It is relatively easier for salaried people to fund their temporary monetary needs through personal loans. Since flow of income for salaried employees is assured, the lenders are more comfortable in lending to salaried people than to self employed specially who are not professionally qualified. Amongst the salaried people, persons working with top listed companies get preferred treatment in terms of time for processing the application, documents to be submitted as well as the rate of interest offered. Personal loan for TCS employees is easily available as this is a top listed company and comes from the house of reputed Tata brand.
Who provide the personal loan for TCS employees
Since TCS is a very reputed company almost all the banks and Non Banking Finance Companies (NBFC) provide the personal loan to TCS employees. Amongst the active players providing a personal loan to TCS employees are bank like HDFC bank, Axis bank, State Bank of India, ICICI Bank, Dena Bank, Canara Bank, Standard Chartered bank, Kotak bank etc.. HDFC bank offers personal loan for TCS employees at concessional rate beginning from as low as 11.25%.
Amongst the NBFC providing personal loan to TCS employees Baja Finserv and Tata Capital are prominent.
Eligibility for personal loans
Personal loan for TCS employees is available based on the age, tenure of the personal loan choosen and income of the borrower. The personal loans are available to salaried as well as self employed persons between 21 and 60 years of age. In some cases lenders relax the upper age for making the personal loan application till 65 for self employed persons as theier working life generally extends beyond 60 years of age.
So the tenure available to you for a personal loan will depend on your present age. So in case you are salaried aged 58 years at the time of making the application for personal loan, you will only get a personal loan tenure of 2 years. Higher the tenure of the personal loan higher will be your loan eligibility.
Security and rate of interest
All the personal loans including the personal loan for TCS employees are given without any security either tangible or intangible in the form of personal guarantee of a third party. Since personal loans are given without any security there is higher probability of borrower defaulting on servicing the personal loan and therefore the rate of interest charged on personal loan are higher than any other loan except the credit card related borrowings.
Documents required for a personal loan for TCS employees
For availing the personal loan the TCS employee has to submit two sets of documents. In the first set of documents, the TCS employee has to submit basic “Know Your Customer” documents to prove the identity as well as the place of residence. For identity proof TCS employee can submit copy of the PAN card, Aadhaar Card, Driving Licence, Voter ID or passport copy. In some of the cases where TCS is in the approved list of companies for a personal loan even the employee identity card of the TCS employee is accepted by the lender as the identity proof.
For place of residence, in addition to the some of the documents enumerated above where the current address is printed on it, some other documents like utility bills, property ownership documents, leave and licences agreement, property tax payment receipts, bank statement or bank passbooks are accepted by the lenders.
The second part of documents which you need to submit to the lenders for getting the personal loan is the documents which conclusively establish your repaying capability. These documents also help the lenders ascertain your overall eligibility in terms of quantum of the loan for which you are eligible. For the purpose of getting a personal loan as TCS employee you can submit the salary slip issued by TCS. Additionally you may have to submit copy of the form No 16 issued by TCS. You can also submit copy of ITR if you have filed one.
The lender may also ask you to submit copies of your bank statement or bank passbook to ascertain whether you are presently servicing any other loan whether a personal loan or home loan. In case you are paying any EMI presently, your personal loan eligibility may come down to that extent. Unlike home loan the lenders do not allow you anyone else to joint as co-borrower except in the case of marriage loan where the bride and groom both jointly can apply for a personal loan for their marriage, to enhance their overall eligibility.
Tenure of personal loan for TCS employees
Like all personal loans the personal loans for TCS employees have the standard repayment tenure for personal loans for TCS employees. Generally the personal loan has minimum tenure of 12 months and the maximum period for which you can avail the personal loan as TCS employee is 60 months. Some of the lenders give personal loans for 84 months as well provided you have that much period of service left at the time of making the personal loan application.
Since lenders charge prepayment penalty ranging between 1% to 5% if you prepay the personal loan before its tenure, so it is very important for you to chose the tenure of the personal loan carefully based on your expected cash flow. If you chose a longer period you land up paying interest for that period at the rates which are higher in the case of a personal loan or pay prepayment penalty if you prepay it and if you chose the shorter tenure your loan eligibility in terms of amount may come do down accordingly.