Review Of Tata Capital Home Loan And Interest Rate For 2012

Tata Capital is the financial arm of Tata Group. They disburse home loans up to 85% with an average of 55 to 60% of the property value mostly in tier-II and tier-III cities in India for a tenor varying 1 year to 20 years. The minimum and maximum loan amount available under their schemes are Rs 2 lakh and Rs 10 crore respectively for residential property mostly intended to the middle income group of the society.

Tata Capital Housing Finance Limited or TCHFL is a 100% subsidiary company of Tata Capital Limited engaged in finance business such as auto loans, property loan, personal loans, loan against property, etc with options to customize your loan as per your requirement.

Tata Capital Housing Finance Limited offers home loans for any of the following purposes:

  • Self constructed houses.
  • Purchase of plots for self constructed houses.
  • Extension on existing home.
  • Arrangement of refinance for acquisition of residential property.
  • Home loan on enhancement and take- over.
  • Builder purchase for ready and under construction property.
  • Resale property.

The key features of TCHFL home loans are:

  • Fast processing service.
  • Processing fees are 0.50% plus service tax. Out of the total amount of processing fees Rs 5000 plus service tax (non refundable) is payable during submission of loan application form and the balance payable at the time of loan sanctioning. Once the loan is disbursed, balance processing fees paid are not refundable.
  • Stamp charges may differ as per State rules.
  • Cancellation charges are Rs 1,000.
  • Cheque dishonor/ rejection of ECS are subject to charges of Rs 5,000 in each case.
  • No penalty is charged on partial pre-payment up to 25% of the yearly principal amount outstanding. When such pre-payment exceeds 25%, penalty will be charged.
  • No Foreclosure charge is levied when the rent is calculated on floating rate or when the interest was payable under fixed rate of interest but the customer has pre-closed the loan out of own source.
  • However, when the loan was payable on fixed interest rate and the customer has pre-closed the agreement other than own source, 2% with taxes will be charged on the outstanding principal on all part payments made in last 12 months.
  • Charges for delayed or overdue payments will be levied at the rate of 0.50% per month in addition to the prevailing interest rate.

Tata Capital Home Loan Interest Rate For 2012

Applicable Monthly Rates

With effect from March 1, 2012

Fixed Rate of Interest Variable Rate of Interest
Salaried Self Employed Salaried Self Employed
Upto Rs.30,00,000 Lacs 11% 11% 10.75% 10.75%
Rs.30,00,001 Lacs to Rs.50,00,000 11% 11% 10.75% 11.00%
Rs.50,00,001 Lacs to Rs.75,00,000 11% 11.25% 11.00% 11.25%
Over Rs.75,00,001 11.25% 11.25% 11.15% 11.25%

Loan against property

Loan Amounts

With effect from March 3, 2012

Applicable Rates of interest for Self Employed & Salaried People
Commercial Property Residential property
Fixed for 2 yrs Floating years Fixed for 2 yrs Floating years
Up to Rs 1 Crore 13.75% 13.50% 13.25% 13.00%
Rs 1 Crore to Rs 3 Crore 14.00% 13.75% 13.50% 13.25%
Rs 3 Crore to Rs 5 Crore 14.00% 13.75% 13.75% 13.50%
Above Rs 5 Crore 14.25% 14.00% 14.00% 13.75%

However, for self employed persons actual interest rate will depend on certain parameters like methods of income assessment, credit worthiness, policy of the company, etc.

Rates are subject to change without prior notice.

Any borrower can switch own home loan rate on the following terms:

(a)  Switch from Applicable rate of Interest to Current Fixed Rates for 3 years: This is permitted for a minimum fee of 0.50% of principal loan amount or Rs 15,000 whichever is more.

(b)  Change in the Spread of Variable rate loan to the current applicable spreads: This is permissible on payment of 50% of difference in two applicable rates or Rs 15,000 whichever is higher, up to maximum of 1.00% of the outstanding principal being converted. In addition service tax is payable in every cases.

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