Tata Capital Home Loan Eligibility

The applicant's age at the time of borrowing a Tata Capital Home Loan is the most important eligibility criteria. The younger is the borrower, the more repayment time they have to repay the loan. This allows the borrower to avail longer loan tenure and consequently, reduce the EMI paid on the loan. With Tata Capital Home Loans, younger borrowers can get up to 30 years to repay the loan. Whether you are a salaried or a self-employed individual, the loan tenure can be extended for maximum tenure. 

Let’s overview how does the age affects the tenure of applicants:

A Home Loan is a secured loan where the property for which you are applying for the loan is taken as security. So the value of the property along with the marketability is an important eligibility factor. Tata Capital will only provide a portion of this property value as per the Loan to Value (LTV) ratio. The remaining will be provided by the applicant as down payment on the loan. Maximum LTV for Tata Capital Home Loans is 80% of the property's value.

It is necessary for the lender to ensure that the individual applying for the loan is reliable. To check your reliability, the CIBIL score is assessed. This score is calculated based on your credit report which includes the repayments made on your past loans and also your credit cards. If you have been prompt in paying your dues and have also maintained a good track record with respect to Credit Card usage and other factors, your CIBIL score will increase. The higher is the CIBIL score, the better are the chances of getting an approval on your Home Loan.

You need to take care of the following factors that to improve your credit score for a required loan:

• Make sure that repayments on all existing loans and credit cards are made on time.
• Avoid taking unsecured loans. Too many unsecured loans signify credit hunger and impact the score.
• Do not use your credit card up to the maximum limit. This is a sign of some financial distress and can affect your credit score.
• Do not apply for several loans together, particular before applying a home loan.

Besides the deductions, there are several other expenses that you must include in your monthly budget. This includes expenses like EMIs and rent that you cannot forgo. As per your total expenses, your FOIR (Fixed Obligation to Income Ratio) is calculated by the lender. To qualify for Home Loan at Tata Housing Finance your FOIR ratio should be a minimum of 0.65.

For salaried individuals, there are several deductions on your salary such as PF, ESI, and so on. The amount that you actually take home each month after you have deducted this outgoing amount is known as the net monthly income. The higher is the net income, the better is your repayment capacity! Therefore, your net income plays an important role in assessing how much Home Loan you are actually eligible for.

Likewise the self employed and business owners need to furnish legal documents to prove the continual income to get the loan approval.

You can improve your Home Loan eligibility with a few simple steps such as:

• Clearing any short term loan that you currently have in addition to all your credit dues
• Improving your repayment capacity by showing other income sources available to you
• Applying for a joint loan with a family member who has a good salary or income
• Ensuring that all your repayments are made on time
• Receiving bonuses and added benefits from your current employer

Add a Co-applicant: 
If you are looking at improving your eligibility for a Home Loan, including an earning family member as a co-borrower can be of great use. This allows you to show the income of both the co-applicants when applying for a Home Loan. However, it is mandatory for the co-applicant to be a co-owner of the property as well.

In order to avail a loan with Tata Capital Home Loan, you need to fulfil certain eligibility criteria. These criteria are based on factors like your repayment capacity, age, income, and value of the property. You also have options of increasing your Home Loan eligibility by including a co-borrower for any loan that you apply for.

Next, getting your documentation right is the also an important step in availing of a Home Loan. The documents that you need to provide will depend on the nature of employment.

Here's the list of documents required for Tata Capital Home Loan:

• Proof of age: Passport, PAN Card, Driving License, Birth Certificate, Life Insurance Policy, School Leaving Certificate (any one).
• Proof of identity: Passport, PAN Card, Driving License, Voter's ID Card (any one)
• Proof of residence: Bank Statements, Utility Bills, Voter's ID Card, Property Tax Receipt, Property Registration Documents (any one).
• Proof of office address: Appointment Letter, Employee ID Card, Letter from employer on official letterhead (any one).
• Proof of income:
  • For salaried applicants: Last 3 months salary slips, appointment letter, certified true copy of Form 16, yearly increment letter (any one).
  • For self-employed applicants: Income Tax Returns for the last 2 years, Registration certificate for business commencement, Business Profile on letterhead (any one).
  • For NRI applicants: Last 6 months pay slips with employment stability documents like appointment letter or previous employment history.
• Bank statements:
  • Last 6 months bank statements of the salary account for salaried applicant
  • Last 6 months bank statements of operative current account and CC/OD facilities (if taken) for self-employed applicants.
  • Last 6 months details of overseas salary account and Indian NRE/NRO account statements for NRI applicants.
• Credit report of the current country of residence for NRI (if applicable)
• Details of existing loan(s) through bank statements
• Processing fee cheque issued from the salary account (of salaried applicant) or the business account (of self-employed applicant).
• Employed applicants have to provide their Aadhaar Card details as part of KYC document

Here are some common factors that may impact Home Loan interest rate at Tata Capital:

• Loan amount: The Home Loan amount has a considerable effect on the interest rate. The interest rate can be low for higher Home Loan amount.
• Income of the borrower: The income of the borrower plays an important role in determining their repayment capacity. Good interest rate is offered to high-income individuals. You can add the income of your spouse or any other eligible co-borrower to improve your eligibility and reduce the rate.
• Type of loan opted for: Different interest rates are offered on different types of Home Loan scheme. The interest rate also depends on the floating or fixed interest rate scheme. It is important to thoroughly study all the Home Loan offers and scheme before finalising the type of Home Loan.