Tamilnad Mercantile Bank Personal Loan

Tamilnad Mercantile Bank(TMB)

Tamilnad Mercantile Bank, formerly known as the Nader Bank Limited was established and registered in 1921. Today the Tamilnad Mercantile bank operates through a network of around 1031 ATMs, 488 branches all over the country with 10 regional offices, 11 extension counters, 6 central processing centers, 1 service branch and 4 currency chests. The bank is operationally highly versatile working with multiple banking products which includes personal, corporate and international services.

What is a personal loan?

A personal loan is an unsecured (i.e. without collateral), multi-purpose loan usually taken to cover short-term money requirements. Personal loans usually have a speedy approval process hence making it one of the most popular loans in the market.

Tamilnad Mercantile Bank Personal loan

The Tamilnad Mercantile Bank offers its customers an attractive Personal Loan at competitive interest rates which will help them to satisfy their financial needs without any hassles. The loan has many notable features and comes at a competitive rate of interest. Let us discuss the loan in detail:

Key Highlights

Features & Eligibility

• The personal loan offered by Tamilnad Mercantile bank is a multipurpose loan which can be used to satisfy the customers financial needs, including but not limited to marriage of a child, business expenses, going on a vacation, buying household articles, buying consumer durable goods, meeting any emergency expenditure, etc.
• The loan is available to salaried employees employed in a permanent position in the services of Government departments, corporate organizations, business houses, educational institutions, etc.

Age limit:

The age of the applicant should be lower than 54 years on the date of application

Loan amount –

Depends on the method of repaymentIf the employer undertakes to deduct the loan instalments every month from the applicant’s salary account maintained with the bank and remit the same to the bank for repayment of the loan, the loan amount that will be granted would be equivalent to 6 times of the gross salary as per the latest salary bill subject to a maximum amount of Rs.2 lakhs

if the borrower repays the instalment from any other account other than a salary account and the employer does not undertake the deduction of the monthly salary 6 times the gross salary would be allowed as loan subject to a maximum limit of Rs.1 lakh.

Security

Lien over Salary, Bonus and other emoluments.

Primary: Hypothecation of assets created out of the loan proceeds in case loan is sanctioned for purchasing Consumer Durables / House-hold articles. Suitable third-party guarantee to be obtained, if necessary.

Collateral

Obtention of collateral security need not be a prerequisite.

Guarantee

If the employer does not undertake to deduct and remit the instalment or the instalment is not deducted from the salary account maintained by the branch, suitable guarantee from two worthy persons should be obtained.

Pre-requisite

• Proof of income and certificate from the employer for the Take Home Salary
• Undertaking from the employer to deduct and remit the instalment amount from the salary of the staff every month when the employer is agreeable for the same

Tenure

• Maximum tenure is 60 months or 5 years with the loan to be repaid in 60 Equated Monthly Instalments(EMI)
• Note: The tenure may vary based on the employee’s salary and his remaining years of service. The loan will be expected to be repaid with in the active years of service.

Rate of Interest

Tamilnad Mercantile Bank Base Rate (For existing borrowers)

The current base rate at TMB stands at 10.40% per annum, effective from October 15, 2015. This rate acts as a benchmark to determine the final interest for various products, with TMB typically modifying it to meet current situations.

Tamilnad Mercantile Bank personal loan interest rate

Customers who availed a loan before new RBI guidelines were enforced can continue with their old/current interest payment mode, which takes the base rate into consideration. The interest payable depends on many factors, including the repayment conditions, financial status of borrower, security provided, etc. The table below details the rate of interest in various scenarios

If the borrower is unable to pay the monthly instalments on the due date, a penal interest would be charged for the default. The interest levied would be 2% higher than the rate of loan interest chargeable and would be charged on the outstanding balance of the loan.

Processing Fees

1% of the amount of loan sanctioned would have to be paid as a processing fee to the bank

Documentation

The following documents are required to apply for the personal loan from Tamilnad Mercantile Bank

• Application Form
• Proof of Income and a Certificate from the Employer stating the take-home salary of the borrower
• Quotations wherever they are necessary
• Undertaking from the employer to deduct the loan instalment from the borrower’s salary or undertaking from the employer to deduct the loan instalment from the borrower’s salary account
• Any required guarantee consent letter from the third party
• Undertaking form, the employer that the applicant would not be relieved from service under the regulations of the VRS scheme before taking due consent from the bank

Why Tamilnad Mercantile bank:

Flexible Personal Loan Tenure:

With the advantage to pay your loans spread equally across several months you really don’t have to worry about your monthly financial management after taking the loan. Tamilnad Mercantile Bank Personal Loan assures you just that. The maximum loan repayment tenure is up to 60 months or 5 years.

Flexible Loan Amount:

You can borrow any sum of money, up to Rs. 1 lakh, allowing you to satisfy your small financial requirements with ease. If you have a salary account with Tamilnad Mercantile bank, and paying directly through your salary account, you have the additional advantage of getting an amount of up to Rs. 2 lakhs.

Attractive Rate of Interest:

Rate of interest for repayment of your Tamilnad Mercantile Bank Personal Loan is starting at 14.60%, making it convenient on your budgets in the long run.

Eligibility Advantage:

It is easy to get a Tamilnad Mercantile Bank Personal Loan as long as you fall under very simple criteria that most salaried individuals can afford. With maximum age limit at 54 years and minimum at 21 years of age working in the Government or in any reputed company.

Pension Loan 

The TMB’s pensioners plan is an answer to the immediate money requirement of the elderly individuals by offering them urgent cash whenever required by them. The main aspect of this plan is that it anticipates the future pension receipts of the elderly pensioners getting regular monthly pensions and releases the loans immediately. The features of Tamilnad Mercantile banks pension loans are as follows:

• The main objective of this scheme is to provide urgent cash to pensioners getting who are getting monthly pensions in order to meet their monetary needs like paying electricity bill, telephone bill, medical expenditures, educational expenses, water charges, other family expenditures etc.
• Any individual who was an employee of Central Government, State Government, Banks, Public Sector Institutions etc. and who acquires their regular monthly through the TMB branches are eligible to apply for this type of loan scheme.
• This loan plan is in the form of Overdraft in Savings Bank Account. But again, the limit on the overdraft should only be allowed at the TMB branch where the total amount of the pension is being credited.
• The total measure of this loan plan equals to 95% of the amount of pension of a single month after lessening other charges of repayments if there are any for the current loans and advances offered to the person applying for the loan.
• The total margin on this loan plan is 5%.
• Security or collateral to the bank in order to apply for this loan plan is not required
• The rate of interest for this loan depends on the Base Rate (BR). The present Base Rate for lending is 10.40% per annum and the rate of interest becomes BR+3.75% which adds up to a total of 14.15% per annum.
• If the pensioner fails to repay the loan on a timely basis or is unable to repay the loan at all before the due date, he/she becomes liable to pay a nominal penal interest of 2.00% per annum that is over and beyond the rate of interest on the remaining amount left on the loan
• When the investor applies for this loan scheme, he/she is supposed to pay a nominal charge in the form of processing fee. That charge comes up to 1.00% of the limit on amount offered by the bank and this processing fee has no maximum limit based on the loan amount. It may vary with different loan amount
• Simple Documentation. Undertaking letter will be obtained that the borrower will not change the authorization given to the employer to credit the pension to Tamilnad Mercantile Bank Limited during the tenure of the overdraft limit.

Tamilnad Mercantile Bank Personal Loans Overview

Tamilnad Mercantile Bank provides attractive interest rates on personal loans when compared to other lenders. The processing fee is 1% of the loan amount which is among the lowest fees in the industry. Moreover, the processing fee is waived off for pensioners. Low interest rate with no hidden charges makes Tamilnad Mercantile Bank personal loans a prospective and viable option for borrowing for your urgent financial requirements. With long tenure and part-prepayment, Tamilnad Mercantile Bank personal loans do not impose much burden on the customers.

Tamilnad Mercantile Bank Personal Loan FAQs