EMIs to be paid during the tenure of the loan.

What is Flexi EMI Home Loan ?

A flexi EMI home loan is a home loan that has flexible EMI options to repay the loan. For instance, if you are young and have started earning and hope to establish your career and earn more as you grow older, we offer you the Flexi EMI Home Loan. This loan allows you to increase your EMI every year to keep pace with your increased earnings. By this way, you could clear off the loan much faster than if you were to maintain a constant EMI set at the beginning of the tenure.

 

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Is Flexi EMI Home Loan advantageous for me ?

A flexi EMI loan is a boon to borrowers who hope to increase their income every year. The benefits include

  • Increase in EMI every year matching with increase in income
  • Lower EMI in the early stages of the loan tenure when income is lower
  • Higher EMI in the later stages of the loan tenure when income is higher
  • Faster repayment of loan as compared to fixed EMI
  • Flexibility to decide on the most flexible EMI plan to suit your cash flow affordability during the tenure of the loan

A flexi EMI loan throws up more viable options for a comfortable repayment of your home loan.

 

Example

 

The following example shows how a flexible EMI option helps you to reduce the tenure as well as the interest paid

 

Terms of the Flexi EMI loan

Loan amount Rs. 10,00,000
Loan tenure 20 years
Mortgage interest rate 10%
Annual instalment incremental rate 5%
Repayment frequency Monthly

In the above example, the following are the results

Repayment Frequency
Installment Amount in Rs
Traditional Constant EMI in Rs
Monthly EMI
Step up EMI in Rs
Monthly EMI
Year 1 monthly EMI 9,650 9,650
Year 2 monthly EMI 9,650 10,133
Year 3 monthly EMI
---and so on
9,650 10,639
Total interest payable 13,14,445 8,04,678
Loan tenure 20 years 12 years

From the above example, you can infer that

  • The loan tenure is reduced to 12 years at step up EMI from 20 years at constant EMI
  • Interest payment is reduced by Rs 5,09,767 over the tenure of the loan if step up EMI is adopted

Thus, opting for a flexi EMI loan you can repay the loan much faster and at lower total home loan interest amount. As you can see from the example you can plan your EMI increase (at 5% in the example) based on your annual increment in salary if you are a salaried person. If you increase EMI every year by say 10%, then you can clear the loan in about 9 years.

Interested in applying for flexi EMI Home Loan ?

We at Tata Capital understand your need for minimizing expenses related to your home loan. We charge you minimal processing fees and charges. Our eligibility conditions are easy to meet. We also ensure our formalities are very simple and easy to conform to so that the process of availing a home loan is as easy as saying 1, 2, and 3.

 

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Processing fees and charges inclusive of statutory levies

The elements of fees and charges depend on the particulars of the loan you opt for and include

  • Non-refundable processing fee
  • Prevailing state government's stamp charges
  • Prepayment charge of 2% on outstanding amount if you exceed the prepayment limits set
  • Foreclosure charges as a percentage of outstanding loan amount depend on terms of your loan
  • Delayed EMI payments attract 2% charge over the prevailing interest amount for each month the EMI is outstanding
  • Miscellaneous charges include PDC, loan cancellation, dishonour of cheques or rejection of ECS, PDC swapping, account maintenance and CERSAI charges
  • Other charges such as legal charges and collection charges on actual

Eligibility and documents

Our home loan eligibility criteria is easy to meet accompanied by standard documents based on whether you are a salaried individual or self-employed professional or self-employed non-professional, and they are

  • Minimum Age Eligibility - Any income earning person above the age of 24 years at the commencement of the loan
  • Maximum Age Eligibility - Any income earning person below the age of 65 or superannuation (in the case of salaried persons) whichever is earlier at the time of maturity of the loan.

The documents required are

  • Salaried Individual - proof of identity, residence, latest salary slip, Form-16 and latest 6-month bank statement
  • Self-employed professional - proof of identity, residence, education, business existence, latest 3-year ITR of individual and profession, latest 3-year P/L statement and balance sheet and latest 6-month bank statement
  • Self-employed non-professional - proof of identity, residence, education, business existence, latest 3-year ITR of individual and profession, latest 3-year P/L statement and balance sheet, latest 6-month bank statement and business profile

How to apply for Home Loan

If you satisfy our age eligibility condition applying for the home loan is quite simple and involves

  • Studying the various features of the home loan
  • Deciding on the loan amount, tenure and EMI repayment
  • Filling the application form with photograph attached
  • Submitting the application form along with processing fee cheque and copies of documents to Tata Capital

Taking a Tata Capital home loan is as easy described above and what is more you can choose your own repayment schedule.

 

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Important Information

Recently there have been cases of fraud being committed under the name of Tata Capital or Tata Finance. Customers are requested to read the attached advisory and be aware of misleading advertisements in the newspapers. Click here to read the advisory and be aware of misleading advertisements in the newspapers.

Click here to read the advisory