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  • TMB Pension Loan

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  • The Tamilnad Mercantile Bank Pensioner Plan offers loans to elderly persons who receive their pensions monthly in the form of pension receipts. By availing the TMP Pension Loan, the pensioner can have access to immediate funds at the bank, for any urgent need. The Pension Loan at TMB is provided at low interest rate and a lower margin amount.

    Features and Benefits of TMB Pension Loan:

    The following are the key features and benefits of the TMB Pension Loan:

    • Purpose – The Pension loan amount can be used by the applicant for paying phone bills, family expenses, medical expenses, electricity bill, water charges or education expenses.
    • Loan Amount – The applicant gets up to 95% of the pension amount received in one month. The loan amount is considered after deduction of various repayment obligations towards the existing loan and other advances.
    • Loan Margin – Tamilnad Mercantile Bank gives a loan margin of 5% to its pensioner applicants.
    • Nature of Limit – An Overdraft in SB account. The bank allows an overdraft limit only at the branch where the pension is credited.
    • Loan Security – The TMB Pension Loan does not require any security to be provided to the bank towards the loan.

    Interest Rates of TMB Pension Loan:

    The following interest rate is applied on the loan:

    • Base Rate + 3.75% - 14.15% per annum
    • Current Lending Base Rate is 10.40% per annum

    Eligibility for TMB Pension Loan

    The following eligibility criteria is required to be fulfilled to avail the TMB Pension Loan:

    • Employees of the central or state government, or public sector.
    • Individuals employed at banks who receive pension via TMB Bank branches.

    Documents Required:

    The documents required for availing the Pension Loan from TMB is very simple. Applicant should provide an undertaking letter stating that the borrower will not change the authorization for crediting pension from the employer to TMB, to any other bank. This authorization should not be changed at any time during the period of the overdraft limit.

    Other Fees and Charges

    Type of Charges Amount
    Processing Charges 1% of the loan sanctioned amount (No maximum limit)
    Penal Interest 2% on the outstanding balance per year (Over the interest rate)

    FAQs

    1. What is the maximum loan amount can I avail under the TMB Pension Loan?
    2. Tamilnad Mercantile Bank provides a loan amount which is 95% of the monthly pension of the applicant.

    3. Will I have to provide any loan security if I take a pension loan from Tamilnad Mercantile Bank?
    4. No, the bank does not require you to provide any security towards a TMB Pension Loan.

    5. If I am receiving my pension amount through another bank other than TMB, am I still eligible for a TMB Pension Loan?
    6. No, you can only avail the TMB Pension Loan if your pension account is in the bank itself.

    7. What is the penalty that I will have to pay to the bank in case of a default in the loan repayment?
    8. The bank charges you 2% penal interest per annum on the outstanding loan balance, in case of default in repayment.

    9. What is the interest rate at which I can avail a Pension Loan from Tamilnad Mercantile Bank?
    10. You can get the TMB Pension Loan at an interest rate of 14.15% per annum.

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