• TamilNad Mercantile Bank Car Loan

    Tamilnad Mercantile Bank Limited is a bank headquartered in Tuticorin in Tamil Nadu, India. TMB was founded in 1921 as the Nadar Bank, but changed its name to Tamilnad Mercantile Bank in November 1962 to widen its appeal beyond the Nadar community. Their car loan scheme is among the popular of all the retail loan schemes since it offers quick processing of loans for the purchase of new cars at low interest rates and simple documentation and conditions.

    Documentation needed to apply for an TamilNad Mercantile Bank Car Loan

    • 1. Photo ID and age proof
    • 2. Residence proof
    • 3. Signed application form with photograph
    • 4. Last 6 months bank statement
    • 5. Documentation for salaried applicants:
      • Last 3 months salary – slips
      • Form 16 or Income Tax Returns
    • 6. Documentation for self-employed applicants:
      • Last 3 years Income Tax Returns with computation of Income
      • Last 3 years CA Certified / Audited Balance Sheet and Profit & Loss Account

    TamilNad Mercantile Bank Car Loan Interest RatesUpdated on 19 Jan 2021

    TamilNad Mercantile Bank Car Loan Details
    Interest Rate 11.10% to 11.35%
    Processing Fees 1.00% Processing Charges
    Loan Tenure 1 year to 5 years
    Pre-closure Charges 0.25%
    Guarantor Requirement Guarantor required

    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.

    suit your needs.

    Features of Car Loans from Tamilnad Mercantile Bank

    • The car loans 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.

    TMB Base Rate for New Borrowers
    Base rate 10.40%
    Rate of interest (for a term of up to 36 months) 11.40% (base rate + 1.00%)
    Rate of interest (term from 36 months to 60 months) 11.65% (base rate + 1.25%)

    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 car loan emi calculators 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.

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    TamilNad Mercantile Bank Car Loan Reviews

    • Tamilnad Mercantile Bank
      "Average Service"
      0.5 2.0/5 "Expected more"
      I have taken car loan directly through Tamilnad Mercantile Bank.The rate of interest was very high, it was 14%.This loan was sanctioned on time without any delay .The car model was Maruti Suzuki Alto k10 vxi and there was no difficulties faced so far .This loan is still active and everything was good.
      Was this review helpful? 30
      , surat
      Reviewed on Mar 15, 2020
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