Tamilnad Mercantile Bank Car Loan Eligibility Overview
Tamilnad Mercantile Bank Ltd. was established in 1921 and was initially called Nadar Bank Ltd. Though initially the bank had only 4 branches in Madurai, Tuticorin, Virudhunagar and Sivakasi, it currently has 437 branches across India.
Tamilnad Mercantile Bank offers car loans with special features such as faster processing, simple documentation and manageable terms and conditions. A borrower can easily purchase new and used cars at comparatively lesser rate of interest. Car financing is available for the purpose of:
- Purchase of four wheeler/ new cars for professional or personal use.
- Purchase of Used cars / Second Hand Cars which is less than 4 years old and is in good working condition.
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Tamilnad Mercantile Bank Car Loan Eligibility Criteria
- Any individual, Partnership Firm, Hindu Undivided Families (HUF), Trust Individual or Limited Company can apply.
- The applicants belonging to the above categories should earn a Gross Income of at least Rs. 1,20,000 annually. This can also include the income of the co-applicant or spouse.
- Others who do not belong to the above categories having an average Debt Service Coverage Ratio of 1.50:1 or more, can apply.
Factors affecting Tamilnad Mercantile Bank Car Loan Eligibility
- A good CIBIL Score is one of the main factors that would positively affect yourTamilnad Mercantile Bank Car Loan eligibility. Once a car loan application is submitted, checking the applicant’s credit history and CIBIL score is one of the first things that a bank does. This does not necessarily mean that the approval of the application depends solely on the CIBIL Score. The approval may not be in your favour only if you have a really poor credit report and if this is the case, the bank assumes that you are not creditworthy and will reject the car loan application.
- Down Payment made by the borrower for the car of his choice also greatly affects the decision making process. The higher the percentage of loan margin paid by you, the lower the car loan amount. Which subsequently means that your repayment capacity is higher and the risks involved related to defaulting on the car loan is also low. Hence, the Bank will take a favourable decision on your car loan application.
- Age is another important factor which greatly affects your chances of availing a car loan from the Tamilnad Mercantile Bank. An applicant should not only fall within the age criteria set by the bank in order to be eligible for the car loan, but also should reach a fine balance in terms of loan amount and loan tenure if he/she falls within the upper age limit set by the bank. This is because generally, older borrowers are a high risk factor in terms of income stability and repayment capacity so several banks hesitate from providing a loan to them. However, if these applicants have a good income and opts for a shorter tenure, there will be no hurdles in their car loan approval.
- Income: Income of the borrower reflects his/her repayment capacity and hence if the income is not sufficient to cover his/her debt outflows, a bank does not view the applicant in a favourable light. The Bank analyses all credit outflows by scrutinizing the applicant’s credit history and all the repayments due, against his/her annual income. This helps the bank to arrive at an estimate of the individual’s repayment capacity and creditworthiness.
- Loan Tenure: The loan tenure opted by a borrower is a very crucial element that affects his/her eligibility for the car loan. A longer car loan tenure indicates higher probability of risk for the bank and hence, the decision making process will be more complicated. However, a shorter tenure means faster repayment so the bank will approve the loan if all other factors determining the applicant’s eligibility is also favourable.
How to increase your Tamilnad Mercantile Bank Car Loan Eligibility
- If there is a guarantor who can vouch for your income and social standing, this will influence the bank to consider the car loan application favourably.
- If the applicant is willing to pledge a valuable asset such as gold, fixed deposit, deeds to property owned by him/her, as collateral or security, any risk considered by the Bank is minimalised. Thus, the bank might consider your eligible for the car loan.
- By paying all your dues on time, you can achieve a good CIBIL score. This can go a long way in convincing the Bank of your creditworthiness.
- By applying for a car loan with a co-applicant, you can increase your eligibility. This is because the income of the co-applicant will be clubbed along with yours which reflects as a higher repayment capacity. With a co-applicant the bank has a double assurance of repayment of the car loan since both have equal financial liability.
Tamilnad Mercantile Bank Car Loan Eligibility Calculator
With an easy tool called the car loan eligibility calculator, you can evaluate whether you are eligible for a Tamilnad Mercantile Bank car loan or not, before you go ahead and apply for one with the bank. It is better to know your chances of getting the loan approved before applying for a car loan and wasting extra time and effort. This tool makes the process uncomplicated and in an instant you can find out whether you are eligible for Tamilnad Mercantile Bank car loan. You will have to enter some basic details for the tool to calculate your eligibility. This information includes: your date of birth, income, your choice of car/model, price of the car, type of employment (salaried/self-employed), etc. Once you click on “calculate”, the tool shows you detailed information regarding your car loan eligibility.