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Eligibility Criteria for TMB Personal Loans
Tamilnad Mercantile Bank has set specific eligibility for its personal loans to ensure that a maximum number of applicants can get the benefit of the same. The eligibility criteria of the personal loan include the age of the applicant, income of the applicant, credit score, etc.
The details of the eligibility of the personal loans of the bank are specified hereunder.
Category | TMB Personal Loan |
Purpose | Personal use |
Eligible applicants | Permanent or confirmed employees of any of the following organizations,
|
Age | Minimum age – 21 years Maximum age – 54 years |
Credit score | Minimum credit score - 740 -1 to 5 in case of no credit history |
Minimum Income | As per Banks guidelines |
Overview of Personal Loans from TMB
Tamilnad Mercantile Bank is almost a century-year-old bank in India. The bank has grown rapidly over the years to emerge as a leading private sector bank in the country. The bank provides personal banking, corporate banking, NRI banking, Demat services and much more. Lending being the primary function of any bank, the loans of the banks are priced to be available at affordable rates and for flexible repayment tenures.
Personal loans among these loan products provide easy loans for eligible applicants to ensure that they can meet their personal needs immediately. Personal loans are the easiest loans that can be available to the borrowers of the bank. These loans are provided for meeting the immediate personal expense of the applicant. Some examples of such personal expenses are mentioned below,
- Purchasing consumer durable
- Household articles
- Marriage expenses
- Travel expenses
- Other family expenses
What are the documents needed for the personal loans of TMB?
The documents needed for TMB personal loans are the KYC documents that are needed to verify the identity proof and the address proof of the applicant. The other related documents are the income proof documents and the duly filled application form.
The detailed list of the documents needed for personal loans is mentioned below.
Identity Proof
Any of the following documents can be submitted as identity proof,
- Passport
- Aadhaar Card/ UIDAI Letter
- Voter ID
- Driving License
- Photo PAN Card
Address Proof
The applicant can submit any of the following documents as address proof
- Passport
- Driving License
- Job Card issued by NREGA (duly signed by State Government Officer)
- Voter ID
- Aadhaar Card/ UIDAI Letter
Age Proof
Along with identity proof, age proof is also required. The applicant can submit any of the following documents,
- Birth Certificate
- PAN Card
- Aadhaar Card/ UIDAI Letter
- Voter ID
- Passport
Signature Proof
The applicant can submit any of the following documents as signature proof
- Passport
- Driving License
- Pan card
- Banker’s Certificate
Income Proof
Income proof is part of every loan application. The documents to be submitted for income proof of the salaried applicant are,
- Latest 3 months bank statement
- Latest salary slip
What are the highlights of the TMB personal loans?
The features of the TMB personal loans provide the borrowers with immediate financial assistance and ensure that the borrowers get flexible repayment options to repay the loan borrowed in easy instalments. The various features of the personal loans of the bank are mentioned below.
Amount of loan
The amount of loan that can be sanctioned to eligible borrowers as personal loans is tabled below
Condition | Amount of loan |
When the employer deducts the instalment and remits it to the bank | Lower of,
|
When the employer remits the loan instalment directly to the bank | Lower of,
|
Rate of interest
The rate of interest for TMB personal loans is dependent on many factors like the credit scores of the applicant, loan amount, tenure of the loan, relationship with the bank, etc. the current rate of interest for TMB personal loan starts from 14.05%.
Tenure
The tenure for the personal loans of the bank provides the borrowers with a repayment period of 60 months (5 years). This tenure can be extended for a further period at the discretion of the bank.
Processing fees
The processing fees for the TMB personal loans are very nominal. These charges are calculated as a percentage of the loan. The current processing fees for TMB personal loans are 1% of the loan amount (excluding taxes)
Margin
The bank does not require the borrowers to provide any margin for the loan amount as per the guidelines for personal loans.
Security
The bank has the lien over Salary, Bonus and other emoluments as security needed for TMB personal loans.
Guarantee
Borrowers need to provide a third party guarantee for personal loans in some cases based on the discretion of the bank. Apart from this, the bank also has the primary hypothecation charge on the assets purchased from the loan.
What are the factors responsible for TMB personal loan eligibility?
The factors responsible for the TMB personal loans eligibility are multifold and ensure a wide spectrum of applicants can apply for the personal loans of the bank. Some examples of the factors influencing loan eligibility are mentioned below.
Age of the applicant
One of the prime factors of eligibility is the age restrictions for the applicant laid down by the bank. These restrictions ensure that the loan is not sanctioned in the name of a minor or a senior citizen without any source of income to safeguard the interest of the bank.
Relationship with the bank
Many lenders require the applicant to have a minimum existing relationship with the bank to be eligible for its personal loans. This provides the bank with the financial history of such applicant to ensure the viability of the loan. The bank may also provide a lien on the account in case of default on the loan provided it is allowed as per the guidelines of the bank and is agreed between the borrower and the lender.
The income of the applicant
The income of the applicant is essential to determine the repayment capacity of the applicant. This assures the bank of the viability of the loan and reduces the risk of non-performing assets.
Expenses of the applicant
Existing expenses being huge may dampen the chances of getting a personal loan for any applicant. This reduces the repayment capacity of the applicant and may disqualify them for any additional liability.
External liabilities
When a person already has huge external liabilities (for example home loan), the eligibility of the applicant may be lowered for any further loan. Lenders may not sanction a further loan if the repayment capacity is not sufficient.
The credit score of the applicant
The credit score of the applicant is a crucial factor in determining the eligibility of a person for a personal loan. A person having a good credit score is a low-risk candidate and vice versa. It is also essential in determining the rate of interest, loan tenure or loan amount, etc.
Loan amount
If the loan amount required by the applicant is more than the amount that can be sanctioned based on other factors of eligibility of such person, it becomes a crucial factor for deterring eligibility or sanction of loan. In such cases, banks may reject the loan or may grant the loan at a lower amount.
FAQs - Tamilnad Mercantile Bank – Personal Loan Eligibility
1. What is the current interest rate for personal loans at TMB?
A. The current eligible interest rate for TMB personal loans starts from 14.05%.
2. What are the inputs needed for the personal loan eligibility calculator?
A. The inputs needed for personal loan eligibility are the age of the applicant, income of the applicant, monthly expenses of the applicant, loan amount, tenure, rate of interest and any external liability (if any).
3. Can a self-employed person apply for TMB Personal Loans?
A. No. the TMB personal loans can be applied and sanctioned only to permanent or confirmed employees of specified organizations.
4. Can a pensioner apply for a personal loan at TMB?
A. No. Pensioners can apply for an overdraft facility under the scheme TMB pensioner. It is eligible for persons receiving their pension in any branch of the bank.
5. Can a person over 60 years of age be eligible for personal loans from TMB?
A. No. A person beyond the age of 54 years is not eligible for personal loans of the bank under TMB Personal Loans.
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