Question 1

What is the minimum CIBIL score required for a home loan?

Accepted Answer

Most banks require a minimum CIBIL score of 700 to approve a home loan, though some NBFCs may consider scores as low as 650 with higher interest rates. A score above 750 significantly improves your chances of getting a lower interest rate and faster approval.

Question 2

What is the maximum home loan amount I can get?

Accepted Answer

The maximum home loan amount depends on your income, existing obligations, property value and the lender's policy. Generally, banks finance up to 75-90% of the property value (LTV ratio), and your EMI should not exceed 50-60% of your net monthly income.

Question 3

Can I get a home loan for an under-construction property?

Accepted Answer

Yes, most banks and NBFCs offer home loans for under-construction properties, provided the project is approved by the lender and registered with RERA. The loan is typically disbursed in tranches linked to the construction progress milestones.

Question 4

What is the difference between home loan pre-approval and final sanction?

Accepted Answer

Pre-approval is an in-principle approval based on your income and credit profile before you finalize a property. Final sanction is the formal approval issued after the bank verifies the property documents, valuations and legal title, confirming the exact loan amount and terms.

Question 5

Can I transfer my existing home loan to another bank?

Accepted Answer

Yes, home loan balance transfer allows you to move your outstanding loan to another lender offering a lower interest rate. This can reduce your EMI or total interest outgo significantly, especially if there is a rate differential of 0.5% or more.

Question 6

What are the tax benefits on home loan?

Accepted Answer

Under the Income Tax Act, you can claim deductions of up to Rs 1.5 lakh on principal repayment under Section 80C and up to Rs 2 lakh on interest payment under Section 24(b) for a self-occupied property. Additional benefits are available for first-time home buyers under Section 80EEA.

Question 7

What documents are required for a personal loan?

Accepted Answer

Typically, you need identity proof (Aadhaar/PAN), address proof, income proof (salary slips or ITR for the last 2 years), and bank statements for the last 6 months. Salaried applicants may also need a current employment letter confirming their designation and salary.

Question 8

Can I prepay my personal loan without penalty?

Accepted Answer

As per RBI guidelines, banks cannot charge prepayment penalties on floating-rate personal loans. For fixed-rate loans, foreclosure charges of 2-5% may apply depending on the lender's policy and how early you close the loan.

Question 9

How quickly can I get a personal loan disbursed?

Accepted Answer

Many lenders now offer instant personal loans with disbursal within 24-48 hours for pre-approved customers. For new applicants, the process usually takes 3-7 working days from application submission to final disbursement into your bank account.

Question 10

What is the maximum tenure for a personal loan?

Accepted Answer

Personal loan tenures typically range from 12 months to 60 months (5 years). Some select lenders offer extended tenures of up to 84 months (7 years) for high-ticket loans, though a longer tenure means higher total interest cost.

Question 11

Can self-employed individuals get a personal loan?

Accepted Answer

Yes, self-employed professionals and business owners can get personal loans by providing ITR filings for the last 2-3 years, business proof, and bank statements. Eligibility criteria and documentation requirements may be slightly stricter compared to salaried applicants.

Question 12

What is the difference between secured and unsecured business loans?

Accepted Answer

Secured business loans require collateral such as property, machinery or fixed deposits, resulting in lower interest rates and higher loan amounts. Unsecured business loans need no collateral but come with higher interest rates and typically cap at Rs 50-75 lakh for most lenders.

Question 13

What is the minimum business vintage required?

Accepted Answer

Most banks require a minimum business vintage of 2-3 years with profitable operations. Some NBFCs and fintech lenders offer business loans to entities with as little as 1 year of vintage, though they may charge a higher interest rate to offset the risk.

Question 14

Can startups get business loans?

Accepted Answer

Traditional banks rarely fund startups below 2 years of vintage, but government-backed schemes like MUDRA, CGTMSE and Stand-Up India provide financing options. Several NBFCs and fintech lenders also offer startup-friendly loans based on revenue projections and business plans.

Question 15

What is working capital loan and how is it different?

Accepted Answer

A working capital loan is short-term financing used to cover day-to-day operational expenses like inventory, salaries and overheads, usually structured as an overdraft or cash credit facility. Unlike a term loan which is repaid in fixed EMIs, working capital limits can be drawn and repaid repeatedly.

Question 16

What collateral is accepted for secured business loans?

Accepted Answer

Lenders typically accept residential or commercial property, industrial land, plant and machinery, fixed deposits and certain financial securities as collateral. The loan amount sanctioned is usually 60-80% of the collateral's market value depending on the asset type and lender policy.

Question 17

What types of property can be used as collateral?

Accepted Answer

You can pledge residential apartments, independent houses, commercial office spaces, industrial properties and plots of land with clear title. The property must be free from any existing encumbrance or legal dispute, and construction should be authorized by the local municipal authority.

Question 18

What is the maximum LTV ratio for LAP?

Accepted Answer

The Loan-to-Value ratio for LAP typically ranges from 50% to 70% of the property's current market value. Residential properties usually get higher LTV compared to commercial or industrial properties, and the exact ratio depends on the lender's risk assessment.

Question 19

Can I get LAP on a jointly owned property?

Accepted Answer

Yes, you can get a loan against a jointly owned property, but all co-owners must be co-applicants or provide their consent and sign the mortgage documents. This ensures lender security and legal clarity in case of any future disputes or default.

Question 20

How is the property valued for LAP?

Accepted Answer

Lenders appoint an independent approved valuer to conduct a physical inspection and assess the property's current fair market value. The valuation considers factors like location, construction quality, age of the building, prevailing market rates in the micro-market and municipal records.

Question 21

What happens if I default on my LAP?

Accepted Answer

If you default on your loan against property, the lender issues notices under the SARFAESI Act and can initiate recovery proceedings. After a 60-day notice period, the bank can take symbolic possession of the property and auction it to recover the outstanding dues.

Question 22

Which securities are accepted as collateral?

Accepted Answer

Most lenders accept shares listed on NSE/BSE that are part of approved lists (typically large-cap and select mid-cap stocks), along with mutual fund units and ETFs. The approved list varies by lender but generally includes Nifty 50 and Nifty Next 50 constituent stocks.

Question 23

What is the maximum LTV for loan against shares?

Accepted Answer

As per RBI guidelines, the maximum LTV for loan against shares is 50% of the market value of the pledged securities. For mutual fund units, the LTV can range from 50% to 65% depending on the fund type, with equity funds getting lower LTV than debt funds.

Question 24

What happens during a market crash?

Accepted Answer

If the value of your pledged shares drops below the required margin, the lender issues a margin call requiring you to either pledge additional securities or repay part of the loan. Failure to meet the margin call can result in the lender selling your pledged shares to recover the shortfall.

Question 25

Can I trade my pledged shares?

Accepted Answer

No, once shares are pledged as collateral they are marked with a lien in your demat account and cannot be sold or transferred until the lien is released. However, you continue to receive dividends and bonus shares on the pledged holdings during the loan tenure.

Question 26

Is loan against mutual funds different from loan against shares?

Accepted Answer

The core concept is similar — both are secured loans against financial securities — but LTV ratios, processing and margin requirements differ. Loan against mutual funds often provides higher LTV (up to 65% for debt funds) and is processed faster since NAV-based valuation is more standardized than stock prices.

Question 27

How does TatvaMoney help me get a better loan deal?

Accepted Answer

TatvaMoney compares offers from 30+ banks and NBFCs to find the lowest interest rate and best terms for your specific profile. Our expert advisors negotiate on your behalf and guide you through the entire process from application to disbursement at no extra cost.

Question 28

Is TatvaMoney an RBI-registered entity?

Accepted Answer

TatvaMoney operates as a loan aggregator and advisory platform under Finnova Financial Solutions, facilitating connections between borrowers and RBI-regulated banks and NBFCs. We do not lend directly but ensure every partner institution on our platform is fully licensed and regulated.

Question 29

Does applying through TatvaMoney affect my CIBIL score?

Accepted Answer

TatvaMoney performs a soft check on your credit profile during the initial eligibility assessment, which does not impact your CIBIL score. A hard inquiry is made only when you formally apply with a specific lender, and multiple applications to different banks in a short window count as a single inquiry.

Question 30

How long does the loan approval process take?

Accepted Answer

The timeline varies by loan type — personal loans can be approved in 1-3 days, home loans in 7-15 days, and business loans in 7-21 days. TatvaMoney's pre-screening and documentation support helps reduce the overall turnaround time significantly.

Question 31

Is there any fee to use TatvaMoney's services?

Accepted Answer

TatvaMoney's loan comparison and advisory services are completely free for borrowers. We earn a commission from lenders when a loan is successfully disbursed, so there is no hidden charge or upfront fee from your side at any stage of the process.

Question 32

How can I contact TatvaMoney for support?

Accepted Answer

You can reach our team via WhatsApp at +91 91759 93255, call us at +91 91759 93255, or email support@tatvamoney.com. Our loan advisors are available Monday to Saturday from 9:30 AM to 6:30 PM to assist you with any queries.

Frequently Asked Questions

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