Tamilnad Mercantile Bank

Tamilnad Mercantile Bank Personal Loan

Years

Apply Tamilnad Mercantile Bank Personal Loan

About Tamilnad Mercantile Bank Personal Loan

Tamilnad Mercantile Bank (TMB) was found in 1921 and it was originally known as Nadar Bank. Nadar Bank was renamed as Tamilnad Mercantile Bank in the year 1962. It has its headquarters in Toothukudi. From 2010 to 2015 it was rated as one of the fastest growing private sector banks. During 2013, 2014 and 2015 it was rated as the Best Bank due to its vast growth.

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 Personal Loans are one of them. The bank offers Personal Loans to not just salaried class but also to the pensioners.

TMB Bank Personal Loan Interest Rate - Aug 2019

Interest rate

9.20 %

Loan tenure

5 Years

Loan turn around period

1-7 Days

Processing Charges

1 % of loan sanctioned + Taxes

Who can apply?

Self-employed professionals

Salaried individuals

Indian residents

Dishonour Charges

750 per instance

Lowest EMI

2086  Per Lakh

Why Tamilnad Mercantile Bank Personal Loan?

The bank offers Personal Loans that are:

  • Multipurpose and can be used for purchasing household appliances, bear marriage expenses, meet emergency expenses, and for any other reason.
  • Offered with minimum conditions
  • Designed with the needs of a common man in mind
  • Offered with minimum and simple documentation
  • Come at fast processing

Features of Tamilnad Mercantile Bank Personal Loan

Key features of Tamilnad Mercantile Bank Personal Loans are:

Purpose

Purchase of consumer durables, household articles, funding marriage expenses and other family expenses, medical expenses, educational expenses, paying electricity/water/phone bills, etc.

Loan quantum

  • For existing customers with salary account at TMB: Maximum 2 Lakhs
  • For customers without salary account at TMB: Maximum 1 Lakh
  • For pensioners: Up to 95% of 1 month's pension amount after other repayment obligations deductions

Loan Period

Maximum 60 EMIs

Tamilnad Mercantile Bank Personal Loan - Interest Rates

Below are the effective interest rates on TMB Personal Loans as on 13.07.2019:

Loan Scheme Effective Rates of Interest

TMB Personal Loan

9.20% - 14.80%

TMB Pensioner Plan

9.20% - 14.45%

Types of Tamilnad Mercantile Bank Personal Loans Explained

Tamilnad Mercantile Bank offers the following two types of Personal Loans:

TMB Personal Loan

  • Purpose: This is the most utilised loan because it can be availed for various purposes. It can be availed for purchase of household appliances or consumer durables, for performing any family function, for marriage or for any emergency requirement. In a nut-shell it can be said that there is no restriction on endues of the loan.
  • Eligibility: Permanent employees who are in the services of Government Departments, Reputed Corporates, Business Houses, or Recognised Educational Institutions.
  • Age: The minimum age stipulated is 21 years and maximum age 54 years
  • Quantum: If the instalment is deducted by the employer and remitted to the bank or if the instalment is linked to the salary account of the applicant maintained with TMB then the loan amount is 6 times monthly gross salary with a maximum of 2 Lakhs. If no salary account is maintained with TMB and employer has not given a mandate, then the quantum is 6 times the monthly gross salary with a maximum of 1 Lakh.
  • Security: Lien on salary, bonus, and other emoluments

Primary security: Hypothecation of assets created out of the loan if provided for the purchase of consumer durables/household articles. Third party guarantee may be insisted if required.

Collateral security: Since it is an unsecured loan collateral security will not be insisted.

Guarantee: If the salary account is not maintained with the bank and the employer does not issue irrevocable salary mandate then, personal guarantee of two creditworthy persons will be required.

  • Repayment: Maximum repayment period is 60 months. The repayment period will be fixed taking into account the net take-home salary after deducting the equated monthly instalment (EMI) for the proposed loan and the age of the borrower. The loan should be repaid while the borrower is in service.
  • Mandatory requirements: Salary certificate from the employer and income proof to assess the net take home salary. Also, an undertaking from the employer that instalment will be deducted from the salary of the employee and remitted to the bank towards loan instalment every month and an undertaking that the employee will not be transferred or relieved under VRS without informing the bank.
  • Credit Score: Credit score should be above 750 to qualify for the loan

TMB Pensioner Plan

The age limit stipulated for regular TMB Personal Loan is 21 years to 54 years. Obviously, a pensioner will not fit into this parameter of eligibility. TMB then introduced a Personal Loan facility in the form of pension loan to pensioners based on future receipt of pension amount into the TMB savings bank account. This is to make funds available to pensioners to make their regular bill payments in case they come across funds crunch at any time. This enables the pensioner to get immediate funds at the time of need at very low interest and margin. Since it is an overdraft limit interest is charged only to the extent of usage. This gives the flexibility to utilize the funds only in case of need and replenish the same when there are surplus funds.

Features of Pensioner Loan are as mentioned below:

  • Eligibility: Employees of Central/State Govt. organizations/ PSUs/ banks get their pension through TMB branch.
  • Purpose of loan: The loan can be utilised for regular expenses like paying the electricity bill, water bill, telephone bill, purchase of grocery, education, and medical expenses, and family expenses.
  • Quantum: Up to 95% of pensioner's 1-month pension after the deduction of other repayment obligations (if any) of existing loans availed by the applicant.
  • Nature of limit: Overdraft in a savings bank account. The overdraft limit is allowed only at that branch where the borrower's pension is being credited.
  • Margin: 5% margin is stipulated for the loan
  • Security: No security is insisted for a pension loan. It is an unsecured loan offered to senior citizens to provide for their regular expenses.

Tamilnad Mercantile Bank Personal Loan - Eligibility Criteria

Before deciding to avail the Personal Loan, check the eligibility to ascertain the loan quantum. There are set guidelines for the eligibility which has to be fulfilled to qualify for the loan. In TMB the eligibility is assessed based on the income, stability of job or business, age and repayment capacity. A credit score is also a mandatory requirement.

The eligibility criteria are as mentioned below:

  • TMB offers Personal Loan to permanent/confirmed employees, who are in the services of government departments, business houses/ reputed corporate, recognised educational institutions, etc. The loan is also available to the employees of state/ central government organisation/ PSUs/ banks who get their pension through Tamilnad Mercantile Bank branches.
  • Applicant's age must be below 54 years
  • The applicants should have a salary account with TMB otherwise the loan quantum will be reduced.

Documents Required for Tamilnad Mercantile Bank Personal Loan

The Tamilnad Bank has simple documents requirement norms. Following are the documents the bank seek from its applicant at the tie of applying for the loan:

For Personal Loan Applicants

  • Application form for Personal Loan
  • Identity, age, and address proof
  • Proof of income & certificate from the employer in relation to the take-home salary
  • Undertaking from the employer for deduction and remittance of the EMI amount from the salary of the staff each month when the employer agrees for the same.
  • Quotations wherever mandatory
  • Third party's guarantee consent letter, if necessary
  • Undertaking from the employer that the loan applicant will not be relieved from their services under VRS without the bank's consent.

For Pensioner Loan Applicants

  • Application form for Personal Loan
  • Identity, age, and address proof
  • Undertaking letter from the borrower that they will not change the authorisation given to the employer to credit their pension to TMB Limited during the entire tenure of the overdraft limit.

Why Apply for Tamilnad Mercantile Bank Personal Loan through MyMoneyMantra?

It is beneficial to apply for a Personal Loan through MyMoneyMantra as the whole process is very simple, well managed, and stress-free. The team at MyMoneyMantra goes through your requirements and offers specific and customised solutions to ensure that you get into what suits your needs best keeping in mind your payback capability, other liabilities, and current needs.

MyMoneyMantra enjoys a great association with several banks and might even be able to get you discounted interest rates and good offers while processing your loan request. You will find yourself assisted all through the way up until the loan gets disbursed by the bank.

To top it up, your personal information remains safe with MyMoneyMantra and there is complete privacy all along.

How to Apply for Tamilnad Mercantile Bank Personal Loan at MyMoneyMantra?

Digitally applying for the Personal Loan enables quick processing of the loan and the whole ordeal will be made simple. To avail of this facility, you need to apply for the loan through MyMoneyMantra. The procedure for applying for the loan through their website is very simple.

Follow the simple steps mentioned below and make the whole process of availing Personal Loan quick and simple.

  • To begin with open the MyMoneyMantra website
  • You have to go to the Loans menu and click on Personal Loan option
  • Then all the necessary details have to be filled in and submitted
  • Once the details are submitted successfully, the process will be initiated
  • You will be contacted by representatives from MyMoneyMantra to take the process forward.

Other Products by Tamilnad Mercantile Bank

The bank also offers the following products:

Home Loan

House Rent Loan

Home Loan for NRI

Education Loan

Doctor Loan

Two Wheeler Loan

Car Loan

Vehicle Finance (Commercial)

Skill Development Loan

Short Term Study Loan

IPO Finance Loan

Gold Over Draft

Sovereign Gold Bond Loan

Banana Cultivation

Brackish Water Shrimp Farm

Channel Finance

Genset Finance

Easy Mortgage Loan

Inland Fisheries Farm

Mahalir Loan

Micro Entrepreneurs Scheme

Pharma Trade Finance

MSME Credit Scheme

Rice Mill

Trader/ Service Loan

Vehicle Finance (Corporates)

Vehicle Finance (Educational Institutions)

Tractor Loan

Current A/c

Anywhere Banking A/c

Cash Credit A/c

Super Flexi Current A/c

Savings (AWB) A/c

SB Premium A/c

Salary SB A/c

Happy Family Banking A/c

Dormant A/c Policy

Dynamic Youth SB A/c

Little Super Star Savings A/c

Visa SB A/c

Royal SB A/c

Mahila Subha SB A/c

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)

Pradhan Mantri Jan Dhan Yojna (PMJDY) Savings Bank A/c

Mahila Subha SB A/c

Pradhan Mantri Suraksha Bima Yojana (PMSBY)

NRE Premium A/c

NRE Regular A/c

NRO A/c

RFC A/c

NRO Malligai & Mullai Tax Saving A/c

NRI A/c

FCNR-B A/c

FCNR Plus A/c

Basic Savings Deposit Scheme

Basic FD

Account Portability

Santhosh FD

Pearl Deposit

Tax Saving FD

20:20 Deposit

Premature FD Closure

Cash Certificate

Basic RD

Premature RD Closure

Siranjeevee RD

ERD Online RD

Navarathnamala RD

Kids RD

Retail Services

Muthukuvial FD

Forex Services

Money Transfer

TMB Travel Card

Smart Shopper Visa Debit Card

Corporate Business Services

How to Calculate Tamilnad Mercantile Bank Personal Loan EMI?

There is an online EMI Calculator tool available on MyMoneyMantra for calculating the exact Personal Loan EMI amount. This will help the applicant to arrive at the exact EMI so that the applicant can plan their budget so that the EMI of the proposed loan will not affect the monthly expenses. The loan parameters like loan amount, tenure and interest rate need to be provided by the borrower to calculate the EMI that is suitable for their requirements.

Tamilnad Mercantile Bank Personal Loan - Processing Fee and Other Charges

Fees or Charges Levied Amount

Processing fees

1% of the loan amount

Penal interest for delay in instalment payment

2% over and above the regular interest rate on the outstanding loan liability

Tamilnad Mercantile Bank Personal Loan - Customer Care

To contact the bank directly and enquire about their Personal Loans or any other product call their following toll-free numbers:

18004250426 or 9842461461

FAQs - TMB Personal Loan

What is the maximum loan amount under TMB Personal Loan?

The maximum loan amount is 2 Lakhs if irrevocable salary mandate is given by the employer or if the salary account is maintained with TMB. Otherwise the maximum loan amount is 1 Lakh.

What is the processing fee charged?

The processing fee is 1% of the loan amount without a maximum cap.

How to expedite the processing of TMB Personal Loan?

Before applying for the loan do an eligibility check with the information provided in the TMB website which will speed up the processing procedure.

How is interest on loan account charged?

Interest is charged on reducing balance at monthly intervals. Interest is linked to one year MCLR. If RBI reduces MCLR then interest will be reduced and if MCLR is increased the interest charged will be increased. Making part pre-payment in case of availability of surplus funds is advisable to reduce the interest charged. However, TMB will collect part pre-payment and pre-closure charges.

Will pension loan be given if the pension is credited to account in any other bank?

Pension loan will be given only if the pension is credited to Tamilnad Mercantile Bank Account. Also, the overdraft facility will be given in the branch of Tamilnad Mercantile Bank where the account is maintained.

Should security be provided if the pension loan is availed at TMB?

Pension loan is an unsecured Personal Loan and so security will not be insisted for the loan.

What is the maximum loan amount provided under TMB Pension Loan?

Pension loan is available to the extent of 95% of monthly pension after considering all the other commitments of the applicant.

What is the penalty applied in case of delayed payment?

Up to 2% over and above the regular interest rate on the outstanding liability.

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