Tamilnad Mercantile Bank

Tamilnad Mercantile Bank Home Loan

Apply Tamilnad Mercantile Bank Home Loan

About Tamilnad Mercantile Bank Home Loan

Found in the year 1921, Tamilnad Mercantile Bank Ltd (TMB) was originally known as Nadar Bank and was renamed as Tamil Nadu Nadar in the year 1962. With only 4 branches in Tamil Nadu, the bank had its headquarters in Toothukudi.

TMB offers an array of products and services with continuous addition of technology-based services, which offers more choices and makes it convenient to bank with them. There are a number of retail loan products and Home Loan is one such product that has gained popularity over the years.

Tamilnad Mercantile Bank Home Loan will enable you to fulfill your dream of owning a house.  To invest in a home at one go is unimaginable as the investment is so huge. The only way you can think of owning your dream house would be by availing a Home Loan, which is affordable.

Tamilnad Mercantile Bank provides a Home Loan for the purchase of ready built house/flat or purchase of land and construction thereon. The rate of interest is very competitive and the repayment period is flexible. The loan processing is very fast as the documentation required for the loan is simple and hassle-free. The loan is sanctioned considering the past loan repayment record of the applicant and also the current income.

Why Avail Tamilnad Mercantile Bank Home Loan?

Here are some of the many reasons to apply for Tamilnad Mercantile Bank Home Loan:

  • Home Loans available to all: Indian, non-resident Indian, salaried, self-employed professional, business person, anyone can avail Home Loans from Tamilnad Mercantile Bank.
  • Higher quantum of loan: If you are looking for a high loan amount of up to 5 Crores, you must apply for a Home Loan from Tamilnad Mercantile Bank.
  • Longer tenure: The bank gives up to 30 years to the borrower to repay the loan
  • Loan for various purposes: The loan can be availed for various purposes, like construction/purchase of a new house/flat, construction of a house on an already available plot, purchase of plot and construction thereon, purchase of an old house/flat which is not over 20 years/15 years old respectively, and repairs & renovation of the existing property.
  • There is a provision of the takeover of a Home Loan from other banks at a lower rate of interest
  • The rate of interest charged is competitive
  • The processing charge levied is very nominal
  • The processing of the loan is quick and the documentation is simple and hassle-free
  • There are no hidden charges

Tamilnad Mercantile Bank Home Loan - Types and Features

Tamilnad Mercantile Bank has two types of Home Loans. Following are the features and eligibility criteria of both:

Tamilnad Mercantile Bank Home Loan

Features Details

Purpose of the loan

  • The loan is provided for the following purposes:
  • Purchase/construct a new house/flat
  • Bear the cost of extension/renovation of old house/flat.
  • Purchase an old house/flat
  • Takeover from other banks or financial institutions.

Quantum of the loan

  • The quantum of the loan depends on the location of the applicant. The maximum quantum of loan is:
  • 5 Crores in metropolitan centres
  • 3 Crores in non-metropolitan centres
  • A maximum of 25 Lakhs will be provided for repairs and renovation of the existing house.
  • 10 Lakhs for special cases, where ITR is not available.
  • Takeover: The loan amount for a takeover will be up to the actual amount outstanding with the other bank/financial institutions.
  • Top-Up Loans: Maximum 15% of the original loan amount or 15 Lakhs, whichever is lower. Top-up is offered for improvements in the existing house/flat for which the loan has already been sanctioned by the bank.

Rate of interest

8.95% p.a. to 9.20% p.a.

Margin

There are variants for the margin which are as given under:

  • 25% for the purchase of a new flat, plot purchase and construction of the house.
  • 10% for construction of a house on an already existing plot.
  • 25% for the renovation of old house/flat aged below 5 years. 40%, if the house is aged above 5 years. 30%, irrespective of the age of the old house.

Security

  • Security by way of equitable mortgage of the property construction/purchased, for which renovation/repairs proposed to be done should be available.

Guarantee

  • In case of HUF: Guarantee of male members of the HUF.
  • In case of Individuals: Spouse/father of the applicant or third party.

Repayment

Up to 30 years (excluding the moratorium/holiday period).

Tamilnad Mercantile Bank Home Loan for NRI

Features Details

Purpose of the loan

The loan is provided for the following purposes:

  • Purchase ready built new house or flat
  • Purchase a house/flat under construction
  • Purchase an old house/flat
  • Construct house on your own land
  • Purchase land to construct a house within 2 years from the land purchase date.
  • The takeover of housing loan of other banks/ financial institutions.
  • Renovation/extension/repair/furnishing of an existing house.
  • Reimbursement of investment already made by the borrower (the investment should have taken place within preceding one year).

Quantum of the loan

The quantum of the loan depends on the location of the applicant. The maximum quantum of loan is:

5 Crores in metropolitan centres

3 Crores in non-metropolitan centres

A maximum of 25 Lakhs will be provided for repairs and renovation of the existing house.

Takeover: The loan amount for a takeover will be up to the actual amount outstanding with the other bank/financial institutions.

Top-Up Loans: Maximum 15% of the original loan amount or 7.5 Lakhs, whichever is lower. Top up is allowed only after 3 years from the repayment commencement date of the original loan.

Rate of interest

9.75% p.a. to 18.75% p.a.

Margin

There are variants for the margin which are as given under:

  • 25% for the purchase of a new flat, plot purchase and construction of house.
  • 10% for construction of a house on an already existing plot.
  • 25% for the renovation or purchase of old house/flat aged below 5 years. 40%, if the house is aged above 5 years. 30%, irrespective of the age of the old house.

Security

  • Security by way of equitable mortgage of the property construction/purchased, for which renovation/repairs proposed to be done should be available.

Guarantee

  • Guarantor must be resident Indian and blood relative of the applicant as per the bank's lending policy.
  • Guarantee may not be required in cases deemed appropriate by the concerned sanctioning authority based on the borrower's repaying capacity of the applicant and genuineness of the case.
  • In the case of a loan to HUF, the guarantee of male members of the family should be available.
  • In the case of a loan to individuals, the personal guarantee of the spouse/family members should be available.

Repayment

  • Minimum repayment period is of 5 years
  • Maximum tenure is allowed for up to 30 years (excluding moratorium/holiday period) or borrower turning 65 years of age, whichever is early.

Maximum number of Housing Loan allowed

Loan up to second housing unit is allowed

Tamilnad Mercantile Bank Home Loan Interest Rates

Following are the interest rates applicable on Tamilnad Mercantile Bank Home Loans:

Tamilnad Mercantile Bank Home Loan

  • Minimum: 8.45% per annum
  • Maximum: 9.20%

Tamilnad Mercantile Bank Home Loan for NRI

  • For loans up to 75 Lakhs:
    • Up to 15 years tenure: BR + 0% = 9.75% p.a.
    • 15 to 30 years tenure: BR + 0.25% = 10% p.a.
  • For loans above 75 Lakhs:
    • Up to 15 years tenure: BR + 0.25% = 10% p.a.
    • 15 to 30 years tenure: BR + 0.50% = 10.25% p.a.
  • For loans availed for land purchase and construction:
    • If the construction starts after 12 months but not exceeding 24 months: BR + 4.75% = 14.50% p.a. for the delayed period above 12 months.
    • If the construction takes place after 24 months: BR + 4.75% = 14.50% p.a. from the initial original disbursement till disbursals made for construction. If the borrower doesn't begin construction and closes the availed loan without carrying out any construction: BR + 9% = 18.75% p.a. from the date of the first disbursement.

Tamilnad Mercantile Bank Home Loan Eligibility Criteria

Tamilnad Mercantile provides the following types of Home Loans:

TMB Home Loan

The eligibility criteria for TMB Home Loan are as given below:

  • Individuals in the age group between 18 to 50 years and HUF can avail the loan
  • In the case of the Home Loan availed jointly, any one of the borrowers should be below 50 years of age.
  • In the case of applicants who are employed in Government Departments or PSUs where the retirement age is 60, the sanctioning authority may relax the upper age limit to 55.
  • In the case of professionals like doctors, lawyers, engineers, architects, and chartered accountants, the maximum age limit can be relaxed to 60 years.
  • In the case of businessmen, the age limit may be relaxed to 60 years

TMB Home Loans for NRI

The eligibility criteria for TMB Home Loan for NRIs and PIOs are as given below:

  • The applicant should be a Non-Resident Indian (NRI) holding an Indian Passport
  • It is mandatory for the NRI holding foreign passport to intimate RBI via form IPI-7 about the purchase of the property within 90 days from the date of paying the final consideration. Documentary evidence for having reported the purchase to RBI has to be produced to the bank.
  • Person of Indian Origin (PIO) holding a foreign passport, either individually or jointly with the spouse or a close relative.
  • PIO can be a citizen of any country other than:
    • Pakistan
    • Sri Lanka
    • Afghanistan
    • China
    • Nepal
    • Iran
    • Bangladesh
    • Bhutan
  • PIO must meet the following norms:
    • The applicant at any point in time held an Indian Passport
    • By virtue of the constitution of the Indian Citizenship Act 1955, the applicant or either of their parents/grandparents was a citizen of India.
    • The applicant is the spouse of an Indian citizen or a person who at any time held an Indian Passport or the spouse of a person who was an Indian citizen by virtue of the constitution of the Indian Citizenship Act 1955.
  • Age criteria for NRIs and PIOs:
    • The age of the NRI/PIO applicants or co-applicants for a joint application should be between 21 years and 50 years.
    • If the loan is availed jointly, any of the applicants should be below 50 years of age
    • The last instalment of the loan should not go beyond the age of 65 years
    • In the case of professionals like chartered accountants, doctors, engineers, lawyers, business owners, the upper age limit is capped at 55 years.
  • Conditions for salaried employees staying abroad:
    • The applicant should have been staying abroad for a minimum of 2 years
    • The applicant should have completed at least 6 months of job abroad out of the job contract (that should be a minimum of 2 years).
    • The applicant should be working abroad on an assignment with Government agencies or International/Regional Agencies like UNO, IMF, World Bank, etc/foreign governments.
    • Employees of Central/State Government Departments or Public Sector Undertakings who are deputed abroad on temporary assignments or posted to their offices abroad, which include Indian Diplomatic Missions are also eligible for the loan under this scheme.
  • Conditions for self-employed applicants staying abroad:
    • A minimum stay of 3 years abroad is mandatory for applicants who are self-employed or businessmen.
    • The applicant is entitled to a maximum loan for 2 housing units under this scheme

Documents Required for Tamilnad Mercantile Bank Home Loan

Documents required for TMB Home Loan

  • Documents for loan application
    • Application for the Home Loan in the prescribed format
    • Proof of Income: ITR/ Salary Certificate/ Balance Sheet/ Others
    • Residence proof: Lease deed copy/ driving license/ utility bills, etc.
    • Estimation by Civil Engineer
    • Copy of property's Title Deed, if applicable
    • Approved Plan, if applicable
    • Letter from Guarantor, if applicable
  • Documents for the purchase of old house/flat
    • House/flat should be constructed under 20 years and its residual life should be 15 years or above. The residual life of the property must be certified by the bank's Approved Engineer and its valuation should be made by the bank's Approved Engineer and Branch Manager.
  • Documents for the takeover from other banks/ financial institutions
    • The loan amount should not exceed the actual outstanding amount with the other banks/ financial institutions. The borrower must obtain the evidence from other banks/ financial institutions that it is a regular account. Repayment tenure should be the remaining period with the other banks/ financial institutions. If the customer wants longer repayment tenure than the remaining repayment, it may be considered if the repayment falls with the remaining life of the house/flat. A remaining life certificate should be obtained from the bank's Approved Engineer.

Documents required for TMB Home Loan for NRI

  • Common documents
    • Application for the Home Loan in the prescribed format
    • Assets & liabilities statement of the applicant
    • General power of attorney notarised & attested by the Indian embassy/consulate as per annexure.
    • The POA holder should be the blood relative of the borrower. It is to be supported by relevant documents.
    • Residence proof: Lease deed copy/ driving license/ utility bills, etc.
    • Passport's copy as age proof with visa stamp along with a copy of a valid visa
    • Copy of the Title Deeds or Agreement to Sale, if applicable
    • Approved Plan by the Appropriate Authorities
    • Estimation by Civil Engineer
  • Additional documents for salaried applicants
    • A brief write-up about the company or institution where the applicant is employed
    • Copy of the offer letter/ employment contract and its English translation if the offer letter or the employment contract is in other language than English.
    • Latest salary certificate (in English)/ pay slips from current employer specifying the name, joining date, designation, salary details, etc., certified by the embassy.
    • Copy of NRE Account Statement for 2 years with Tamilnad Mercantile Bank or any other bank where the applicant's salary is credited.
    • Copy of a valid work permit or appointment letter and contract details (in English), attested by the Indian Embassy. The probability of service continuation for the loan tenure should be assessed.
    • Copy of ID Card issued by the Current Employer/ employment verification certificate
    • Copy of CDC (Continuous Discharge Certificate) for applicants who are employed in the merchant navy.
  • Additional documents for business owners/ professionals/ others
    • Profit & Loss account and Balance Sheet for 2 years
    • Copy of bank account statement of any bank for 2 years

Why Apply for Tamilnad Mercantile Bank Home Loan through MyMoneyMantra?

You should apply for the loan through MyMoneyMantra for the following reasons:

  • The data from different banks and financial institutions have been collected and collated on a single screen on MyMoneyMantra. This makes it easy to compare the interest rates of different banks and also other offers to get the best deal.
  • Our experienced loan representatives will guide you through the whole process and help you choose the loan best suited for you.
  • They collect all the required documents and guide you through the loan terms and will handover the documents to the respective bank/financial institution.
  • They will take care of the documentation process and will help you with the loan approval and disbursal process.

How to Apply for Tamilnad Mercantile Bank Home Loan through MyMoneyMantra?

Follow the steps as given below to apply for the loan online using MyMoneyMantra's platform:

  • Access the official website of MyMoneyMantra
  • Specify your gender and proceed further
  • The city of residence has to be chosen
  • Select the purpose of the loan. It could be the purchase of flat/house or the purchase of plot and construction thereon, or construction of the house on an already existing plot, or home extension loan.
  • Choose the city where you intend to purchase the property
  • The market value of the property has to be entered
  • Provide details of your employment
  • Give details of your income
  • Provide a few personal details required
  • Enter your email address and phone number
  • Accept the conditions and proceed further
  • An OTP will be sent to your mobile number by MyMoneyMantra
  • Enter the OTP

After the completion of the above process, representatives of MyMoneyMantra will contact you and assist you with the application process.

Other Products Offered by Tamilnad Mercantile Bank

Details of other products offered by Tamilnad Mercantile Bank are as given below:

Demat and other financial services

  • Bill Payment Services
  • RTGS, ECS, and NEFT Service
  • Anywhere, Anytime Banking Facility
  • Demat Account Services
  • Mobile SMS Banking
  • Western Union Money Transfer
  • Mutual Fund Marketing
  • Citizen's Charter
  • NCDEX Clearing

Deposit Schemes

  • Navarathnamala
  • Savings bank Account
  • Fixed Deposit
  • SB Premium Account
  • Current Account
  • Classic Salary SB Account
  • Muthukkuvial Deposit
  • Janatha Savings Account
  • Siranjeevee R Deposit
  • Pearl Deposit
  • Cash Certificate
  • Santhosh Deposit
  • TMB Double Deposit
  • Tax Saving Deposit

Retail Loans

  • Personal Loan
  • Two Wheeler Loan
  • Car Loan
  • Education Loan
  • Short Term Study Loan
  • Doctor Loan
  • Pension Loan
  • House Rent Loan
  • Skill Development Loan
  • Gold Overdraft
  • IPO Finance Loan

Credit Cards

  • TMB Titanium Credit Card (Secured)
  • TMB Titanium Credit Card (Unsecured)
  • TMB Platinum Credit Card
  • TMB India Credit Card
  • TMB General Credit Card

NRI Accounts

  • NRE Regular Account
  • NRE Premium Account
  • FCNR Plus Account
  • FCNR B Account
  • NRO Account
  • RFC Account
  • Travel Cards
  • Western Union Money Transfer
  • Express Money Service
  • GCC Exchange
  • Remit2India
  • Forex Analysis Report
  • Outward and Inward Foreign remittances
  • Export and Import Services
  • NRI Home Loan

How to Calculate the Tamilnad Mercantile Bank Home Loan EMI?

MyMoneyMantra provides you financial tools to help you choose the best housing loan deal. EMI Calculator is one such tool, using which you can check the exact equated monthly instalment (EMI) amount that you are required to pay against the loan to be availed. Enter the details such as loan amount, rate of interest, and tenure on the EMI Calculator, and hit the 'Calculate' button to get your EMI instantly.

Tamilnad Mercantile Bank Home Loan - Processing Fee & Other Charges

Apart from interest, the following charges will be collected by TMB towards the housing loan:

Processing charges

  • TMB Home Loan: 0.50% of the loan amount + applicable taxes.
  • TMB Home Loan for NRI: 0.25% of the loan amount + applicable taxes. For proposals sourced during Credit Sourcing Camps or under tie-up with developers, 50% concession will be provided in processing charges.

Penal interest for irregularity or default in repayment

2% p.a. over and above the above rate of interest on the balance outstanding.

Documentation Charges

NIL

Prepayment Charges

NIL

Tamilnad Mercantile Bank - Customer Care

In the case of any query regarding Home Loans, the following customer care numbers can be contacted.

All India National Toll-Free Number: 180 0425 0426

TMB Customer Care Number: +91 9842 461 461

You can also email at: customerservice@tmbank.in

NRI Help Desk email: nricell@tmbank.in

OR

You can walk in to the below contact address of their Registered & Administrative Office:

Tamilnad Mercantile Bank Limited

(A Scheduled Commercial Bank and Authorized Dealers in Foreign Exchange)

57, V.E. Road, Tuticorin, Tamilnadu, India

Zip: 628 002.

Phone: +91 (461) 232 1382/ 232 1929/ 232 1932

Tamilnad Mercantile Bank Home Loan - FAQs

Is there any tax benefit available for TMB Home Loan?

A tax deduction can be claimed under 80C and 80CCE up to 1.5 Lakhs on the principal and 2 Lakhs on the interest component paid towards the Home Loan.

What is the basis for arriving at the eligible loan amount for TMB Home Loan?

If the loan is for the purchase of a house/flat, the quantum of loan is based on the purchase price, market value of the property or the registration value, whichever is lower. If the loan is for construction of the house on an already existing plot, then 90% of the project cost will be provided, whereas if it is for the purchase of a plot and construction of a house thereon, 75% of the project cost will be provided. Along with the above, the repayment capacity also will be considered to arrive at the eligible loan amount.

What is the net take-home salary stipulated after providing for the EMI of the proposed loan?

The net take-home salary should be 50% of the gross salary after providing for the EMI for the proposed loan.

What is the quantum of the loan provided?

The quantum of loan is up to 5 Crores in metropolitan cities and 3 Crores in non-metropolitan cities. The maximum quantum for repairs/renovations is 25 Lakhs.

Is there top-up loan facility for TMB Home Loan?

A top-up loan up to 15% of the original loan will be provided for home decoration with a maximum of 15 Lakhs for TMB Home Loan to resident Indians and 7.5 lakhs for TMB Home Loan for NRIs. This will be provided after 3 years from the date of the first disbursement provided the track record of the original loan is satisfactory.

What is the processing fee stipulated for TMB Home Loan?

Processing fee at 0.50% of the loan amount for TMB Home Loan for resident Indians and 0.25% of the loan amount for TMB Home Loan for NRIs will be collected.

What is the moratorium period for TMB NRI Home Loan?

The moratorium period for repayment of TMB NRI Home Loan is 12 months.

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