About Tamilnad Mercantile Bank Loan Against Property
Tamilnadu Mercantile Bank was popular as Nadar Bank Limited till 1962 when the name of the bank was changed from Nadar Bank Limited to Tamilnadu Mercantile Bank to gain popularity beyond the Nadar Community. Nadar Bank Limited was established in the year 1921. The bank had branches only within Tamilnadu until 1976 when a branch was opened in Bangalore. The head office of the bank is in Toothukudi.
Tamilnadu Mercantile Bank adopted technology in banking operations as early as 1983 and became the first private bank to introduce computerization for branch-level operations in the year 1984. It has provided several payment gateways to its customers who have availed the internet banking facilities.
Even in the lending sector the bank has been very active and caters to retail, corporate as well as MSME Sectors. The bank has devised several popular products to suit all these sectors and the Easy Mortgage Loan i.e., Loan Against Property is one such popular product due to its distinctive features.
Eligibility for Tamilnadu Mercantile Bank Loan Against Property
The eligibility criteria for the Tamilnadu Mercantile Bank Loan Against Property is as mentioned below:
- The applicant should own either a commercial or residential property.
- The loan can be availed either individually or jointly.
- Sole Proprietorship Firms/Partnership Firms are eligible for the loan.
- Stockbrokers, Private Banks, NBFCs, Money Lenders and Chit Fund Companies are not eligible for the loan.
- For loans under house rent loan, the residential or commercial property should be rented to reputed Corporates/MNCs/Banks.
Rate of interest and other charges for Tamilnadu Mercantile Bank Loan Against Property
The rate of interest for Easy Mortgage Loan is 12.10% p.a. and for TMB. The rate of interest for House Rent Loan ranges between 12.80% to 14.10% p.a.
Processing charges: 1% of the loan amount for Easy Mortgage Loan availed as a term loan and 0.50% of the loan amount for Easy Mortgage Loan availed as an overdraft facility. There is no maximum cap on the processing charges.
For House Rent Loan the processing charges will be 1% of the loan amount without a maximum cap.
Penal charges: Penal charges for non-payment or delayed payment of EMI will be collected at 2% over and above the normal rate of interest on the outstanding loan amount for the overdue period.
For all other charges, you can contact the nearest branch of the bank or call the customer care helpline.
Processing charges and Security for the Tamilnadu Mercantile Bank Loan Against Property
Processing charges are collected at 1% of the loan amount for Easy Mortgage Loan availed as a term loan and for House Rent Loan without a maximum cap. For Easy Mortgage Loan availed as an overdraft facility, the processing charges will be at 1% of the loan amount without a maximum cap.
Mortgage of the property against which the loan is provided. The value of the property should be up to 200% of the loan amount sanctioned in the case of the Easy Mortgage Loan and up to 150% of the loan amount sanctioned in the case of House Rent Loan.
Agricultural land is not accepted as security. A loan will not be provided against third-party security. The property in the name of family members will be accepted as security and the personal guarantee of the property owner has to be provided.
The mortgage of the property should be registered under the Memorandum of Title Deeds under the stamp act of the respective State. In States where MODTD is not possible, the mortgage should be by way of registered mortgage.
If the property is in the name of the Partnership Firm/Private Limited Company, the personal guarantee of all the Partners/Directors as the case may be should be provided.
For House Rent Loan, in addition to an equitable mortgage of the property, the rent should be assigned in favour of the bank. If the lessee is agreeable to depositing the rent directly into the loan account, a power of attorney in favour of the bank has to be provided by the lessor and lessee.
Types of Tamilnadu Mercantile Bank Loan Against Property
There are two types of loans under the Tamilnadu Mercantile Bank Loan Against Property Scheme:
- Easy Mortgage Loan
- House Rent Loan
Features of Tamilnadu Mercantile Bank Loan Against Property
|Name of the product||Purpose||Quantum||Interest||Security||Repayment||Charges|
Easy Mortgage Loan
The loan can be used for any productive purposes like the expansion of business, the purchase of commercial property for business purposes, renovation and repairs of the existing property, building infrastructure, etc.
The loan quantum will be up to 50% of the distress value of the property with a maximum of 50.00 lakhs.
The loan can be availed either as a term loan or as an overdraft facility or a combination of both.
The rate of interest will be 12.10% p.a.
Security will be by way of mortgage of the property against which the loan is granted.
Mortgage by way of registration of the memorandum of titles under the Stamp Act of the respective State should be done.
Where MODTD is not possible, a registered mortgage should be insisted.
If the property is in the name of the business entity, the personal guarantee of all the partners in case of a Partnership Firm and the personal guarantee of all the Directors in the case of a Private Limited Company should be available. A guarantee consent letter has to be obtained if required.
A loan will be not granted against agricultural land or third-party property. Property in the name of a close family member will be accepted provided the personal guarantee of the owner of the property is available.
The maximum repayment period for a term loan is 5 years and the maximum repayment period for an OD facility is 1 year.
At 1% of the loan amount for a term loan and at 0.50% of the sanctioned limit for an overdraft facility.
No maximum cap for the processing charges.
House Rent Loan
The loan can be utilized for any business- related purposes but not for speculative purposes.
The loan quantum will be 50% of the future rent receivables for a period of 84 months or the residual lease period whichever is less minus the TDS with a maximum of 50.00 lakhs. The margin will be increased based on the rate of interest prevailing at the time of applying for the loan so that the EMI for the loan amount should not exceed 90% of the rent receivables.
The rate of interest ranges from 12.80% to 14.10% p.a.
Equitable mortgage of the property that is leased out. The value of the property should be at least 150% of the loan amount.
The rent receivables should be assigned in favour of the bank. If the lessee is agreeable to depositing the rent to the loan account, the power of attorney in favour of the bank has to be given by the lessee and the lessor.
The maximum repayment period is 60 months or the residual lease period whichever is earlier.
At 1% of the loan amount with no cap on the maximum.
Advantage of taking Tamilnadu Mercantile Bank Loan Against Property
The following are the advantages of availing the Tamilnadu Mercantile Bank Loan Against Property:
- The loan is granted against residential as well as commercial property. A loan is also granted against third-party property only when the property is in the name of close family members subject to the availability of the personal guarantee of the owner/s.
- The rate of interest is competitive and is calculated on reducing balance.
- The turnaround time is quick.
- The loan can be any business-related purpose.
- Flexible repayment period up to 5 years.
- In the case of House Rent Loan, provision for an increase in margin is available depending on the prevailing rate of interest provided the EMI does not exceed 90% of the rent receivables.
- No post loan hassles.
- The loan can be availed either individually or in joint names.
Documents required for the Tamilnadu Mercantile Co-operative Bank Loan Against Property
The following documents have to be submitted along with the application for a loan against property and two passport size photographs of the applicant and the co-applicants.
- Voter's ID Card
- Aadhar Card
- Driving Licence
- Utility Bills
Photo ID Proof
- Pan Card
- Voter's ID Card
- Driving Licence
- Audited Balance Sheet and P & L Account for the last 3 years.
- ITwith computation of income for the last 3 years.
- Business profile on the letterhead.
- Bank account statement of the primary account for the last 12 months.
- Statement of loan accounts for the last 12 months.
- Partnership Deed in the case of Partnership Firms.
- Memorandum of Association and Articles of Association in the case of Private Limited Company.
- GST Registration Certificate.
Copy of all the title deeds ensuring the marketable title of the property against which the loan is sanctioned.
Why apply for Tamilnadu Mercantile Bank Loan Against Property through MyMoneyMantra?
The reasoning can be many for applying for a loan through MyMoneyMantra. But the main reason is their immense experience in the field during which they have partnered with several financial institutions to provide an array of choices to their customers. The assistance that is provided is an advantage since it will reduce the time consumed for loan processing and will help you clear all your doubts during the process.
The most strenuous aspect of the loan availing process is the comparison of rates and offers available in the market. There are so many loan providers in the market that it becomes difficult to reach out to each and every deal. And choosing the best out of the lot that suits your pocket is yet another cumbersome task. You will have to pick each and every deal and do the EMI calculation to check if it is comfortable on your monthly budget.
But going through the above ordeal is very much essential since the loan against property is a big-ticket loan and even a minute difference in the rates will mark a considerable difference in the cost of the loan since the repayment is long-term. Also, managing the EMI within the budget is also crucial since you will have to be able to make prompt repayment for a long time. Missing out on EMIs will not only be penalised but consistent miss outs can land you in a terrible crisis wherein there are chances of even losing your property.
By applying for the loan through MyMoneyMantra you will find the entire process simple and hassle-free since most of the hard work is done by the loan experts of the MyMoneyMantra team. The rates and offers of various financial institutions are available on a single screen on the home page of the website. This makes things easier. Also, the loan experts will assist you to choose the best deal depending on your income and repayment capacity. The EMI calculator available on the website will enable EMI calculation several times until you arrive at a value that is easy on your pocket.
With the EMI value and the choice of loan provider ready, you can proceed to apply for the loan. The team will collect the documents required from your doorstep and will also coordinate with the loan providers for quick approval and disbursement of the loan. They will also help you with the documentation and will help you understand the fine lines under the terms and conditions of the loan document. With the immense support from the team, you can wade through the loan availing process with much ease.
How to use the MyMoneyMantra Loan Against Property EMI Calculator?
MyMoneyMantra Loan Against Property EMI calculator is a user-friendly tool designed for simple calculation of the EMI. EMI the equated monthly instalment that you have to pay your loan provider month on month will be serviced regularly only if it is within your monthly budget. If the added expense exceeds the limit of your monthly budget, you will land up in serious trouble.
But then how do you decide the EMI that is comfortable. A bit of working around your monthly budget is required for that. You will have to consolidate all your commitments including the statutory payments, monthly expenses for sustenance and the existing debt payments. The amount that remains after providing for all that will be the one at your disposal to accommodate the proposed commitment. But even here, you should consider some reserve amount for any other expenses that arise during the repayment tenure of the proposed loan. After all these adjustments are made you will arrive at the amount available for the proposed EMI. Once this is ready you should work around that amount and arrive at a loan amount. With the loan amount that the EMI can fetch you will be able to decide whether it is adequate for the purpose for which you are availing a loan. If it is not, then there would be no point in just burdening yourself with an extra debt.
You can use the MyMoneyMantra EMI Calculator to calculate the EMI by providing the loan amount, loan tenure and the rate of interest. The advantage of using the MyMoneyMantra EMI calculator is that you will also be able to access the list of best quotes with the help of which you can try various combinations till you arrive at a deal that accommodates the desired EMI.
To use the MyMoneyMantra calculator you will have to follow the steps give below:
- Access the MyMoneyMantra website.
- Choose the EMI calculator under the financial tools tab.
- Provide the loan amount, loan tenure and the rate of interest.
- The EMI will be calculated instantly.
- Try different combinations until you arrive at the desired EMI.
- You can then apply for the loan through MyMoneyMantra.
Why use Loan Against Property EMI Calculator?
As discussed above it is essential to calculate the EMI before applying for a loan. What is the easiest way to calculate the EMI? You can either do the calculation manually by applying the formula. If it is a one-time calculation you could still do the calculation manually. But while you are arriving at a suitable EMI you will have to try various combinations and so the calculation has to be done several times. In such a case doing the calculation with the EMI calculator is the best since you get a 100% accurate result within minutes.
Another advantage is that you can access the EMI calculator online at anytime and from anywhere. The calculation will help you manage the monthly budget in such a way that you will not face any financial crunch in the future owing to this additional commitment.
Who can apply for the Tamilnadu Mercantile Bank Loan Against Property?
To apply for the Tamilnadu Mercantile Bank Loan Against Property the applicant should own a commercial or residential property. Property in the name of close family members is also accepted as security for the loan provided the personal guarantee of the owner is available.
The property can either be self-occupied or leased out. A loan will be granted in the form of House Rent Loan on the rent receivables of the leased-out property.
The loan can be availed by Proprietorship/Partnership Firms.
Agricultural lands are not eligible for the loan.
For a loan under House Rent Loan, the property should be leased out to Corporates/MNCs/Banks.
What is the security required for the Tamilnadu Mercantile Bank Loan Against Property?
The security for the Tamilnadu Mercantile Bank Loan Against Property is by way of mortgage of either residential or commercial property. The property can either be self-occupied or rented out. Properties belonging to third-party are not accepted as security. But the properties in the name of close family members are eligible for the loan.
The mortgage should be by way of a registered Memorandum of title deeds under the Stamp Act of the respective state. Wherever the MODTD is not possible, the mortgage should be by way of a registered mortgage.
If the property is in the name of the Partnership Firm, the personal guarantee of all the partners should be available and if the property is in the name of the Private Limited Company, the personal guarantee of all the Directors should be available. If the property is owned by close family members the personal guarantee of owner/s should be available.
For a loan under House Rent Loan besides the mortgage, assignment of the future receivables is required. If the lessee agrees to credit the rent directly to the loan account, a power of attorney in favour of the bank should be provided by the lessor and the lessee.
What is the quantum of loan provided under the Tamilnadu Mercantile Bank Loan Against Property?
The quantum of the loan under Easy Mortgage Loan is up to 50% of the distress value of the property with a maximum of 50.00 lakhs.
The quantum of the loan under House Rent Loan is 50% of the rent receivables for 84 months or the unexpired lease period minus the TDS whichever is lower subject to a maximum of 400.00 lakhs. The margin of 50% can be increased depending on the prevailing rate of interest subject to the EMI not exceeding 90% of the rent receivables.
What are the charges applicable for the Tamilnadu Mercantile Bank Loan Against Property?
A processing fee of 1% of the loan amount for Easy Mortgage Loan availed in the form of a term loan and 0.50% of the sanctioned limit for the Easy Mortgage Loan availed as an overdraft limit will be collected. For a loan under the House Rent Loan, processing charges at 1% of the sanctioned amount will be collected. There is no cap on the maximum amount for the processing charges.
In the event of delayed or non-payment of EMI, a penalty at 2% over and above the normal rate of interest on the outstanding loan amount will be collected for the overdue period.
What is the rate of interest applicable for the Tamilnadu Mercantile Bank Loan Against Property?
The rate of interest for the Easy Mortgage Loan is 12.10% p.a. and for the House Rent Loan, the rate of interest ranges from 12.80% to 14.10% p.a.