® 
Apply Tata Capital Business Loan
Max Tenure
12 - 48
Best Rate
1.42% P.M
Processing Fee
2.5%
Features
- OD facility for loan upto 5 lacs
- End to end digital process
- Unsecured business loan upto 75 lacs
- Minimum business vintage upto 1 year
Pricing
- Interest rate: starting from 17% to 28% P.A.
- Processing Fee: 2.5% on sanctioned amount
Documents Required
- Pan & Aadhar
- Ownership proof
- Last 6 months Current account statement
- Business registration proof (Not Mandatory)
- Latest 2 yrs ITR & computation (Not mandatory)
- Last 6 months GST returns (Not mandatory)
- Last 2 yrs audited financial statement (Not mandatory)
- Last 2 years tax auidt report(Not mandatory)
Tata Capital Business loans
Tata Capital business loans are unsecured loans offered to businesses for their urgent financial requirements. Tata Capital business loans offer higher value business loans amounting up to Rs. 75 lakhs. The process of applying for business loans in Tata Capital is online and paperless. They offer flexible payment tenure. The loans can be used for opening a new store, procuring inventory or equipment, taking the business globally, procurement and implementing new technology, increasing manufacturing capacity, and much more.Let us look at some key features and benefits of Tata Capital business loans –
Key Features and highlights of Tata Capital business loans
| S.No | Key features and highlights of Tata Capital business loans | Notes |
|---|---|---|
1 | Unsecured loans with contactless and paperless application | No branch visits or physical documents submission |
2 | Flexible payment tenure that can be chosen by the applicant | Pay as per your business cash flow |
3 | Higher value loans starting from Rs. 40,000 to Rs. 75,00,000 | Choose as per your requirement |
4 | Loan tenure can vary from 12 - 60 months | - |
5 | Interest rates starting from 12% | - |
6 | Flexi EMI option available | Fixed and Structured |
7 | Customized loan amounts can be obtained | - |
8 | Business funding options | Term loan or overdraft |
9 | Quick approval of loans and fast disbursal | - |
10 | Minimum documentation | - |
11 | No Collateral required | - |
Key Benefits of Tata Capital Business loans
Tata Capital business loans are a trusted and faster way to get loans for your business needs and cash flow requirements. Let us discuss what are the key benefits of Tata Capital business loans-
1. Business expansion plans – Tata Capital business loans are helpful when you are planning to expand your business. Be it going online or opening stores in different geographies, a business loan is very helpful in achieving your objective.
2. Working capital and Inventory management – In a business, big or small, working capital and inventory form a considerable part of the expenses. Purchase of inventory to meet increased demand or paying out salaries, a business loan is a boon in such situations.
3. Meeting cash flow requirements – Ups and downs are part and parcel of any business. A business loan can help you meet that shortage in the cash flow.
4. Purchase of the latest equipment – Upgrading is an essential part of any business. Purchase of the latest equipment can also be funded by business loans.
The eligibility criterion for Tata Capital Business loans
| Parameter | Criterion |
|---|---|
Age | Between 21-65 years of age |
Credit score | 700 or more |
Business status | Should be profitable for 3 consecutive years |
Years in business | Minimum 2 years of stable business |
Balance sheet review | Audit is done by a registered Chartered Accountant |
Banking balance | Rs. 5,000 or more |
Documentation required for Tata Capital Business loans
| Parameter | Criterion |
|---|---|
Income proof | Bank account statement for the last 6 months Income tax returns for the last 2 years Balance sheet and P&L statements for the last 2 years |
KYC Related | Company’s KYC documents – Registration of Incorporation, Memorandum, and Articles of Association Company owners' KYC documents, PAN card |
Credit utilization | A detailed report about how the loan would be used |
Photo identity proof | Aadhaar card/driving license/Passport/Voter ID |
Bank Statements | Certified bank statements for the past 6 months |
Business proof | Ownership papers, Trade license, certified copy of partnership deed, Sales Tax certificate, or sole proprietorship declaration. |
Tata Capital business loans interest rates and charges
Tata Capital business loans start at a competitive 19% as compared to the other players in this market. However, depending on the company’s internal criteria, the interest rate may change on a case-to-case basis. Let us take a look at what are the types of business loan interest rates available with Tata Capital.1. Fixed business loan rates – In this type, you pay a fixed EMI throughout the tenure of the loan. It doesn’t change with time or other circumstances.
2. Floating interest rates – Here, the interest rate changes according to the change in the Repo-linked lending rate decided by the Reserve Bank of India (RBI). Your EMI value and tenure can change according to the changes made by RBI.
Now, let’s take a look at the various charges and fees levied by Tata Capital business loans.
Interest rates and charges for Tata Capital business loans
| Charge type | Charge | Notes |
|---|---|---|
Business loan interest rate | 19% | - |
Self-employed Non-professional | 16.50% onwards | - |
Self-employed doctor and professional | 13.50% onwards | - |
Processing fee for Self-employed Non-professional | 2% onwards | - |
Processing fee for Self-employed doctor and professional | 1.50% onwards | - |
Penal interest/additional interest | 3% on overdue +GST | - |
Bounce charges | Rs. 2,000 for every cheque + GST | - |
Mandate rejection service charge | Rs. 450 + GST | - |
CCOD Annual maintenance charges | First-year - 0.75% or Rs. 1,000 whichever is higher Subsequent years - 0.50% or Rs. 1,000 whichever is higher | Payable at the end of the 13th month |
Document processing charges | Rs. 1,999 + GST | - |
Outstation collection charges | Rs. 100 + GST per repayment instrument | - |
Statement of accounts | No soft copy, for branch visit - Rs. 250 + GST | - |
Foreclosure charges | 4.5% + applicable taxes | - |
Foreclosure charges in case of CCOD | 4.5% + applicable taxes | - |
Loan cancellation charges | 2% of the loan amount or Rs. 5750, whichever is higher + GST | - |
Instrument swap charges | Rs. 550 + GST | - |
Duplicate repayment schedule | No soft copy, for branch visit - Rs. 550 + GST | - |
Duplicate NOC | Rs. 550 + GST | - |
Foreclosure letter charge | No soft copy, for branch visit - Rs. 199 + GST | - |
Post-dated cheque charges | Rs. 850 + GST | - |
Factors affecting the interest rate on Tata Capital Business loans
1. CIBIL™ score – A good CIBIL™ score is a reflection of your financial discipline in the past. It shows your ability to pay your debts on time and in full without any defaults. Applicants with a higher CIBIL™ score are most likely to get a lower and more attractive interest rate.
2. Company history – Your creditworthiness as a business over some time is a good indicator of your business health. With experience and discipline together, there are more chances of qualifying for a better interest rate.
3. Annual Turnover – Goes without saying, the higher your turnover is, the more likely you are to pay your dues on time. Better bottom lines can fetch a better interest rate.
4. Revenues and profit – The lender would always like to check your revenues and profits after paying all expenses. Profitable books of accounts are always good for your credit score and hence the interest rates.
5. Business vintage – The older and well-run the business is, the higher the chances of getting a lower interest rate.
6. Guarantee/collateral – As a business, if you provide collateral or security, the lender’s risk is reduced and they are more comfortable with offering a lower interest rate.
What are the types of business loans available with Tata Capital?
1. Business loans for women – Tata Capital provides business loans for women entrepreneurs looking to scale up their businesses. These loans can also be obtained for working capital requirements.
2. MSME OR SME Loans - Small and medium-scale enterprises may often need capital to meet their business requirements. Tata Capital provides business loans to MSME Business Loan/SME businesses to help meet their expenses.
3. Machinery loan – Tata Capital provides machinery loans to businesses that need to buy new equipment/machinery to run/upscale their business.
4. Working capital loan – Tata Capital provides working capital loans to businesses to meet their everyday working capital requirements for the smooth functioning of their business.
Who can avail of a business loan from Tata Capital Business loans?
Tata Capital business loans are available to the following –
- Proprietorship firms
- Self-employed firms
- Limited liability partnership firms
- Partnership firms
- Closely held public limited companies
- Private limited companies
- Trusts
- HUFs
- Societies
The application process for Tata Capital business loans
Application to Tata Capital business loans is simple and can be done in various ways. Let us see how you can do it.
1. Online application for Tata Capital business loans – You can go to the official website of Tata Capital and click on the section “Business loans”. Click on “Apply now”. Proceed with the rest of the steps to complete the application.
You can also email them at contactus@tatacapital.com
2. Application on the phone for Tata Capital business loans – You can call the customer care number – 1860 267 6060
3. Offline application for Tata Capital business loans – You can visit the branch and apply. Make sure you carry all the required documents as listed by CreditMantri above.
4. Application to Tata Capital business loans via virtual assistant – You can log in to the official Tata Capital website and speak with Tia – their virtual assistant. After a few inquiries and messages, Tia will arrange for someone to get in touch with you for the loan.
What are the business loan EMI options available with Tata Capital business loans?
There are 2 EMI options available with Tata Capital business loans –
1. Fixed EMI – In this option, the EMI is fixed for the entire tenure of the loan. Ideal when you have a consistent and steady source of income.
2. Structured EMI – Under this option, you can choose a repayment plan that suits your business and income. Ideal for those with an inconsistent source of income.
Conclusion
Tata Capital business loans are a great option for businesses to meet their working capital requirement, buy machinery, expand their businesses, or just about anything related to the running of their businesses. They have an attractive interest rate starting at 19% and offer flexibility in terms of choosing interest rate types and payment tenures. They are worth exploring if you are looking for a business loan.
FAQs of Tata Capital Business loans
1. Why should you choose Tata Capital business loans?
Tata Capital business loans offer an attractive interest rate with no collateral or security required. They offer loans worth up to Rs. 75,00,000 with flexible payment options.
2. What is the interest rate offered for Tata Capital business loans?
The interest rate starts at 19% and can be different for self-employed individuals.
3. Do I need collateral to apply for Tata Capital business loans?
No, you do not need collateral to apply for Tata Capital business loans.
4. How does a business loan affect my credit score?
A business loan will positively affect your credit score if you pay all the dues consistently on time. It may, however, affect your credit score negatively in the opposite case.
5. How does a business loan application and payment model work?
The loan has a principal amount – which is the actual amount borrowed by the business. Interest is the money paid to the lender for borrowing the loan. Usually expressed as a percentage. Loan tenure is the duration within which the loan has to be paid back.
6. What is the minimum CIBIL™ score needed to get a business loan?
The minimum score needed to get a business loan is 700.