Tamilnad Mercantile Bank Personal Loan Interest Rates

Personal loans from Tamilnad Mercantile Bank have an annual interest rate of 14.05%. The bank charges a processing fee of 1% of the loan amount granted. Loan repayment terms might be extended for up to 60 months.

Tamilnad Mercantile Bank provides personal loans to permanent employees of government agencies, as well as permanent employees of reputable businesses, corporations, and educational institutions.

Details of the Tamilnad Mercantile Bank Personal Loan Scheme

 

TMB Personal Loan Interest Rate

14.05% p.a.

Processing Charges

1%

Period

60 months

Maximum Amount

Rs. 2 lakh

Employment Type

Permanent employment

Characteristics of the Tamilnad Mercantile Bank Personal Loan Schemes

The following are the primary characteristics of Tamilnad Mercantile Bank Personal Loans-

  • Purchase of consumer durables, home products, finance of marriage and other family expenses, medical and educational expenses, payment of electricity/water/phone bills, and so on.
  • Required documents: a salary certificate from the employer and proof of income to calculate the net take-home pay. Furthermore, a commitment from the employer that payment will be deducted from the employee's paycheck and paid to the bank towards loan installment every month, as well as an undertaking that an employee would not be transferred or relieved under VRS without notifying the bank.
  • Maximum tenure: 60 EMIs
  • Loan amount: Maximum Rs. 2 lakhs for established TMB customers with salary accounts.
  • Maximum Rs. 1 Lakh for consumers without a salary account at TMB.
  • Pensioners: up to 95% of one month's pension after other repayment commitments are deducted.

Types of Personal Loan Schemes in Tamilnad Mercantile Bank

Following are the types of Personal Loan Schemes in Tamilnad Mercantile Bank-

a) TMB Personal Loan Scheme

  • This loan could be utilized for a variety of objectives, including the acquisition of household goods or consumer durables, the performance of any family function, marriage, or other emergency needs. There are no limits on using the loan.
  • Quantum: If the instalment is deducted by the employer and sent to the bank, or if the instalment is linked to the applicant's salary account with TMB, the loan amount is six times the applicant's monthly gross pay, up to a maximum of Rs. 2 lakhs. If there is no salary account with TMB and the employer has not granted a mandate, the sum is six times the monthly gross wage, up to Rs. 1 lakh.
  • Lien on pay, bonus, and other emoluments as security.
  • Primary security: Hypothecation of assets created by the loan if it is used to purchase consumer durables/household items. If necessary, a third-party assurance can be insisted upon.
  • Permanent personnel of Government Departments, Reputable Corporations, Business Houses, or Recognized Educational Institutions are eligible.
  • Age: The lowest age is 21 years old, and the highest age is 54 years old.
  • Collateral security will not be required because this is an unsecured loan.
  • A personal guarantee of two creditworthy individuals will be required if the salary account is not managed by the bank and the employer does not give an irrevocable salary mandate.
  • Repayment duration is limited to 60 months.

b) TMB Pensioner Personal Loan

  • It is a Personal Loan facility for pensioners in the form of a pension loan based on the anticipated receipt of pension funds into the TMB savings bank account. This is to ensure that funds are accessible for seniors to make monthly bill payments in the event of a financial emergency.
  • Margin: A 5% margin is required for the loan.
  • A pension loan does not require any security. It is an unsecured loan given to senior persons to help with their daily costs.
  • Employees of Central/State Government entities, PSUs, and banks are eligible to receive pensions from TMB branches.
  • Loan Purpose: The loan can be used to pay for regular expenses such as energy, water, and telephone bills, grocery purchases, school and medical fees, and family expenses.
  • Limit Type: Overdraft in a savings bank account. The overdraft limit is only available at the branch where the borrower's pension is credited.
  • Quantum: Up to 95% of the pensioner's one-month pension, less any other payback obligations (if any) of current loans obtained by the applicant.

TMB Personal Loan Interest Rate 2022

Here is the table to show the TMB Bank personal loan interest rate-

For Salaried

14.4 % - 16.4 % p.a.

For Self-employed

14.4 % - 16.4 % p.a.

Who is Eligible for the TMB Personal Loan?

  • The applicant's earnings: The applicant's income is critical in determining the applicant's repayment capacity. This ensures the bank the loan's viability and lowers the danger of non-performing assets.

  • The applicant's age: The bank's age limitations for the applicant are one of the most important determinants of eligibility. To protect the bank's interest, these limits ensure that the loan is not sanctioned in the name of a minor or an elderly citizen who has no source of income.

  • Banking relationships: To be qualified for personal loans from many lenders, the applicant must have a minimum existing relationship with the bank. This gives the bank information about the applicant's financial history, which helps to ensure the loan's viability. In the event of loan default, the bank may place a lien on the account if it is permitted by the bank's standards and agreed upon by the borrower and the lender.

  • Expenses incurred by the applicant: Existing expenses may make it difficult for any candidate to obtain a personal loan. This decreases the applicant's repayment capacity and may disqualify them from further responsibility.

  • The loan amount: If the loan amount requested by the applicant exceeds the amount that can be sanctioned based on other aspects of eligibility, it becomes a critical consideration in determining loan eligibility or sanction. In such circumstances, banks may reject the loan or issue it at a lesser interest rate.

  • External obligations: When a person already has significant external liabilities (for example, a home loan), the applicant's eligibility for any further loan may be reduced. Lenders may refuse to make another loan if the repayment capacity is insufficient.

  • The applicant's credit score: The applicant's credit score is an important aspect in establishing a person's eligibility for a personal loan. A low-risk candidate has a strong credit score and vice versa. It is also necessary for deciding the interest rate, loan tenure, or loan amount, among other things.

Documents Required

  • Personal Loan Application Form
  • Proof of identity, age, and address
  • Proof of income and a letter from the employer confirming the take-home pay
  • When the employer agrees, the employee agrees to have the EMI amount deducted and sent from his or her salary each month.
  • Quotations are required wherever possible.
  • If necessary, a guarantee consent letter from a third party.
  • The employer guarantees that the loan applicant will not be released from their duties under VRS without the bank's permission.
Looking to Invest?
Open an account with Groww and start investing for free
INVEST NOW
Loading...
ⓒ 2016-2022 Groww. All rights reserved, Built with in India
MOST POPULAR ON GROWWVERSION - 3.5.7
STOCK MARKET INDICES:  S&P BSE SENSEX |  S&P BSE 100 |  NIFTY 100 |  NIFTY 50 |  NIFTY MIDCAP 100 |  NIFTY BANK |  NIFTY NEXT 50
MUTUAL FUNDS COMPANIES:  ICICI PRUDENTIAL |  HDFC |  NIPPON INDIA |  ADITYA BIRLA SUN LIFE |  SBI |  UTI |  FRANKLIN TEMPLETON |  KOTAK MAHINDRA |  IDFC |  DSP |  AXIS |  TATA |  L&T |  SUNDARAM |  PGIM |  INVESCO |  LIC |  JM FINANCIAL |  BARODA PIONEER |  CANARA ROBECO |  HSBC |  IDBI |  INDIABULLS |  MOTILAL OSWAL |  BNP PARIBAS |  MIRAE ASSET |  PRINCIPAL |  BOI AXA |  UNION KBC |  TAURUS |  EDELWEISS |  NAVI |  MAHINDRA |  QUANTUM |  PPFAS |  IIFL |  Quant |  SHRIRAM |  SAHARA |  ITI