Tata Capital Housing personal loan interest rate

Housing finance company. Not required to price off an external benchmark — it lends against an internal reference rate, so rate cuts historically arrive more slowly than increases.

Personal loan spreads are far wider than home loan spreads because the debt is unsecured — there is no asset to recover, so the price of risk is carried entirely by the rate. A lender advertising from around 10% may well quote more than double that to an applicant with a thin file.

Tenure is capped much shorter than a home loan, typically at five or six years, which keeps total interest down but pushes the EMI up. Check the foreclosure terms before signing: the ability to prepay without penalty is worth more than a small difference in the headline rate.