APR Calculator

The Annual Percentage Rate calculator is provided to compute annualised credit cost which includes interest rate and charges, applicable at the time of loan origination.

Steps to Use APR Calculator :

• Enter Rate of Interest
• Enter Loan Tenor
• Enter the additional fees amount. This refers to the total amount contributing to the cost of your loan such as Processing fee, Account Maintenance Charges, Legal and technical Charges, Insurance Premium and Broken Period Interest.
   

*The output values mentioned in the APR calculator are based on the input provided in the respective field, as indicated in the calculator. Tata Capital Housing Finance Limited shall not be responsible for any output produced due to incorrect input feed.

APR is the annual cost of credit to the borrower which includes interest rate and all other charges levied in respect of the credit facility. It gives a complete picture of the loan cost by factoring therein,  inter alia, the following:

• Interest rate
• Processing fees
• Verification & maintenance charges
• Annual maintenance charges
• Insurance charges
• Legal charges
• Any other charges/ fees recovered from the borrowers either by the Company or on behalf of third-party service providers
  
  

Note: APR excludes contingent charges (e.g. penal charges, foreclosure charges, etc) that are levied upon occurrence/ non-occurrence of certain event

Easy Explanation for Customers:

When you take a loan, the interest rate tells you the basic cost of borrowing – it's the percentage charged on the loan amount annually.

However, the APR includes not just the interest, but also other charges like processing fees, verification charges, service costs, etc. This gives you the true cost of the loan per year.

Example:

• If your loan has an interest rate of 9%, that’s what you pay on the principal.
• Further, to arrive at APR other fees / charges will be included, resulting in APR (e.g. 9.12%) higher than ROI (9%).
• This higher figure reflects the actual annual cost of the loan.
   

However, please note Interest Rate is charged to you which is excluding any other fees and charges.

In Simple Terms:

• Interest Rate = Cost of borrowing the principal
• APR = Total yearly cost including fees