• Tamilnad Mercantile Bank (TMB) Doctor Loan

    The TamilNad Mercantile Bank, or TMB as it is popularly called, offers a special loan for doctors and medical professionals so as to scale up their operations and give better service and care to patients. The loan amount is meant for purposes like constructions or procurement of medical equipment for hospitals, nursing homes or other healthcare installations.

    Where can I use the loan amount?

    • The loan amount can be used to purchase or construct hospital buildings/residences, polyclinics, nursing homes etc. for expansion/revamping of existing buildings.
    • To buy medical equipment, computers, scanners, computers etc.
    • Purchase of vehicles for the hospital such as ambulances etc.

    Who can avail this loan?

    • Qualified medical practitioners

    • Partnership firms

    • Limited companies

    • Trusts

    For partnership firms, trusts and limited companies, at least one of the partners, trustees or directors respectively should be a qualified and registered medical practitioner, or should be involved in the services offered by a registered medical practitioner.

    What are the types of financing available?

    • Term loan
    • Demand loan
    • Overdraft (Working Capital)

    What is the maximum amount of loan I can avail?

    The quantum of loan is capped according to the location of proposed expenses.

    • Rural: Maximum amount of Rs.1 crore, including a maximum of Rs.10 lakhs that can be used as working capital.
    • Semi-urban: Maximum amount of Rs.2 crores, including a maximum of Rs.20 lakhs that can be used as working capital.
    • Urban/metropolitan: Maximum amount of Rs.4 crores, including a maximum of Rs.40 lakhs that can be used as working capital.

    Working capital limit is decided on the basis of the healthcare installation’s daily expenses and size as well as stocks held pertaining to clinical requirements. A maximum of 3 months’ worth of requirements will be considered when processing requests for working capital.

    What is the rate of interest on TMB Doctor Loans?

    Financing Type


    Interest rate (Base Rate of 10.40% as of November 2015)

    Credit limit


    BR + 3.00% = 13.40% p.a.

    Credit limit


    BR + 3.50% = 13.90% p.a.

    Credit limit

    Less than 50%

    BR + 4.25% = 14.65% p.a.

    Vehicular purchase


    BR + 3.00% = 13.41% p.a.

    What are the terms for TMB Doctor Loan?

    • Income tax assessment orders or financial statements are required if applying for a loan of Rs.15 lakhs or more.

    • The repayment tenure is available up to 7 years apart from a 12 months moratorium period as per the project.

    • Security has to be submitted in the form of mortgage over land/building for loans availed for construction, or hypothecation of the assets that are built out of the loan finance.

    • Collateral security not necessary for loans up to Rs.15 lakhs as well as for loans for purchasing vehicles.

    • Collateral security needed for loan above Rs.15 lakhs in the form of up to 50% of the loan amount.

    • All assets that are hypothecated to TMB have to be insured comprehensively.

    • Margins of 20% for construction or purchase of buildings, 25% for outright purchases and 25% for working capital sanctions.

    • Defaults in repayment will attract fines at 2.00% p.a. penal interest rate.

    • Processing charges of 1.00% on sanctioned amount and 0.50% on working capital sanctions, without any upper ceiling.

    • Prepayment charges at 1.00% of loan amount.

    How do I apply for this loan?

    You can apply for this loan by filling up the application form available online as well as at any of the branches of TMB.

    Can I apply for the TMB short term study loan online?

    Currently the bank doesn’t support online applications. However, you can download the application form online and fill and submit the same at any of the branches of TMB.


    Let’s say you are availing a loan of Rs.10 lakhs and have submitted collateral of 100% of the loan amount. You have chosen the maximum repayment tenure of 7 years (84 months). The rate of interest on fully secured loan is 13.40% p.a. as of now. Suppose you are planning to prepay the loan in 5 years.

    • Amount: Rs.10 lakhs

    • Repayment tenure: 7 years (84 months)

    • Interest: 13.40%

    • Processing charges: 1%

    Your monthly repayment amount will be:

    EMI: Rs.18,410

    • Total principal due: Rs.10 lakhs

    • Total interests due: Rs.5.465 lakhs

    • Processing fee: Rs.10,000

    • Total amount payable: Rs.15.565 lakhs

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