Frequently Asked Questions for Home Loan


1. How do I apply for a Home Loan?

You can approach/reach us by any of the following ways:


2. What are the documents that I need to submit when I apply for the Home loan?

You need to submit any one of the documents in each of the following categories:

Age proof documents - Passport, Driving License, Life Insurance Policy, Birth certificate, Pan Card, school leaving certificate.

Identity Proof Documents - ID proof in the form of Passport, Driving license, PAN, voters ID card.

Residence address proof - Residence proof required in form of Utility Bill, Bank statements, Property registration documents, Property tax receipt, Voter id.

Office Address proof - Employee ID card/Appointment letter/Letter from employer on the letterhead.

Income Proof: For Salaried - Last three months’ salary slip and Appointment letter/ yearly increment letter and certified true copy of Form 16 ; / For self employed: last 2 years IT return with supportive documents , business profile on letter head , Registration certificate for business commencement

Income proof of NRI - latest last six months payslips along with employment stability documents such as appointment letter / previous employment history

Bank Statements - For salaried : Bank statement for the last 6 months from the salary a/c . For self employed: operative current account statement for 6 months, also, if any, CC / OD facilities taken corresponding bank statements for 6 months to be submitted for NRI applicants overseas salary account for 6 months and Indian NRE/ NRO account statements for 6 months to be provided.

Credit Report for NRI – NRI applicants have to sumbit Credit Report of their current country of residence where ever it is applicable as per TCHFL norms

Details of Existing loan - Existing loan details should be provided through bank statements.

Processing Fee cheque - To be issued from the salary account.


3. What is the maximum loan amounts that can be availed?

Rs. 10 Crores is the maximum loan amount that can be applied for.


4. Who can be the Co-applicants for the Home Loan?

You can include your spouse/parents/children/ siblings as a co-applicant for the Home Loan


5. Why should I take a loan from Tata Capital Housing Finance Limited (“TCHFL”)?

Maximum loan -
85% of the cost of the property (including the cost of the land) subject to valuation as per the regulations and based on the repayment capacity of the customer.

Maximum Term -
20 years subject to your retirement age.

Applicant and Co- Applicant to the loan -
Proposed owners of the property will have to be co-applicants. However, the all co-applicant need not be co owners.

Other Features:

  • Excellent property advisory team
  • Wide range of options designed to meet your specific needs
  • Transparent terms and conditions
  • Competitive interest rates
  • Door step service

6. What is the amount of application / processing fees that I have to pay?

0.50% plus GST out of which Rs.5,000/- plus GST payable initially at the time of application and the balance processing fee collected on sanctioning of the loan. The initial processing fee paid is non refundable and subsequent to disbursement, the balance processing fees is also non refundable.


7. Will Tata Capital Housing Finance Limited (“TCHFL”) refund my application fee?

This is a non refundable payment.


8. How long does it take to get a sanction for the Home Loan?

It takes approximately 7 Days to sanction the Home Loan, after receipt of complete documents.


9. What are my options for repayment?

Post Dated Cheques (PDCs)or Electronic Clearing Service (ECS), or RTGS or deduction from salary for TATA Group Employees are the modes for making repayments .


10. Can we avail a Fixed Rate Home Loan instead of Floating Rate?

Currently we don’t have a Fixed Rate product.


11. If the property is under construction, and I have not taken full disbursal, what options do I have regarding payment of EMI?

You have the option of paying either the Pre EMI (interest on the amount of loan disbursed thus far) for a maximum of 2 years or full EMI during this period or alternatively you may also opt for EMI for the disbursed loan quantum.


12. How is the interest on my loan calculated?

Tata Capital offers competitive floating interest rates linked to the Prime Lending Rate. The interest is calculated on the monthly reducing balance at the prevailing rate of interest on your loan.


13. Having taken a home loan, can I take a top-up loan without offering any additional security ?

Yes, once you have completed repayments on your existing loan for more than 12months, we offer you an additional top-up loan on your existing Home Loan Subject to terms and condition of TCHFLThe final sanction of such loan is at the sole discretion of Tata Capital Housing Finance Limited.


14. What are the charges for part prepayments on my loan account?

No Pre-payment charges on Floating Rate term loans sanctioned to individual borrowers.

Fixed Rate term loans:
i) No penalty is charged on partial prepayment up to a maximum of 25% of principal outstanding in a year
ii) Part Prepayment of more than 25% of principal outstanding will attract a 2% prepayment charges.


15. What are the charges on foreclosure of the loan?

No foreclosure charges are applicable:
i) Where the term loan is floating interest rate basis and sanctioned to individual borrowers, and
ii) Where the housing loan is on fixed interest rate basis and pre-closed out of the customers own sources.

Where housing loan is on fixed interest rate basis and pre-closed other than own sources, 2% plus taxes will be charged on the principal outstanding and all part payments, if any, made within immediate preceding 12 months of such foreclosure.


16. How is Home Loan eligibility determined?

We assess the applicants repayment capacity based on their income and existing repayment history and market value of the property as per valuation while deciding on the loan eligibility.


17. What is the maximum period allowed for repayment of Home Loan?

Maximum of 20 Years, Subject to retirment age of the borrower or 65 years in the case of self employed.


18. After how many days of sanction, the loan is disbursed and what is the procedure of disbursement for outright purchase of house and for construction of house?

Loan is disbursed in full for outright purchase of ready built property as soon as the customer completes all formalities and fulfils the sanction conditions. For under construction project, the disbursements are in installments based on the construction stage / level.


19. What extra benefits are available to a Home Loan borrower?

Income tax benefits and Insurance benefits (if opted for).


20. What is the arrangement of Life Insurance facility to secure my Home loan?

Provide your family the benefit of an insurance policy from Tata AIG Life Insurance Company a unique level term insurance cover that pays an amount equal to your initial loan amount in the event ofany eventuality . This insurance plan that covers your life to the extent of the outstanding loan amount, against a single one time premium. This insurance policy is underwritten by Tata AIG Life Insurance Company and it is at sole discretion of TATA AIG Life Insurance Company Limided.


21. Why is Rate of Interest higher in Loan Against Property as compare to Home Loans?

Home Loans are meant for the special purpose of providing housing facility to individuals at affordable costs. Whereas in case of Loan Against Property, funds are raised for business/ personal purpose generally targeted at business expansion/ infusion of working capital in the current business or to meet personal requirements.



22. Why has my Home Loan’s Rate of Interest (ROI) increased?

The Increase in Rate of Interest is due to the recent hike in Tata Capital Home Finance Limited Prime Lending Rates (PLR). The PLR is changing because there is a change in the cost of borrowing of the company based on the prevailing market conditions as judged by TCHFL from time to time.


23. What is the process of reducing my loan tenor in case of any Rate Hike ?

You could reduce your loan tenure by choosing from any of the following:
a) Increasing your EMI
b) Making a part pre-payment of your loan or
c) A combination of these two options. To reduce your loan tenure, please visit the nearest loan servicing branch.
After the change in EMI you are requested to submit New ECS mandate / Post Dated Cheques (PDCs) with the updated EMI.


24. I want to foreclose my contract, what will be the Foreclosure charges ?

No foreclosure charges
i) if loan is availed on floating interest rate basis and
ii) if the loan is availed on fixed interest rate basis and pre-closed by the customer out of his own sources ; or else 2 % on the Outstanding Loan Amount + GST. Please refer to the details in the schedule of service charges


25. I want copies of my loan Agreement?

Request you to place a request by marking a mail to or call 1800 - 2096 – 060 or you can contact our
Customer Relation Executive at the nearest branch.

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