TamilNad Mercantile Bank Car Loan

Overview About Tamilnad Mercantile Bank Car Loan

Tamilnad Mercantile Bank (TMB) was founded in 1921 as the Nadar Bank in Tuticorin in Tamil Nadu, India. In the year 1962, the bank got its present name. With its headquarter in Tuticorin, the bank has over 400 branches in India at present and works actively towards rural development.

The bank has a variety of products which include different loans and deposits. It provides vehicle loans for both two and four wheelers, home loans, education loans and personal loans among others.

Why Choose Tamilnad Mercantile Bank Car Loan

TMB provides car loans for new and used cars for both personal and professional use. Easy documentation, quick processing and competitive rates of interest make the car loan scheme an attractive one. The bank provides a high amount of loan to its customers, helping them fulfil their dream of possessing the best car.

Features of Car Loans from Tamilnad Mercantile Bank

• The car loan is available for both personal and professional use
• The car loan is available for used cars (which is 4 years old or less). This car has to be in good working condition.
• A high amount of loan is provided by TMB on new cars and for used cars, the maximum amount of the loan provided is Rs.15 lakhs
• The loan margin is 15% of ‘on road price’ for new cars. The margin is 30% of purchase value or market value (the one which is lower) in case of used cars
• The primary security which is the hypothecation of the vehicle being bought is required to get the car loan
• A person can repay the loan through EMIs over a period of 5 years. In case of salaried individuals, the EMI will not cross 40% of their net salary. For others, the Average Debt Service Coverage Ratio has to be 1.50:1 or more

Tamilnad Mercantile Bank Car Loan Interest Rates

TMB follows the “base rate’” system to determine the effective interest rate applicable for various tenure option on auto loans.

Note: The MCLR is subject to periodic revision as per bank’s credit policy and RBI’s quarterly reviews. Make sure to confirm with the bank on prevailing rates at the time of applying and choose the terms accordingly.

Eligibility Criteria for a Car Loan from Tamilnad Mercantile Bank

• For Individuals, Hindu Undivided Family (HUF), Partnership firm, Limited Company and Trust Individuals to be eligible for the car loan, they need to have a minimum gross income of Rs. 1,20,000 p.a. The income of the spouse is considered for calculating minimum gross income
• For everyone else to be eligible for the car loan, they need to have an Average Debt Service Coverage Ratio of 1.50:1 or more

How to calculate EMI on Tamilnad Mercantile Bank Car Loan

By calculating the equated monthly installment (EMI) in advance, a person gets a good idea about the finances involved in taking a car loan. This information can also help you choose the best loan tenure for himself.

For calculating the EMI, you can use the EMI calculator on Bank Bazaar’s website. You can find the calculator in the ‘Finance Tools’ section on the site. Before calculating, you have to keep information such as the loan amount, tenure, rate of interest and processing fee ready.

To calculate, enter the loan amount and tenure on the sliders. After that, fill in the other information asked and click on ‘calculate’ which will give you detailed results which includes the EMI and the amortisation table.

Tamilnad Mercantile Bank Car Loan FAQ'S

1. Who all are eligible to apply for a car loan from Tamilnad Mercantile Bank? Individuals, Partnership Firms, Trusts, Limited Company and HUF (Hindu Undivided Family) can apply for a car loan from Tamilnad Bank Mercantile Bank.
2. What is the minimum income eligibility criteria? The minimum income eligibility of an individual is a Gross Annual Income of Rs. 1.20 Lakhs.
3. Can I add the income of my spouse to meet the minimum income eligibility criteria?Yes, you can add the income of your spouse to meet the minimum income eligibility criteria.
4. What is the maximum amount of loan offered by Tamilnad Mercantile Bank for the purchase of new cars? The maximum amount of loan offered by Tamilnad Mercantile Bank for the purchase of new cars is Rs. 150, 00,000.
5. What is the minimum amount of loan offered by Tamilnad Mercantile Bank for the purchase of new cars? Tamilnad Mercantile Bank has not stipulated a minimum limit on the amount of car loan offered to an eligible applicant for the purchase of new cars.
6. What is the maximum amount of loan offered by Tamilnad Mercantile Bank for the purchase of used cars? The maximum amount of loan offered by Tamilnad Mercantile Bank for the purchase of used cars is Rs. 15, 00,000.
7. What is the minimum amount of loan offered by Tamilnad Mercantile Bank for the purchase of used cars? Tamilnad Mercantile Bank has not stipulated a minimum limit on the amount of car loan offered to an eligible applicant for the purchase of used cars.
8. What is the loan margin applicable for the purchase of new cars? The loan margin applicable for the purchase of new cars is 15% of the On Road Price of the vehicle.
9. What is the loan margin applicable for the purchase of used cars? The loan margin applicable for the purchase of pre-owned cars is 30% of the market value or the purchase value of the used car, whichever is the lowest.
10. What is the role of CIBIL score in availing a Tamilnad Mercantile Bank Car Loan? The CIBIL score is a credit rating based on an individual's credit transactions. It reflects the creditworthiness of the individual, his/her credit dues, payment capacity and reliability, etc. Tamilnad Mercantile Bank, like other lenders, evaluates the applicant’s CIBIL score and if it is high, the chances of approval of the car loan application is high. A poor CIBIL score can lead to the rejection of the request for a car loan.
11. For individual applicants, who can stand as a guarantor to the Tamilnad Mercantile Bank Car Loan? For individual applicants, the spouse or any other third party can stand as a guarantor to the Tamilnad Mercantile Bank Car Loan.
12. Who can stand as a guarantor if the applicant is a HUF? The guarantor of a HUF should be any male member of the family.
13. What is the maximum repayment tenure available to a borrower? The maximum repayment tenure available to a borrower is five years.
14. How can I repay the car loan from Tamilnad Mercantile Bank? The Tamilnad Mercantile Bank Car Loan can be repaid in EMIs (Equated Monthly Installments).
15. How is EMI determined for a salaried borrower? The car loan EMI of a salaried individual should be less than 40% of the individual’s take home salary.
16. How is EMI determined for Companies, Firms or Trusts? For the Companies, Firms or Trusts, EMI is determined on the condition that the Average Debt Service Coverage Ratio (ADSCR) should be in the ratio 1.50:1 or above.
17. What is the security that has to be offered against the Tamilnad Mercantile Bank Car Loan? The security that has to be offered against the Tamilnad Mercantile Bank Car Loan is the hypothecation of the vehicle bought using the finance provided by the Bank.
18. What is the interest rate applicable on a car loan tenure less than 36 months? The interest rate applicable annually on a car loan tenure less than 36 months is 11.40% (BR + 1.00%).
19. What is the interest rate applicable on a car loan tenure more than 36 months and up to not more than 60 months? The interest rate applicable annually on a car loan tenure more than 36 months and up to not more than 60 months is 11.65% (BR + 1.25%).
20. What is the current Base Rate applicable on the car loan interest rate? The current Base Rate applicable annually on the car loan interest rate is 10.40%.
21. How do I calculate the EMI on my Tamilnad Mercantile Bank Car Loan? You can calculate the EMI on your Tamilnad Mercantile Bank Car Loan by using the online EMI calculator tool offered by BankBazaar or the online EMI calculator tool offered on the Bank’s website.
22. What is the penal interest applicable on defaulted payment of the Tamilnad Mercantile Bank Car Loan? The penal interest applicable on defaulted payment of the Tamilnad Mercantile Bank Car Loan is 2% additional interest to the regular interest rate.
23. What is the processing fee levied on the Tamilnad Mercantile Bank Car Loan? The processing fee levied on the Tamilnad Mercantile Bank Car Loan is 1% of the loan amount sanctioned by the Bank.
24. Is prepayment penalty levied by the Bank on foreclosure of the car loan? If the borrower forecloses the loan from his/her own sources, then prepayment penalty is not levied. However, if there is a takeover of the car loan by another bank, then prepayment penalty is charged by Tamilnad Mercantile Bank.
25. What is the prepayment penalty charged by Tamilnad Mercantile Bank on its Car Loan Scheme? In the case of a takeover of the car loan by another bank, 0.25% of the prepaid amount is charged as foreclosure penalty/ prepayment charges.
26. Can I avail the Tamilnad Mercantile Bank Car Loan to purchase a vehicle for professional use? Yes, you can avail the Tamilnad Mercantile Bank Car Loan to purchase a vehicle for professional use.
27. What documents are required to apply for the car loan? In order to apply for a car loan from Tamilnad Mercantile Bank, the applicant should submit the following documents -
    • Address Proof
    • Quotation for the vehicle from a recognized seller
    • Proof of Income
    • Letter from a guarantor, if available
    • For more information related to the documents to be submitted, kindly contact the bank.
28. For further information,who should I contact? For queries, concerns or grievances related to the Tamilnad Mercantile Bank Car Loan, you can contact the customer care at the toll free number of the bank or approach any branch of the Bank.
29. Is it necessary to insure the car purchased using the Tamilnad Mercantile Bank Car Loan? Yes, the car purchased using the Tamilnad Mercantile Bank Car Loan and hypothecated in lien of the Bank, should be sufficiently insured.
30. What are the other documents that have to be submitted along with the Loan Application Letter? Loan Application Letter should be submitted along with Quotation from the distributor, Proof of Income such as salary certificate, Income Tax Return, etc. and if applicable, a letter from the Third Party Guarantor.