
New customer
Customers onboarded from September 1st, 2024.
Securing a home loan can be a convenient and comfortable way to finance your dream home. However, navigating the various rates and charges involved can often be overwhelming. Whether you're a first-time homebuyer or a seasoned real estate investor, understanding the various costs associated with obtaining a home loan can help you make informed decisions and secure the best possible terms.
*Final ROI may vary based on credit checks, property & other parameters
*Home loan interest rates are subject to change. For current rates, please visit the official website of the lender.
Home Loan
Customer Profile | Loan Amount | Delayed EMI Payments | Cheque dishonour charges/rejection of NACH/ECS mandate | Interest Rate | Processing Fees |
---|---|---|---|---|---|
Salaried | 5 lakhs to 7.5 Crores | 2.00% P.M. (24.00% P.A.) on the defaulted amount | Rs 700/- per instrument per process | Starting @7.99% per annum | Rs. 5,000+GST |
Self Employed | 5 lakhs to 7.5 Crores | 2.00% P.M. (24.00% P.A.) on the defaulted amount | Rs 700/- per instrument per process | Starting rate @ 8.35% per annum | Rs. 10,000+GST |
Home Equity
Customer Profile | Loan Slab | ROI* (%) |
---|---|---|
Salaried/Self Employed | Any Amount | 9.50% onwards |
*Home loan interest rates are subject to change. For current rates, please visit the official website of the lender.
New customer
Customers onboarded from September 1st, 2024.
Effective From (Applicable for Retail Customers) | NRPLR |
---|---|
September 1st 2024 | 10.80% |
April 12th 2024 | 10.60% |
Effective From (Applicable for Corporate Customers) | NCPLR |
---|---|
September 1st 2024 | 10.10% |
April 12th 2024 | 9.90% |
*Home loan interest rates are subject to change. For current rates, please visit the official website of the lender.
Range of Interest Summary for the period of Quarter 4 FY 25 - 26
Product | Minimum ROI | Maximum ROI | Mean |
---|---|---|---|
Home Equity | 8.2% | 20.0% | 11.5% |
Home Loan | 8.5% | 16.0% | 10.0% |
Notes
The processing fee of a home loan is a one-time charge levied by lenders for processing home loan applications. At Tata Capital, we take very nominal processing charges for home loans to minimize your home ownership costs. Our processing fees for home loans are only upto 3% of loan amount+ GST.
At times, you may have surplus funds, and you may want to make a pre-payment or part pre-payments of your home loan. The foreclosure charges, also known as the home loan pre closure charges, are levied by lenders when borrowers wish to pre-pay their home loan. At Tata Capital, we don’t levy any home loan prepayment charges when you pre-pay your home loan with your funds.
Missing or defaulting your home loan EMIs may lead to delayed EMI payments. This generally happens due to insufficient funds in your bank account. Delaying EMI payments can attract heavy penalties and additional home loan charges from your lender. It may also dampen your credit score. At Tata Capital, we levy a charge at the rate of 2.00% P.M. (24.00% P.A.) on the defaulted & Rs 700/- per instrument per process.
If a borrower defaults on his/her home loan, the lender may have to hire the services of a collection agency to pursue payments. These collection agencies charge a fee for their services, which the lender levies on the borrower.
Once a borrower submits his/her property documents for home loan sanction, the lender sends them for legal verification. The lender may incur a fee for this verification, and hence, it may levy legal home loan charges on the borrower.
Apart from the housing loan processing fee, foreclosure charges, and legal charges, lenders may levy certain miscellaneous home loan fees and charges. These may include home loan registration charges, MOD charges for home loan, PDC charges, loan cancellation charges, cheque bounce charges, account maintenance charges, and NOI charges for home loans. You should be aware of all home loan charges before applying for a home loan with a lender.
When you avail of a home loan to purchase or construct your house, a housing loan interest rate is levied on the loan amount. The interest rate on a house loan is usually expressed as a percentage and is charged on the principal home loan amount for the entire home loan tenure.
Tata Capital offers one of the most competitive home loan interest rates in India. Our housing loan interest rate starts from just 7.99% per annum*.
Furthermore, depending on your home loan eligibility, income, credit score, and a few other parameters, we can determine the best home loan interest rates as per your requirements.
Additionally, when you apply for a home loan with Tata Capital, you do not have to worry about home loan hidden charges. From home loan prepayment charges to the processing charges for home loan to MODT charges, we transparently convey every expense.
The interest on a housing loan is usually calculated on the outstanding principal amount at the end of each day. The lending institution takes the outstanding loan amount per day and multiplies it by the latest home loan interest rate.
Housing loan rates may remain fixed or vary during the loan tenure. In the case of variable housing loan interest rates, the current home loan interest rate is derived based on the monetary policy of the RBI, including its Base Lending Rate and Marginal Cost of Funds Based Lending Rate (MCLR). Your home loan rate also depends on your credit rating and may vary across lenders.
You can use the following formula to calculate your home loan EMIs based on the applicable home loan rate:
EMI = [P x r x (1+r) ^n]/[(1+r) ^n-1]
Wherein ‘P’ is the principal home loan amount, ‘r’ is the present home loan interest rate, and ‘n’ is the number of installments you need to pay or loan tenure in months.
The applicable interest rate on a housing loan consists of two components - the base rate and the markup rate. The combination of these two is what you have to pay as interest on your house loan. The effective home loan interest rate is calculated by adding the base rate and the markup rate.
Lenders consider several factors while determining home loan interest rates. Below are the factors that affect home loan
interest rates in India:
Lenders primarily offer two kinds of property loan interest rates in India - fixed interest rates and floating interest rates.
Fixed | Floating |
---|---|
The rate of interest on a home loan never changes, irrespective of the market volatility. | In the case of floating home loan interest rates, the rate of interest on a home loan keeps changing as per the current market scenario. |
You will have to pay equally divided EMIs for the entire loan tenure with no unexpected changes in the middle. | Floating home loan interest rates depend on the variable base rates offered by lenders, and hence, they are revised automatically with any change in the base rate. |
At Tata Capital, you can apply for a home loan either online or offline.
To apply online, follow these steps:
A home loan processing fee is a one-time charge levied by lenders to cover the administrative expenses incurred by them while processing a home loan application. This fee is usually non-refundable and may range between 1% and 3% of the total loan amount, depending upon the lender. Some lenders may charge a flat amount as a home loan processing fee, irrespective of the loan amount.
At Tata Capital, we take very nominal processing fees on home loans to minimize your home ownership cost. Our home loan processing fee is just 0.5% of the loan amount plus GST.
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