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Tamilnad Mercantile Bank Car Loan Eligibility
Owning your dream car is made easy with car loans from Tamilnad Mercantile Bank (TMB). The car loan scheme from TMB is one of the most popular retail loan schemes available for existing customers of the bank as well as new borrowers.
Tamilnad Mercantile Bank, popularly known as TMB, was established during the pre-Independence era in the year 1921. Initially, known as Nadar Bank Ltd, TMB was started by a group of shrewd businessmen from Tuticorin in South Tamilnadu.
In the first few years of the bank’s history, the bank had only four branches in a few towns in South Tamilnadu. Today, the bank has grown significantly with 509 branches not just in Tamil Nadu but pan-India. TMB also has tie-ups with HDFC and IDBI banks at key locations, thereby effectively expanding its network.
TMB offers the best deals for customers looking to purchase a new four-wheeler or used cars. Low-interest rates, minimal documentation, simple eligibility requirements, easy terms and conditions, quick processing and speedy disbursal of loan amounts make four-wheeler loans from TMB incredibly popular, not just among existing customers of the bank but also new borrowers.
Here, in this guide, you can find all that you need to know about car loan eligibility, documentation, and loan features from Tamilnad Mercantile Bank.
Overview of TMB Car Loan Eligibility
Tamilnad Mercantile Bank offers car loans to individuals looking to purchase new or old four-wheelers. Apart from car loans to individuals, TMB also offers Vehicle Finance Option for commercial vehicles. This option can be availed by businesses looking to purchase commercial vehicles for business use.
Purpose of Car Loans from TMB
- To purchase a new four-wheeler – car, jeep or van – for personal or professional use
- To purchase second-hand (used) cars that are not more than four years old and are in good working condition
Who is eligible for car loans from TMB?
Tamilnad Mercantile Bank offers car loans to the following categories of customers:
- Individuals
- HUFs (Hindu Undivided Families)
- Public and private limited companies
- Partnership firms
- Trusts, charities and other such organizations
Income eligibility criteria for a car loan from Tamilnad Mercantile Bank
Tamilnad Mercantile Bank offers car loans to individuals who meet the following criteria:
- A minimum annual income of Rs. 1,20,000 or more for four-wheeler loans
- The applicant may be required to include the income of spouse/children or other family members, as required for further verification of income
The income eligibility criteria for other borrowers like limited companies and sole proprietorship is:
- The average debt service coverage ratio of the applicant should 1.50:1 or more
TMB Car Loan Eligibility Criteria for Different Categories of Borrowers
Take a look at the eligibility criteria for different categories of borrowers:
For Salaried Individuals
- Minimum age of the applicant should be 21 years
- Maximum age of the applicant at the time of loan maturity should not exceed 58 years
- Employment criteria – Must have work experience of 2 years, with minimum 1 year of continuous employment in the current job
- Income criteria - Minimum annual income of Rs.1,20,000 or more
- For salaried individuals, the loan EMI should not exceed 40% of the take-home pay
For Self-Employed
- Minimum age of the applicant should be 21 years
- Maximum age of the applicant at the time of loan maturity should not exceed 65 years
- Employment criteria – Must have experience of 3 years in business
- Income criteria – The income eligibility requirements vary based on the size of the car:
- For the purchase of standard cars like sedans, the applicant must show a net business profit of Rs. 6,00,000 per annum or more
- For the purchase of bigger cars like mid-sized vehicles and premium vehicles, the applicant must show a net business profit of Rs. 10,00,000 per annum or more
For Public and Private Limited Companies and Partnership Firms
- Income criteria – The income eligibility requirements vary based on the size of the car:
- For the purchase of standard cars like sedans, the applicant must show a net business profit of Rs. 6,00,000 per annum or more
- For the purchase of bigger cars like mid-sized vehicles and premium vehicles, the applicant must show a net business profit of Rs. 10,00,000 per annum or more
- The company must have a minimum turnover of Rs. 4.5 lakhs or more
What’s the maximum loan limit for car loans from TMB?
TMB offers car loans up to Rs. 150 lakhs for the purchase of new vehicles and up to Rs. 15 lakhs for the purchase of used/second-hand vehicles. However, the maximum loan amount for each applicant is determined on a case-by-case basis, after considering several factors like income levels, credit scores, credit history, and more.
Car Loan Margin
- For new vehicles – 15% of on-road price
- For old vehicles – 30% of the market value or purchase value
Repayment Schedule
Borrowers can choose their preferred repayment tenures based on the EMIs that they can afford. The maximum available tenure is five years.
Tamilnad Mercantile Bank Car Loan Required Documentation
The documentation required for car loans from TMB is minimal, and applicants require to submit only the usual KYC documents. Here’s a list of the documents that borrowers can submit along with the loan application as proof:
| Proofs | Salaried Individuals | Self Employed Individuals |
|---|---|---|
| Age proof | Voter ID, Passport, driving license, PAN card, Aadhaar card, ration card with photo, employer certificate, school or college ID, or school leaving certificate | Voter ID, Passport, driving license, PAN card, Aadhaar card, ration card with photo, school or college ID, or school leaving certificate |
| ID Proof | Pan Card, passport, voter ID, Aadhaar card or driving license | Pan Card, passport, voter ID, Aadhaar card or driving license |
| Address proof | Passport, voter ID, EB bill, telephone bill, property tax receipt | Passport, voter ID, EB bill, telephone bill, property tax receipt |
| Income proof | Salary slips for the last 3 months, bank statement for the last 6 months showing salary being credited in the account and latest Form 16 | The balance sheet of the business for the last 3 years certified by a CA, ITR for the last 3 years, and 6 months of bank statements (current and personal) |
| Signature verification proof | PAN card, driving license or passport | PAN card, driving license or passport |
Apart from these KYC documents, applicants also have to provide the following:
- Quotation from a registered vendor
- Proof of income (salary slip, balance sheet, bank balance, IT returns, etc.)
- Letter from a third-party guarantor, if applicable
*Note that applicants may be required by the bank to submit additional documents if needed.
Latest Tamilnad Mercantile Bank Car Loan Interest Rates
TMB follows the MCLR (Marginal Cost of Funds based Lending Rate) to determine the interest rate for its borrowers. The current base rate for car loans from TMB is 9.75% per annum.
FAQs on Tamilnad Mercantile Bank Car Loan Eligibility
1. Who is eligible to provide a guarantee for applicants of car loans from TMB?
- In case of HUF, the male members of the family can provide a guarantee
- In case of individual borrowers, father or spouse of the applicant or a third-party guarantor
- For other borrowers – partners, trustees or directors can provide guarantee
2. Are there any prepayment charges for car loans from TMB?
Prepayment charges are not levied when the borrower closes the loan by paying from his/her own source of funds. However, prepayment charges are applicable when the borrower forecloses the loan by switching to another lender. In this case, the prepayment charge is 0.25% of the amount prepaid.
3. What are the loan processing charges?
The loan processing charge is fixed at 1.00% of the loan sanction amount.
4. How to apply for a car loan from TMB?
Applicants have to provide the following along with the loan application letter by visiting the nearest TMB branch:
- Proof of income (salary slips / IT returns / other documents)
- Quotation from vendor
- Letter from a third-party guarantor
- RC book copy of the vehicle and duplicate key should be submitted along with the loan application
5. Can applicants apply for a loan online?
Yes. TMB offers online application facility for car loan borrowers. Visit the official website of TMB and start the loan application process by filling up the online application form.
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