Tata Capital Housing Finance Home Construction Loan

Tata Capital Housing Finance is a trusted partner for those looking to build their dream home. Committed to providing flexible and affordable financing solutions, the company offers multiple loans to fulfil all your dreams. You will find comprehensive information about loan features, eligibility requirements, necessary documentation, and competitive interest rates designed to facilitate a smooth home construction process. This guide is crafted to assist both salaried individuals and self-employed individuals in understanding how to utilise construction loans effectively.

Tata Capital Housing Finance Construction Loan Interest Rates 

Below is the interest rate of Tata Capital Housing Finance’s construction loan:

Tata Capital Housing Finance Construction Loan Fees and Charges

The fees and charges associated with Tata Capital Housing Finance’s Construction Loan are:

• Processing Fee: Up to 2% of the loan amount plus applicable GST.
• Foreclosure Charges: Tata Capital does not charge foreclosure fees for prepayments made from its own sources.
• Part-prepayment Charges: There are no charges for part-prepayments made from your own financial resources.
• Late Payment Penalty: Interest on overdue amounts can be charged at 2.36% per month (inclusive of GST).
• Cheque Bounce Charges: A fixed amount per incident, typically around ₹500 plus GST.

Tata Capital Housing Finance Construction Loan Eligibility Criteria for Salaried

To qualify for a construction loan from Tata Capital Housing Finance as a salaried individual, you must meet several eligibility criteria:

• You should be between 24 and 65 years old at the time of loan maturity.
• Your minimum monthly income should be ₹30,000.
• You need at least two years of work experience, including a minimum of one year with your current employer.
• A good credit score, typically above 750, is important for securing favourable loan terms.
• Stability in your residential background and proof of continuous residence are required.
• Including a co-applicant, such as a spouse or family member with a steady income, can enhance your loan eligibility.
• You must provide clear and valid title documents for the property intended for construction, along with necessary construction approvals and permits from local authorities.
• The loan amount you are eligible for will be based on your income, repayment capacity, and the property’s value.
• Your debt-to-income ratio will be assessed to ensure you can manage loan repayments alongside other financial obligations.

Tata Capital Housing Finance Construction Loan Eligibility Criteria for Self-employed

Eligibility criteria for self-employed applicants – Tata Capital Construction Loan:

• 3 years of successful business operation are required.
• Consistent profitability for the past 3 years needs to be demonstrated through business financial statements.
• A minimum credit score of 750 is preferred for optimal loan terms.
• Valid ownership documents for the construction site are mandatory, along with all necessary construction permits and local authority approvals.
• Applicants must be between 24 and 65 years old at the time of loan maturity.
• The loan amount will be determined based on a comprehensive assessment of your income, business profitability, debt-to-income ratio, and the estimated post-construction value of the property.
• Applicants should exhibit a healthy debt-to-income ratio, indicating their ability to manage the new loan alongside existing financial obligations.
• You may be required to submit supplementary documents such as business licenses, GST returns, bank statements, and income tax returns.

Tata Capital Housing Finance Construction Loan Documents Required for Salaried

For salaried individuals applying for a construction loan with Tata Capital Housing Finance, you need:

• Identity Proof: Passport, Aadhaar Card, PAN Card, or Voter ID.
• Address Proof: Utility bills, Aadhaar card, or passport.
• Income Proof: Recent salary slips, Form 16 or Income Tax Returns from the previous year, and bank statements (last six months).
• Employment Proof: Employment certificate indicating salary and tenure. Recent promotion or appointment letters (if applicable).
• Property Documents: Approved building plans and municipal permissions. Title deeds and NOC from legal authorities.
• Loan Application: Completed and signed loan application form.
• Photographs: Recent passport-sized photos.

Tata Capital Housing Finance Construction Loan Documents Required for Self-Employed

For self-employed individuals applying for a construction loan with Tata Capital Housing Finance, documents required are:

• Identity Proof: Passport, Aadhaar, PAN, or Voter ID.
• Address Proof: Utility bills, Aadhaar, or Passport.
• Income Proof: Income Tax Returns (ITR) for the last three years. Profit and loss account balance sheets for the last three years, audited by a CA. Bank statements from the past six months.
• Business Proof: Business registration certificate. GST returns, if applicable.
• Property Documents: Approved building plan and municipal permissions. Title deeds and NOC from legal authorities.
• Loan Application: Fully filled and signed.
• Photographs: Recent passport-sized photos.

Features of Tata Capital Housing Finance Construction Loans

Tata Capital Housing Finance offers construction loans with unique features, some of which are:

• Borrowers can secure loans ranging from ₹5 lakhs to ₹5 crores, depending on their financial eligibility and the project requirements.
• The interest rates start at 8.75% per annum, making them affordable for a wide range of customers.
• Loan repayment periods are adjustable, ranging from 5 to 30 years, allowing borrowers to choose a schedule that best suits their financial situation.
• The construction loan can also cover the cost of purchasing the plot, not just the expenses related to the construction of the house.
• Borrowers can transfer their existing construction loans from other lenders to Tata Capital, benefiting from lower interest rates and better service.
• The loan approval and disbursal process is streamlined to ensure that funds are available promptly, usually within 3 to 5 working days after all required documents are submitted and verified.
• Tata Capital simplifies the application process with minimal paperwork, making it easier for borrowers to apply.
• There is no penalty for loans repaid from their own sources, allowing borrowers to clear their debts faster without extra charges.
• Borrowers can choose from various EMI plans to match their income flow, which helps manage their monthly budget more effectively.
• Optional insurance coverage is available to protect the borrower against unforeseen circumstances that may affect loan repayment.