Tamilnad Mercantile Bank Home Loan

About Tamilnad Mercantile Bank

The State Bank of India, founded in 1806 is one of the largest and oldest commercial banks in Asia. It is a major banking and financial services public sector company with more than 24,000 branches and 59, 000 ATMs. It is the largest bank in India which has a 20% market share in deposits and loans among commercial banks, truly being a bank for every Indian.

What Is a Home Loan ?

Home Loan is offered to individuals who wish to construct or buy a house. The property bought or about to be constructed is mortgaged as collateral until the repayment of the loan is completed with full interest. The repayment of the loan generally depends on the capacity of the borrower. Normally, the home loan tenure ranges between 5 to 30 years. The borrower can opt for either floating type of interest of fixed interest rate. Home loan provides tax benefits to the borrowers.

An Introduction to Tamilnad Mercantile Bank Home Loans

Being one of the largest bank in India, South Tamilnad Mercantile Bank offers a wide range of services in the personal loan segment. It is one of the most preferred bank in India by all kinds of people for any financial service. Packed with exclusive benefits, South Tamilnad Mercantile Bank Home Loans are tailor made catering to the needs of various customers.

Advantages of Tamilnad Mercantile Bank Home Loans

• Low interest rate
• No hidden costs and administrative charges
• Low processing fees
• No security needed
• Less paperwork
• No prepayment penalties

Features of Tamilnad Mercantile Bank Home Loans

Key Highlights

Objective

To Construct / Purchase a New House / New Flat or the cost of extension / Renovation / Purchase of Old House / Flat, Take over from other Banks / FIs.

Eligibility Criteria

To avail the personal loan from Tamilnad Mercantile Bank, you need to have the following eligibility criteria.

• HUF, Individuals aged between 18 and 50 Years. In case of Joint Borrowers, if any one of the applicant's age is below 50, they can avail Loan under "TMB - Home" Loan Scheme, jointly.
• Steady income
• Salary slip of last 3 months
• Proper Address Proof and Identity proof

Loan Amount

• Up to Rs. 500 Lakhs in case of Metropolitan centres & Rs. 300 Lakhs for Non-Metro Centres.
• For Special cases, where IT returns are not available not exceeding Rs. 10 Lakhs.
• Up to Rs. 25 Lakhs for Renovation.
• Top-up Loans- Maximum of 15% of the original Loan amount or Rs. 15 Lakhs, whichever is lower for the purpose of improvements in the existing house for which, Loan has already been sanctioned by the Bank.
• Take-over of Loans from other Banks / FIs: - Actual amount outstanding.

Loan Tenure

A maximum of 30 Years (excluding Holiday Period)

Prepayment Charges: Nil

Penal Interest

Any irregularity or default in repayment will attract penal interest of 2.00% p.a. over and above the above rate of interest on the balance outstanding.

Processing Fees

0.50% of the Limit Sanctioned without any maximum cap plus Taxes as applicable

Relaxation

The Sanctioning Authority may relax:

• The upper age Limit up to 55 Years, in the case of Government Employees of PSUs where the retirement age is 60.
• In case of Professionals like Doctors, Engineers, Lawyers and Chartered Accountants, the upper age Limit may be relaxed up to 60.
• In the case of Businessmen also, the upper age Limit may be relaxed up to 60 Years.

Interest Rates: Current Base Rate for Lending (BR) is 9.75% p.a

Margin

• For New Flat - 25%
• Plot Purchase and Construction of House - 25%
• Construction of House on existing plots - 10%
• Renovation of House aged below 5 Years Old - 25%
• Renovation of House aged above 5 Years Old - 40%
• Renovation of Old Flat - 30%
• In case of outright purchase, the loan amount should be sanctioned based on purchase cost, market value or Registration Value whichever is lower. In case of the house construction on the pre-owned plot, the loan may be sanctioned with 10% margin provided the total realizable value of the property after construction (i.e. Land and Building) should be more than 133.34% of Loan Amount.

Security

Equitable Mortgage of the Land / House / Flat purchased / constructed / acquired under the Loan and the improvements / additions thereto. Guarantee: a) In case of HUF - Guarantee from male members of the HUF. b) In case of Individuals: Spouse or father of the applicant or third party.

Documents Required to Apply for Tamilnad Mercantile Bank Home Loans

Important documents to be submitted while applying for personal loans with Tamilnad Mercantile Bank

Tamilnad Mercantile bank Home Loans for NRIs

Purpose

• To purchase ready built new house / flat or house / flat under construction
• To purchase old house / flat
• To construct house on his / her own land
• To purchase land for construction of house within 2 years from the date of purchase of land.
• To take-over of housing loan availed from other Banks / FIs
• For renovation/extension / repair / furnishing.
• Reimbursement of investments already made by the borrower provided the investment has taken place within preceding one year.

Eligibility

General:

a) Non-Resident Indians (NRIs) holding Indian passport or Persons of Indian origin (PIOs) holding foreign passport, singly or jointly or joint with spouse or close relatives of NRI applicant.

For this purpose, Person of Indian Origin means a citizen of any country other than Bangladesh / Pakistan / Sri Lanka / Afghanistan / China / Iran / Nepal & Bhutan if:

• p He/She at any time held Indian passport (or)
• p He/She or either of his parents or any of his grandparents was a citizen of India by virtue of the constitution of India of the Citizenship Act 1955 (or)

iii. the person is a spouse of an Indian citizen or a person referred to in sub clause (i) or (ii) as stated above.

In case of NRI holding foreign passport, intimation to RBI via form IPI - 7 within 90 days of purchase of property or final payment of Consideration - It is obligatory on the part of the applicant. However, branches have to obtain documentary evidence for the same.

Age:

NRI/PIO individuals/jointly with NRI/PIO or resident spouse aged between 21 and 50 years. In the case of Joint borrowers, if any one of the applicants is aged 50, they can avail loan under this scheme jointly. The last instalment should not go beyond the age of 65 years.

Relaxations:

In the case of Professionals like Doctors, Engineers, Lawyers, Chartered Accountants and Business Men etc., the Sanctioning authority may relax the upper age limit upto 55 years.

Staying Abroad:

a) In case of salaried employee:

His/her stay abroad should have been for a minimum period of two years (or)

He/She has a valid job contract for a minimum period of two years abroad and has completed 6 months of employment (or)

He/She is working abroad on assignments with foreign Governments / government agencies or International / Regional Agencies like the UNO, IMF, World Bank etc. or Central Government, State Government or Public Sector Undertakings, officials deputed abroad on temporary assignments or posted to their offices (including Indian Diplomatic Missions) abroad.

b) In case of self-employed applicant or Business Men: His/her stay abroad should have been for a minimum period of 3 years.

Maximum No. of Housing Loan Entitlements

Loan upto 2nd housing unit is allowed.

Quantum of Loan

For Metropolitan Centres: Up to Rs. 500 Lakhs

For Non-Metro Centres: Up to Rs. 300 Lakhs

For Renovation: Up to Rs. 25 Lakhs

For Take Over: Loan amount for take over should not exceed the actual amount outstanding with the other Bank/FIs.

For Top-Up Loans: Maximum of 15% of the original Loan amount or Rs. 7.5 Lakhs whichever is Lower. Such top up loans shall be allowed only after 3 years from the date of commencement of repayment of the original loan.

Conditions for Top Up Loans

a. There should not be arrears of any EMI / Principal / interest / Other claims in the loan account. i.e. Conduct of the account should be satisfactory throughout the period

b. Original LTV should be continued to be maintained, and the total loan for the purpose of LTV shall include the top up loan and the outstanding balance in the original loan.

c. Asset should not be revalued for the purpose of arriving at eligible LTV.

d. Borrower should have adequate headroom in salary / business income as per eligibility norms, to meet the total EMI commitments of the loans.

e. Approved Plan should be available, where Top-up loans are allowed for additional construction.

Security

Equitable Mortgage of the Land / House / Flat purchased / constructed / acquired under the Loan and the improvements / additions thereto.

Margin

New Flats - 25%, Purchase of Plot and construction of house thereon - 25%, Construction of house on existing plots - 10% on the Cost of Construction

Renovation / Purchase of Old House/Old Flat - If the age of the house is below 5 years - 25%, If the age of the house is above 5 years - 40%, Old Flat irrespective of age - 30%

Note :

1. In case of outright purchase, the loan amount should be sanctioned based on purchase cost, market value or Registration Value whichever is lower.

2. In the case of house construction on the pre-owned plot, the loan may be sanctioned with a margin of 10%, provided the total realizable value of the property after construction (i.e. Land and Building) is more than 133.34% of Loan Amount.

3. Margin should be brought through banking channel by direct remittance or from NRE/NRO/FCNR/NRNR a/c of applicant.

Guarantee

Guarantor if any should be Resident Indian and blood relative to applicant as per our Bank's lending policy.

Guarantee may be waived in appropriate cases by the concerned sanctioning authority based on repaying capacity of the applicant and genuineness of the case.

Repayment Period & Mode

Repayment Minimum - 5 years and Maximum - 30 years or upto the age of 65 years of borrower whichever is early.

Within a maximum of 30 Years (excluding Holiday period) in equated monthly Instalments, excepting specific cases where restrictions are specified under "Eligibility". Interest during the construction / moratorium period / holiday period may be debited and added to the principal amount, and be recovered in EMIs

Moratorium/Repayment holiday Normally, the moratorium/repayment holiday is being allowed considering the construction time of residential buildings and the schedule of implementation in case of housing project. In case, the moratorium/repayment holiday period is allowed beyond 12 months, it needs approval from next higher level authority.

Repayment mode

Under the RBI regulations, the repayment of the housing loan by NRIs can only be made by remittances from abroad through normal banking channels or through NRE/NRO account or out of rental income derived from the impugned property. The amount must be payable in Indian Rupees only.

Once the NRI borrower returns to India for permanent settlement as declared by him/her, the repayment may be permitted from local sources also.

Rate of Interest

• Loans Upto Rs. 75 Lakhs:
• Upto 15 Years Loan - BR + 0.00% (9.75% p.a.).
• Loans from 15 Years to 30 Years - BR + 0.25% (10.00% p.a.).
• Above Rs. 75 Lakhs
• Upto 15 Years Loan - BR + 0.25% (10.00% p.a.).
• Loans from 15 Years to 30 Years - BR + 0.50% (10.25% p.a.).
• In case of loans for purchase of land and construction
• a. If the construction is delayed and the delay in obtaining the approved plan is reasonable (not exceeding 24 months) from the date of disbursal of loan for plot purchase.
• b. If the construction is started within 12 months, the branch has to charge rate of interest as referred above
• c. If the construction is started after 12 months but not exceeding 24 months, BR + 4.75% (14.50% p.a.) has to be charged for the delayed period beyond 12 months.
• d. If the construction taken place after 24 months the rate of interest may be charged @ BR + 4.75% (14.50% p.a.) from (initial) original disbursement till disbursals are made for construction.
• e. If the borrower does not commence construction and closes the loan availed without any construction is being carried out, the maximum ROI @ BR + 9.00% (18.75% p.a.) should be charged from the date of first disbursement.
• Current Base Rate for Lending (BR) is 9.75% p.a.

Penal Interest

Any irregularity or default in repayment will attract penal interest of 2.00% p.a. over and above the above rate of interest on the balance outstanding.

Processing Charges

0.25% of the limit sanctioned without any maximum cap Plus taxes as applicable. No concession request will be entertained. In respect of proposals sourced under tie-up with developers or during Credit Sourcing Camps, 50% concession in processing charges is permissible.

Documentation Charges: Nil

Prepayment Charges: Nil

Documentation

1. Loan application in the prescribed format.

2. Assets and Liabilities statement of the applicant.

3. General power of attorney notarized and attested by Indian embassy/ consulate (as per annexure)

4. The POA holder should have blood relation with the Borrower and it is to be supported by relevant documents.

5. A proof of residence (lease deed copy/ driving license / utility bills etc.)

6. Copy of the passport as proof of age with visa stamp and a copy of a valid visa.

7. Copy of the Title Deeds/ Agreement to Sale if applicable

8. Approved Plan from the Appropriate Authorities.

9. Civil Engineer's Estimation

In addition to the above, the following documents are also to be obtained:

For salaried person

1. A brief write up on the company / institution where the applicant is employed.

2. Copy of the employment contract / offer letter (and an English translation of the same in case the offer letter or the employment contract is not in English).

3. Latest salary certificate (in English) or pay slips from employer specifying name, date of joining, designation & salary details, etc. Preferably it is certified by the embassy.

4. Copy of NRE A/c Statement for 2 years with our Bank or any bank where salary is credited.

5. Copy of a valid work permit / appointment letter & contract details [in English and attested by Indian Embassy] (probability of continuation of service for the tenure of loan should be assessed)

6. Copy of Identity Card issued by the Current Employer or employment verification certificate.

7. Copy of Continuous Discharge Certificate (CDC) for applicants employed in the merchant navy.

For businessmen/ professionals and others

1. Balance Sheet and Profit & Loss account for 2 years.

2. Copy of Bank account statement for 2 years (Any Bank).

EMI Payment Methods

Your South Tamilnad Mercantile Bank personal loan can be repaid in following three ways.

Standing Instruction (SI):

If you are an existing account holder with South Tamilnad Mercantile Bank, Standing Instruction is the best mode of repayment. Your EMI amount will be debited automatically at the end of the monthly cycle from the South Tamilnad Mercantile Bank account you specify.

lectronic Clearing Service (ECS):

This mode can be used if you have a non-South Tamilnad Mercantile Bank account and would like your EMIs to be debited automatically at the end of the monthly cycle from this account.

Post-Dated Cheques (PDCs):

You can submit post-dated EMI cheques from a non-South Tamilnad Mercantile Bank account at your nearest South Tamilnad Mercantile Bank Loan Centre. A fresh set of PDCs will have to be submitted in a timely manner. Please note Post Dated Cheques will be collected non-ECS locations only.It is recommended that you opt for either the SI or ECS mode of payment for faster and less prone to error than the use of PDCs.

How to Apply for South Tamilnad Mercantile Bank Home Loan?

You can either apply online or visit a nearby South Tamilnad Mercantile Bank branch for the application. You can also download the home loan application form from the South Tamilnad Mercantile Bank official website, complete the form and submit it the bank representative.

Alternatively you can also check your eligibility for a home loan through CreditMantri and apply for it.

Summary of South Tamilnad Mercantile Bank Home Loans

This is probably the only bank that provides several home loan products in India. With attractive interest rates, the bank caters to the needs of various sections of people. You can also pre-close the home loan with the prepayment for which no penalty is levied. Overall, the bank offers the best deal on home loans.

South Tamilnad Mercantile Bank Home Loan FAQs

1. What are processing fees on South Tamilnad Mercantile Bank Home Loans?

0.50% of the Limit Sanctioned without any maximum cap plus applicable tax

2. Is there penalty for prepaying the South Tamilnad Mercantile Bank Home Loan?

No penalty is levied for prepaying the South Tamilnad Mercantile Bank Home Loan?

3. Can I get South Tamilnad Mercantile Bank Home Loan without a Guarantor?

No need of a guarantor

4. What is the maximum loan repayment period for South Tamilnad Mercantile Bank home loans?

The maximum repayment period is 30 years

5. How Can I apply for an South Tamilnad Mercantile Bank home loan?

You can either apply online or visit a nearest South Tamilnad Mercantile Bank branch and take the help of the bank’s representative.