Tata Capital Business Loans

Why is Tata Capital so hated? At such high interest rates, should you take a business loan from them? Read on.

Established in 2007, Tata Capital Limited is a non-banking financial company (NBFC) and a subsidiary of Tata Sons Limited. It is based in Mumbai and has over 200 branches across India. The company offers consumer loans, commercial finance, wealth management, infrastructure finance and more. Tata Capital aims at providing customers with transparent and focussed financial solutions that can enable them to achieve their dreams.         

Tata Capital Features

Key features of Tata Capital’s business loan include:

  1. Get business loans from ₹5 lakhs to ₹50 lakhs
  2. You don’t need any collateral or guarantor to get loan approval
  3. Loans are offered for a period of 12 to 48 months.
  4. The documentation process is simple and the loan is disbursed quickly
  5. Interest rate starts at 19%
  6. Tata Capital provides flexible repayment options. You can opt for the fixed and structured EMI plans, depending upon your income.
  7. Processing fee for loans can vary from 1.5% to 2.50%.
  8. Lowest EMI instalment is ₹2,938 per lakh.
  9. Early foreclosure is allowed after payment of 6 EMI instalments, but you’ll have to pay 4.5% of the outstanding balance in foreclosure charges.

Limitations

  1. Part pre-payment is not allowed
  2. Several customers have given negative reviews regarding the customer services, rates and charges, and staff attitude.
  3. Some other banks and NBFCs offer business loans at a lower interest rates, such as SBI (11.20% to 16.30%), ICICI (12.90% to 16.65%) and Fullerton India (16% onwards).   

Advantages

  1. Simple documentation process and quick disbursement of loan amount
  2. Flexible EMI repayment options

Disadvantages

  1. No option for part pre-payment
  2. Interest rate is among the highest

Do you have any feedback to share about Tata Capital business loans? Please share with us in comments.

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