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Key Features of Tata Capital Business Loan with Overdraft (OD) Facility

  • Types of Overdraft Facilities:
    • Working Capital Overdraft: For businesses needing flexible funding for daily operations with limits up to ₹90 lakh.
    • Dropline Overdraft: Combines flexibility of OD with reducing credit limit over time to lower borrowing costs.
    • Cash Credit Overdraft: For businesses requiring regular access to funds for operational expenses.
    • MSME/SME Overdraft: Tailored solutions for small and medium enterprises with collateral-free options.
    • Business Loan for Women Overdraft: Special facilities for women entrepreneurs with relaxed eligibility.
    • Machinery Loan Overdraft: For purchasing or upgrading equipment with flexible repayment.
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  • Loan Amount: Up to ₹90 lakhs depending on business profile, financials, and creditworthiness.
  • Interest Rates: Competitive rates starting from 13.25% p.a. for professionals and 16% p.a. for non-professionals. Interest is calculated only on the amount withdrawn, not the entire sanctioned limit.
  • Collateral and Security: Typically unsecured (no collateral required). Secured options available for higher limits if needed.
  • Repayment Flexibility: No fixed EMIs - repay as per your cash flow within the tenure (12 to 60 months). For Dropline OD, the limit reduces over time.
  • Tenure: Flexible tenure options from 12 to 60 months for unsecured facilities.
  • Purpose: Funds can be used for working capital needs, managing cash flow gaps, paying suppliers, purchasing inventory, or business expansion across various sectors.
  • Processing Fees and Charges: Transparent fee structure with no hidden charges. Processing fees applicable as per terms.
  • Eligibility: Business Type: Proprietors, partnerships, private limited companies. Business Vintage: Minimum 3 years of profitable operation. Age: Applicant must be 21-65 years at loan maturity. Credit Score: Preferably 650+.
  • Documentation: Identity proof, address proof, business proof (GST registration, trade license), financial documents (ITR, balance sheets, bank statements). Minimal documentation for pre-approved offers.
  • Application Process: Online via Tata Capital website or visit any branch. Eligibility can be checked quickly. Fast approval and disbursal within 24-48 hours.
  • Additional Benefits: Dedicated customer support. Online account management. Special schemes for women entrepreneurs and MSMEs.
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Benefits of Tata Capital Business Loan Overdraft

  • Flexible Fund Access: Overdraft allows businesses to withdraw funds as needed up to the approved limit, providing flexibility to manage cash flow fluctuations. Pay interest only on the amount utilized, not the entire sanctioned limit, reducing borrowing costs.
  • Collateral-Free Options: Most OD facilities require no collateral, enabling businesses without significant assets to secure funding up to ₹90 lakhs.
  • Quick and Easy Access: Fast approval and disbursal within 24-48 hours. Minimal documentation for existing customers with pre-approved offers.
  • No Fixed EMIs: Unlike term loans, OD facilities offer flexible repayment without mandatory equated monthly installments (EMIs), allowing businesses to repay based on cash flow availability.
  • Cost Efficiency: No commitment charges on the unused portion of the overdraft limit, ensuring businesses only pay for what they use. Competitive interest rates and daily interest calculation reduce overall borrowing costs.
  • High Loan Limits: Unsecured OD facilities offer up to ₹90 lakhs, catering to diverse business scales and needs.
  • Minimal Administrative Burden: Streamlined documentation and online management reduce paperwork and compliance efforts.
  • Business Growth Support: Funds can be used for expansion, inventory purchase, debt consolidation, or maintaining payment history, fostering long-term business growth.
  • Tailored Solutions: Specific products for different needs - Dropline OD for cost-effective borrowing, Working Capital OD for daily operations, and special schemes for women entrepreneurs.
  • Seamless Management: Online tools and mobile app for easy management of OD facilities. Dedicated customer support for application and servicing.
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How to Apply for Tata Capital Business Loan Overdraft

  • 1. Online Application Process
    • Step 1: Visit the Tata Capital Website
      • Go to www.tatacapital.com
      • Navigate to Business Loans > Overdraft Facilities
    • Step 2: Choose the OD Product
      • Select the specific overdraft facility that suits your business needs
      • Review eligibility criteria and features displayed on the product page
    • Step 3: Check Eligibility
      • Click on "Apply Now" or "Check Eligibility" button
      • Enter basic details such as business type, turnover, years of operation
      • Eligibility can often be assessed quickly
    • Step 4: Fill the Application Form
      • Complete the online application form with personal, business, and financial details
      • Specify the desired overdraft limit and purpose
    • Step 5: Upload Documents
      • Upload required documents (scanned copies or PDFs)
      • Identity/Address Proof: PAN card, Aadhaar, voter ID, or passport
      • Business Proof: GST registration, trade license, or partnership deed
      • Financial Documents: ITR and balance sheet for 2 years, 12 months' bank statements
    • Step 6: Submit Application
      • Review and submit the application
      • You will receive an application reference number for tracking
  • 2. Branch Application Process
    • Step 1: Visit a Tata Capital Branch
      • Locate the nearest Tata Capital branch using the branch locator on their website
    • Step 2: Consult a Relationship Manager
      • Discuss your business needs and the suitable OD facility
      • The manager will guide you on eligibility and documentation
    • Step 3: Complete the Application Form
      • Fill out the physical application form provided by the company
      • Provide details about your business, financials, and desired overdraft limit
    • Step 4: Submit Documents
      • Submit hard copies of required documents
    • Step 5: Verification
      • Tata Capital will verify your documents and may conduct a business verification
    • Step 6: Approval and Disbursal
      • Upon approval, the overdraft facility is activated in your account
      • Processing time is typically 24-48 hours

Eligibility Criteria for Tata Capital Business Loan Overdraft

  • Business Type: Proprietors, partnership firms, private limited companies, or self-employed professionals engaged in manufacturing, trading, services, or retail. Includes MSMEs, small businesses, and professionals like doctors, chartered accountants.
  • Business Vintage: Minimum 3 years of continuous business operation. For some products, 2 years may be acceptable with strong financials.
  • Annual Turnover: Business must show an upward trend in turnover. Specific thresholds may apply based on the product and business scale.
  • Age of Applicant: Applicant must be between 21 and 65 years of age at the time of loan maturity.
  • Credit Score: A credit score of 650 or above is preferred for better approval chances and competitive rates.
  • Financial Performance: Business must have been profitable for the last three financial years with audited balance sheets.
  • Scheme-Specific Eligibility Criteria
    • Working Capital Overdraft: For businesses with consistent cash flow needs. Minimum 3 years in operation with audited financials.
    • Dropline Overdraft: For businesses wanting reducing credit limit. Strong repayment capacity required.
    • MSME/SME Overdraft: For registered MSMEs with valid Udyam certificate. Relaxed criteria for smaller businesses.
    • Business Loan for Women: Women entrepreneurs may have relaxed eligibility criteria and preferential rates.
    • Repayment Capacity: The business must demonstrate ability to pay interest on the utilized OD amount through stable cash flow.
    • Documentation Readiness: Applicants must have up-to-date financial statements, KYC documents, and business registration proof.
    • No Major Defaults: Businesses should not have any recent loan defaults or write-offs reported in CIBIL or other credit bureaus.
    • Industry Type: Businesses in certain industries (e.g., agriculture, healthcare) may have special eligibility criteria or relaxed terms.
    • Debt-to-Income Ratio: A manageable debt-to-income ratio is required to ensure the business can handle additional debt responsibly.
    • Business Continuity Plan: A well-documented business continuity plan showing how the business will sustain in case of financial setbacks is advantageous.
    • Geographical Restrictions: Certain geographical regions may have special criteria or restrictions for applying, especially for rural or remote areas.
    • Business Licensing: Valid and up-to-date business licenses and other regulatory approvals may be required for specific industries.
    • Ownership of Assets: Applicants who own valuable assets, such as property or machinery, may have a better chance of approval and may secure more favorable terms.
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Documents Required for Tata Capital Business Loan Overdraft

  • For All Applications
    • Identity Proof (for applicant and co-applicant, if any): PAN card (mandatory), Aadhaar card, Voter ID, Passport, Driving license
    • Address Proof (for applicant and business): Aadhaar card, Voter ID, Passport, Utility bill (electricity, water, or gas bill, not older than 3 months), Rental agreement or property tax receipt
    • Business Proof: GST registration certificate, Trade license, Shop and Establishment Act certificate, Partnership deed (for partnership firms), Certificate of incorporation and Memorandum of Association (for private limited companies), Proof of business continuity
  • Financial Documents
    • Income Tax Returns (ITR): ITR with computation of income for the last 2-3 years
    • Balance Sheet and Profit & Loss: Certified by a Chartered Accountant for the last 2-3 years
    • Bank Statements: 12 months' statements (personal and business accounts)
  • Additional Documents
    • Professional Qualifications: For self-employed professionals (e.g., doctors, CAs), relevant degree/license certificates
    • MSME Registration: Udyam Registration Certificate for MSME/SME loans
    • Passport-size Photographs: Of the applicant
  • Application Form
    • Duly filled and signed loan application form

Factors for Tata Capital Business Loan Overdraft (OD)

  • Creditworthiness of the Applicant: A CIBIL score of 650 or above is preferred. No defaults or late payments on existing loans or credit cards. The company assesses the applicant's ability to manage additional debt.
  • Business Profile and Stability: Minimum of 3 years of continuous operation for most OD facilities. The nature of the business determines product suitability. Stable and consistent cash flow supports repayment capacity.
  • Financial Documentation: ITR for last 2-3 years shows financial health. 12 months' bank statements reflect transaction volume and cash flow. GST returns validate business activity and turnover.
  • Business Turnover: Upward trend in turnover is essential. Higher turnover may qualify for higher OD limits up to ₹90 lakhs.
  • Loan Amount and Purpose: The requested OD limit must align with business turnover and repayment capacity. Clear articulation of purpose (working capital, expansion etc.) strengthens application.
  • Repayment Capacity: Tata Capital evaluates ability to pay interest on utilized amount. For Dropline OD, the reducing limit structure requires disciplined financial management.
  • Applicant's Profile: Age must be 21-65 years at loan maturity. Should be business owner/partner/director with authority to apply. Professional qualifications required for some products.
  • Interest Rates and Fees: Rates start from 13.25% p.a. for professionals and 16% p.a. for others, based on credit profile and business type.
  • Existing Liabilities: Current debt obligations are considered to assess additional borrowing capacity.

Frequently Asked Questions (FAQs)

What is a Tata Capital Business Loan Overdraft (OD)?
A Business Loan Overdraft is a flexible credit facility offered by Tata Capital that allows businesses to withdraw funds up to a sanctioned limit as needed. Interest is charged only on the amount utilized, not the entire limit, making it ideal for managing working capital or short-term business expenses.
What types of Business Loan OD facilities does Tata Capital offer?
Tata Capital provides several OD facilities tailored to different business needs:
  • Working Capital Overdraft: For daily operational needs (up to ₹90 lakh).
  • Dropline Overdraft: Reduces credit limit over time to lower borrowing costs.
  • Cash Credit Overdraft: For regular access to funds.
  • MSME/SME Overdraft: Tailored for small and medium enterprises.
  • Business Loan for Women Overdraft: Special facilities for women entrepreneurs.
  • Machinery Loan Overdraft: For equipment purchase/upgrade.
Who is eligible for Tata Capital's Business Loan OD?
Eligibility includes:
  • Business Type: Proprietors, partnerships, private limited companies, or self-employed professionals.
  • Business Vintage: Minimum 3 years of operation (2 years in some cases).
  • Turnover: Upward trend in annual turnover.
  • Age: Applicant must be 21–65 years at loan maturity.
  • Credit Score: Preferably 650+.
  • Financials: Profitable for last 3 years with audited balance sheets.
What documents are required to apply for a Business Loan OD?
Key documents include:
  • Identity/Address Proof: PAN card, Aadhaar, voter ID, passport, or driving license.
  • Business Proof: GST registration, trade license, partnership deed, or incorporation certificate.
  • Financial Documents: ITR and balance sheet for 2-3 years, 12 months' bank statements.
  • Professional Documents: For self-employed professionals like doctors or CAs.
How can I apply for a Business Loan OD?
You can apply through:
  • Online: Visit www.tatacapital.com, go to Business Loans > Overdraft Facilities, fill the form, and upload documents.
  • Branch: Visit a Tata Capital branch, consult a relationship manager, and submit documents.
  • Customer Care: Call 1860-267-6060 to initiate the process.
Approval typically takes 24-48 hours.
What is the maximum loan amount I can get with a Business Loan OD?
Tata Capital offers overdraft limits up to ₹90 lakhs, depending on:
  • Business financials and turnover.
  • Creditworthiness and repayment capacity.
  • Type of overdraft facility chosen.
What is the interest rate for Business Loan OD?
Interest rates start from:
  • 13.25% p.a. for self-employed professionals (e.g., doctors, CAs).
  • 16% p.a. for non-professionals (traders, manufacturers).
Rates vary based on credit profile, business type, and loan terms.
Are there any fees or charges for Business Loan OD?
Tata Capital maintains transparency with:
  • Processing fees as per terms (no hidden charges).
  • No commitment fees on unused OD limit.
  • Prepayment charges may apply if foreclosing early.
Do I need collateral for a Business Loan OD?
  • Unsecured: Most Tata Capital Business Loan ODs are collateral-free.
  • Secured Options: Available for higher limits if needed.
What is the tenure of a Business Loan OD?
  • Flexible tenure options from 12 to 60 months.
  • For Dropline OD, the limit reduces over the tenure.
  • No fixed EMIs - repay as per cash flow within the tenure.

List of Tata Capital Business Loan Facilities

  • Tata Capital Dropline Overdraft Facility
  • Tata Capital Working Capital Overdraft
  • Tata Capital Cash Credit Overdraft
  • Tata Capital MSME/SME Overdraft
  • Tata Capital Business Loan for Women Overdraft
  • Tata Capital Machinery Loan Overdraft