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Tamilnad Mercantile Bank Personal Loan Details

TMB Bank Personal Loan Interest Rate - November 2021
Interest rate14.05%
Loan tenure5 Years
Loan turn around period1-7 Days
Processing Charges 1% of loan amount + applicable taxes
Who can apply?Indian residents salaried individuals
Lowest EMIRs. 2,329  Per Lakh
AgeBelow 54 years

Types of Tamilnad Mercantile Bank Personal Loans

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

TMB Personal Loan

  • Purpose: This loan can be availed for various purposes, such as 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 end use 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 Rs. 2 Lakhs. If no salary account is maintained with TMB and the employer has not given a mandate, then the quantum is 6 times the monthly gross salary with a maximum of Rs. 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. 

TMB Pensioner Plan

  • Purpose: It is 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. 
  • 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 on for a pension loan. It is an unsecured loan offered to senior citizens to provide for their regular expenses.

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.
  • Tenure: Maximum 60 EMIs
  • Loan amount: 
    • For existing customers with a salary account at TMB: Maximum Rs. 2 Lakhs.
    • For customers without a salary account at TMB: Maximum Rs. 1 Lakh.
    • For pensioners: Up to 95% of 1 month's pension amount after other repayment obligations deductions.
  • 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.

Why Apply for Tamilnad Mercantile Bank Personal Loan?

The bank offers Personal Loans that are:

  • Multipurpose and can be used for purchasing household appliances, bearing marriage expenses, meeting 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.

Tamilnad Mercantile Bank Personal Loan EMI Calculation

There is an online Personal Loan 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 Personal Loan the EMI that is suitable for their requirements.

Apart from calculating the EMI amount, the EMI Calculator also displays the amortization schedule for loan repayment.

Here’s an example:

Personal loan amount required: Rs. 2 Lakhs

Applicable rate of interest: 14.05% p.a.

Tenure: 5 years

EMI to be paid each month till the tenure ends: Rs. 4,659

Total interest to be paid: Rs. 79,530

Total amount to be paid to the lender: Rs. 2,79,530

Amortization schedule of the above example:

YearOpening Balance

Amount Paid by

customer(EMI*12)

Interest paid during

the year

Principal paid during

the year

Closing Balance
1Rs. 2,00,000Rs. 9,318Rs. 4,656Rs. 4,661Rs. 1,95,339
2Rs. 1,95,339Rs. 55,906Rs. 25,539Rs. 30,367Rs. 1,64,971
3Rs. 1,64,971Rs. 55,906Rs. 20,986Rs. 34,920Rs. 1,30,052
4Rs. 1,30,052Rs. 55,906Rs. 15,752Rs. 40,154Rs. 89,897
5Rs. 89,897Rs. 55,906Rs. 9,732Rs. 46,174Rs. 43,724
6Rs. 43,724Rs. 46,588Rs. 2,865Rs. 43,724Rs. 0

Comparison of Tamilnad Mercantile Bank Personal Loan with Other Lenders

Name of LenderRate of Interest (per annum)Processing FeeMaximum Loan Limit
Tamilnad Mercantile Bank14.05%1% + taxesRs. 2 Lakhs
Saraswat Bank13.50%Rs. 2,500Rs. 5 Lakhs
HDFC Bank10.25% - 21%Up to 2.50%Rs. 40 Lakhs
SBI Bank9.60% - 15.65%1.50% + GSTRs. 20 Lakhs
Tata Capital10.99% onwardsUp to 2.75% + GSTRs. 25 lakhs
ICICI Bank10.50% - 19%Up to 2.25%Rs. 25 Lakhs

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 time 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.

Tamilnad Mercantile Bank Personal Loan Eligibility Criteria

The Tamilnad Mercantile Bank personal loan 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.

Tamilnad Mercantile Bank Personal Loan Charges

Here are the personal loan processing fee and other charges mention below:

  • Processing fee: 1% of the loan amount + applicable taxes.
  • Penal interest for delay in instalment payment: 2% over and above the regular interest rate on the outstanding loan liability.

How to Apply for Tamilnad Mercantile Bank Personal Loan?

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 can apply online through MyMoneyMantra. 

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 the 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.

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

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Personal Loans -Tamilnad Mercantile Bank FAQs

What is the maximum loan amount under TMB Personal Loan?

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

What is the processing fee charged?

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The processing fee is 1% of the loan amount plus taxes as applicable.

How to expedite the processing of TMB Personal Loan?

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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 TMB personal loan charged?

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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 prepayment and pre-closure charges.

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

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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?

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

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

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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?

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