Home Loan Prepayment Process & Charges
Tata Capitals provides you with competitive foreclosure and prepayment charges. Tata Capital offers convenient repayment options to its customers. Following are the foreclosure, prepayment charges and repayment options.
- Foreclosure & Prepayment Charges
- Payment Options
No foreclosure charges are applicable:
- Where the term loan is floating interest rate basis and sanctioned to individual borrowers.
- Where the housing loan is on fixed interest rate basis and pre-closed out of the customers own sources.
Where housing loan is on fixed interest rate basis and pre-closed other than own sources, 2% plus taxes will be charged on the principal outstanding and all part payments, if any, made within immediate preceding 12 months of such foreclosure.
No Pre-payment charges on Floating Rate term loans sanctioned to individual borrowers
Fixed Rate term loans:
- No penalty is charged on Partial prepayment up to a maximum of 25% of principal outstanding in a year.
- Part Prepayment of more than 25% of principal outstanding will attract a 2% prepayment charges.
Repaying, the easy way
At Tata Capital, we offer convenient and flexible home loan repayment options that allow you enough freedom to choose when and how to repay your loan.
Up to 30 years for salaried applicants and 20 years for others, subject to age at the maturity of loan; not exceeding 65 years or retirement, whichever is earlier.
Options of MI payment:
- Auto Debit /ECS Facility:
Under this facility , the customer undertakes to issue an irrevocable instruction to its bankers to periodically debit the bank account of the customer with an amount equal to MI/Pre-MI and transfer the same to the bank account of TCHFL. TCHFL has Auto Debit arrangements with 27 banks and there are no location constraints under this facility. However, ECS facility is available in limited cities only.
- PDC Facility:
Considering the prolonged tenure of the loan being offered, this facility is accepted only if Auto Debit or ECS is not possible. Under this facility, the customer will have to provide 36 PDC's (Post dated cheques) upfront and periodically issue fresh PDCs at least 3 months prior to expiry of the current PDCs or as and when called upon by the company.
- Deduction Against Salary (DAS):
At the discretion of TCHFL and if the employer of the customer agrees in writing, the customer may also make the payment of the MI directly from his salary by instructing and authorizing his employer to deduct the payment from his salary and making payment thereof directly to TCHFL.
Pre Monthly Installment (MI) interest payment:
Pre MI interest is payable in cases of part disbursement only on the disbursed portion of the sanctioned loan every month up to the final disbursement of the loan.
Pre MI interest payments can be made by ECS, Auto Debit Facility, PDC's or DAS as explained above. PDC's are accepted only if Auto Debit or ECS is not possible.
Alternately the customer can also opt for servicing full MIs depending upon the financial leverage of the customer.
Looking for a Home Loan? Calculate your EMI in 3 Easy Steps Using our Home Loan EMI Calculator.
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.
Home Loan Guide
At Tata Capital, we believe a home is so much more than four walls and a roof. It is your refuge from the world. It is a place where you can let go and truly be yourself. and it is our endeavour to bring you closer to owning your dream home, the place where you can truly express yourself.
However, we also realize that for most people , buying their dream home can be a long and complicated process. This is why it is our aim to simplify this process and give you all the information you require to make your home-buying process completely hassle-free. The home loan guide contains important points you should keep in mind while deciding to purchase a house, so that your home purchase is a landmark you can look back upon with satisfaction and pride.