• Custom Free
     

    Check Eligibility

  • Tamilnad Mercantile Bank (TMB) Car Loan Interest Rates 21 Oct 2019

    Loading your search...
  • Tamilnad Mercantile Bank offers car loans to their customers who wish to purchase either a new car or a pre-owned car. The rate of interest varies depending on the loan amount, repayment tenure, and whether the customer is purchasing a new car or a pre-owned car.

    The lender charges an interest rate ranging between 10.45 and 11.70% for those looking to buy a new car, while a rate of interest ranging between 11.65% and 14.95% is offered to those who wish to buy a pre-owned car.

    Tamilnad Mercantile Bank Car Loan

    Features New Car Loan Used Car Loan

    Interest rates

    10.45%

    11.65% onwards

    Loan tenure

    5 years

    5 years

    Processing fee

    1% of the loan amount

    1% of the loan amount

    Loan amount

    Up to Rs.150 lakh

    Up to Rs.15 lakh

    Lowest EMI/lakh

    Rs.1,073

    Rs.1,103

    Prepayment charges

    0.25% of the loan amount

    0.25% of the loan amount

    Other charges

    Penal interest

    2% p.a.

    Factors Affecting Tamilnad Mercantile Bank Car Loan Interest Rates

    • Base Rate Fluctuations - The applicable car loan interest rate in Tamilnad Mercantile Bank will vary with changes in the Base Rate, since the interest rate is closely interlinked to this factor. Market fluctuations, inflation, repo rate cuts by RBI, Bank’s arbitration, etc. can affect the Base Rate. Inflation leads to a rise in interest rates and borrowers have to be prepared for this situation when they avail a car loan.
    • CIBIL Score - A high CIBIL Score is a major factor that could greatly influence the car loan interest rate applicable on your Tamilnad Mercantile Bank Car Loan. Once an application for car loan is submitted, the Bank will check the applicant’s credit history and CIBIL score. Even though there are other factors that affects a car loan application, its sanction and provision of an interest rate on the same, CIBIL Score is of primary importance. If the Bank decides to offer the loan to an applicant with an average credit report, then the interest rate applicable on the same might be higher than normal so as to negate the risk involved in doing so.
    • Loan Tenure - The tenure of the car loan as chosen by the borrower is a very significant element that affects his/her car loan interest rate. If you opt for a car loan with a shorter repayment tenure, i.e, less than 36 months, TMB offers a lower interest rate on the loan. However, if you opt for a loan tenure higher than 36 months and lasting up to a maximum period of 60 months, then the interest rate applicable is 0.25% higher than normal. This is because a shorter loan tenure indicates lower risk in defaulting on the loan and quicker repayment of the same.
    • Loan margin - Down payment or percentage of the loan margin paid by the customer for the car also greatly affects the interest rate offered on the loan by the Bank. The higher the down payment the greater is the probability of getting a favorable interest rate on your car loan. This is because this indicates the repayment capacity of the borrower and since the loan amount reduces to a great extent the Bank will be convinced to sanction the loan at a lower rate of interest.
    • Age of the applicant - Age is also an important factor that plays an important role in increasing your chances of getting a lower car loan interest rate from the Tamilnad Mercantile Bank. If the applicant fall within the upper half of the age criteria set by the bank in order to be eligible for the car loan, and have other favorable factors in terms of loan amount and loan tenure, he/she can negotiate with the bank for a lower rate of interest. The reason behind this is that borrowers who are older are a high risk factor in terms of repayment capacity, income stability, etc. so several banks hesitate from providing a loan to them. Even if the loan is offered to this category of applicants the interest rate will be higher.
    • Car Model - In some cases, the model of the car chosen by the borrower might affect the car loan interest rates offered by the bank. Almost all banks stipulate the mandatory hypothecation of the new vehicle as security in exchange of the credit borrowed, the car model will also be considered while making the decision on the interest rate to be offered to the borrower. The resale value of the car as well as its popularity are factors that are considered while weighing the car loan amount to be sanction and the interest rate to be levied on the same. This is because, in the unfortunate event that the borrower is defaulting on the loan, the bank might seize the car and sell it to retrieve the loan amount. In this scenario, the make and model of the car, its affordability, etc. plays an important role.
    • Income - The borrower's income is another factor that is scrutinized thoroughly by the bank in order to arrive at a decision regarding car loan approval and for determining interest rate. The debt-to-income ratio of an applicant will project his/her creditworthiness and repayment capacity. Therefore, applicants who do not have sufficient income to cover his/her existing debt outflows will not get a car loan approval and even if they do, the interest rate on the same will be very high. The credit history of an individual clearly indicates his/her credit outflows and all the repayments due and this can be compared by the Bank against his/her annual income.

    Tamilnad Mercantile Bank Car Loan Frequently Asked Questions (FAQs)

    1. What are the eligibility criteria I will have to fulfill in order to avail a car loan from Tamilnad Mercantile Bank?
    2. You can apply for a car loan from Tamilnad Mercantile Bank if you fulfill the following criteria:

      • If you are a salaried individual/Hindu Undivided Family/Self-employed individual working at a partnership firm, a limited company or a trust.
      • You should have a minimum gross income of Rs.1.2 lakh.
    3. What are the documents I will have to submit while applying for a car loan from Tamilnad Mercantile Bank?
    4. The list of documents you will have to submit while applying for a car loan from Tamilnad Mercantile Bank are given below:

      • Proof of age such as Passport, Aadhaar Card, etc.
      • Proof of identity such as PAN Card, Aadhaar Card, Voter ID, etc.
      • Proof of address such as electricity bill, Aadhaar Card, etc.
      • Proof of income such as your salary certificate, IT returns, balance sheet, etc.
      • Quotation from the registered vendor.
      • Letter from the third-party guarantor, if applicable.
    5. Can I apply for a Tamilnad Mercantile Bank car loan online?
    6. Yes, you can visit the official website of Tamilnad Mercantile Bank and visit the car loan section on the page. Click on the link given to apply for a car loan. You will have to submit the relevant documents required. The bank will verify your details and check the documents submitted. If your documents and details turn out to be correct, the bank will disburse the loan amount to your bank account within few days.

    7. How important is my credit score if I wish to avail a car loan from Tamilnad Mercantile Bank?
    8. Your credit score is of utmost importance if you wish to avail a car loan at a lower interest rate. You must ensure that your credit score is 750 and above so that not only can you avail the car loan without any hassle but also at a lower interest rate. Having a high credit score allows the bank to have an impression that you can repay the loan back in time due to which your loan will get approved much earlier as compared to someone who does not boast of a high credit score.

    9. Can I apply for a Tamilnad Mercantile Bank car loan offline?
    10. Yes, you can visit the nearest Tamilnad Mercantile Bank branch along with the relevant documents. An official will take you through the process of applying for a car loan and will verify the documents submitted by you. If all the documents furnished by you are correct, the bank will disburse the loan amount in your bank account within few days.

    Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.

    reTH65gcmBgCJ7k
    This Page is BLOCKED as it is using Iframes.