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.Our home loan scheme helps you to buy / build your dream home as per your choice at the best possible interest rate and longer repayment tenure with easy documentation and quick processing.For Construction/purchase loans Up to Rs. 300 Lakhs and for Renovation restricted up to Rs. 25 Lakhs.To know more, follow some simple steps given below to get best interest rates.
At least 18 years old
Less than 50 years old
Salaried or self-employed
with regular income
Earn more than the minimum
Earn more than the minimum
Loan capped @ 85% of property value
EMIs of other loans lower
Make your spouse a co-applicant,
and her income will add
to your eligibility
Choose longer tenure loan up to 30 years
Alternatively add your parents
|Interest Rate||8.95% to 9.20%|
|Processing Fees||0.50% of the Limit Sanctioned without any maximum cap plus applicable tax|
|Loan Tenure||30 years|
|Guarantor Requirement||Guarantor required|
Founded as the Nadar Bank in 1921, this Tuticorin headquartered banking company has come a long way since its inception, helping millions of Indians with their banking and finance needs. Popularly known as TMB, it offers loan for a wide range of housing needs for the following purposes.
If you’re looking for a loan with rich features and benefits coupled with attractive interest rates, a loan from TMB can be the ideal product for you. The following section will help in understanding the product better.
Since prices of real estate are always on the rise, you can trust TMB to take up a large share in your project costs since the loan offered is up to Rs.300 lakhs, with no separate slabs for different types of housing projects. For home renovation loans, the maximum one can borrow is Rs.25 lakhs. With such high financing, you don’t have to look for secondary finance elsewhere.
The loan margin (your share) is determined on the basis of the type of property the loan has been availed for. The table below will help us in understanding the loan margin for various types of properties.
|Type of property||Loan margin|
|New flat||25 percent|
|House construction or plot purchase||25 percent|
|House renovation (below 5 years age)||25 percent|
|House renovation (above 5 years age)||40 percent|
|Purchase/renovation of an old flat||30 percent|
TMB mandates the primary borrower to produce a guarantor to secure the loan amount at the time of availment. In case of HUF, the guarantor should be a male member of the family, individuals can sign in spouse, father or a third party. On the basis of the income and background of the applicant, the bank can consider waiving off the option of loan guarantee.
TMB offers a salient repayment term of up 25 years to repay the loan in monthly installments.The borrower is free to choose a term of their choice. The upper limit of the repayment term does not include holiday period, to be calculated separately.
The loan security is in the form of mortgage where an equitable portion of the house is mortgaged until full repayment of the loan amount.
Akin to other housing loans in the market, you can claim deductions under the relevant sections of the Income Tax Act, both on principal amount and interest paid under the loan.
Minimal processing charges:
The processing fee billed towards handling the loan application is charged at the rate of just 1% of the loan amount with no cap on maximum or minimum amount.
Late payment penalty:
If there is a delay in receiving monthly EMI payment from the borrower, a penal interest charge at the rate of 2.00% per annum is payable along with the regular rate of interest on the balance amount outstanding.
The effective rate of interest applicable for home loans is linked to the base rate and is determined on the basis of the loan amount. TMB maintains cut off slabs for depicting applicable rates. The table below provides details of the current rates. Since base rate is subject to frequent revision, check with the nearest branch to validate the current rate before applying.
|Home Loan Amount||Interest rate|
|Up to Rs.30 lacs||
10.30% for term up to 60 months
10.55% for term above 60 months up to 15 years
10.80% for term above 15 years up to 30 years
|Above Rs.30 lacs||10.80% regardless of the term chosen|
The Marginal Cost of Funds-Based Lending Rate announced by TMB on April 1, 2016, are as follows:
All other elementary documents such as ID and address proof are also required during the application process.General Conditions:
Old house/flat purchase: If the borrower is buying an old house or a flat, it should not be older than 20 years from the time of application in case of a house and 15 years if a flat is being procured. The valuation and residual life of the property should be certified by an approved engineer in liaison with the concerned branch manager.
Balance transfer from other banks/finance institutions: The maximum loan amount provided by TMB cannot exceed the current outstanding amount on the existing loan. The repayment offered by TMB is the residual term left with the other bank. In case the borrower requires a longer term, it should not exceed the residual life of the house/flat as certified by an approved engineer.
Along with personal repayment capacity of the applicant, the loan amount sanctioned will the lowest of purchase cost, value or registration or market value of the property. In case of construction of a house on a plot already owned by the borrower, the loan amount will be up to 90% of the project costs with certain conditions.
You can claim deductions in income tax on both interest paid and the principal repayment. Under section 24(b) of the Income Tax Act, you can claim up to Rs.1,50,000 towards the interest paid on the home loan. As per section 80C and 80CCE, a deduction of up to Rs.1,00,000 can be claimed during a specific assessment year.
The EMI (Equated Monthly Repayment) amount should not exceed 50% of the salary drawn for salaried borrowers.
The margin for construction loan is 10% of the project cost as certified by an approved engineer/architect.
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