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    TamilNad Mercantile Bank Home Loan

    Bank Name
    Interest Rate Range
    Processing Fee Range
    Loan Amount
    Tenure Range
    10.40% - 10.90% Fixed
    1% One time fee
    3Crs Max
    25 Years
    Response Time Within 30 minutes
    What you'll love
    Think about
    Fees & Charges
    Eligibility Criteria

    TamilNad Mercantile Bank Home Loan is Rated as "Excellent!" by 5 Users

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    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.


    You’re probably eligible for an Tamilnad Mercantile Bank Home Loan if you are

    Tamilnad Mercantile Bank Home Loan Minimum Age

    At least 18 years old

    Tamilnad Mercantile Bank Home Loan Maximum Age

    Less than 50 years old

    Tamilnad Mercantile Bank Home Loan Eligible Employment Type

    Salaried or self-employed
    with regular income

    Tamilnad Mercantile Bank Home Loan Minimum Income

    Earn more than the minimum
    income required


    Your Tamilnad Mercantile Bank Home Loan amount eligibility is based on these factors

    Tamilnad Mercantile Bank Home Loan Minimum Salary

    Earn more than the minimum
    income required

    Tamilnad Mercantile Bank Home Loan Maximum Loan to property value

    Loan capped @ 85% of property value

    Tamilnad Mercantile Bank Home Loan EMI

    EMIs of other loans lower
    your eligibility


    Increase your eligible Tamilnad Mercantile Bank Home Loan amount by these steps

    Tamilnad Mercantile Bank Home Loan Add Spouse as Co-applicant

    Make your spouse a co-applicant,
    and her income will add
    to your eligibility

    Tamilnad Mercantile Bank Home Loan Maximum Tenure

    Choose longer tenure loan up to 25 years

    Tamilnad Mercantile Bank Home Loan Add parents as Co-applicant

    Alternatively add your parents


    Documentation needed to apply for an Tamilnad Mercantile Bank Home Loan

    • 1. Signed application form with photograph
    • 2. ID and residence proof
    • 3. Processing fee Cheque
    • 4. Latest bank statements
    • 5. Documentation for salaried applicants:
      • Last 3 years Income Tax Returns with computation of Income
      • Last 3 years CA Certified / Audited Balance Sheet and Profit & Loss Account
    • 6. Documentation for self-employed applicants:
      • latest income tax returns
      • latest comupation of income


    Tamilnad Mercantile Bank Home Loan Interest RatesUpdated on 27 Oct 2016

    Tamilnad Mercantile Bank Home Loan Details
    Interest Rate 10.40% to 10.90%
    Processing Fees 1.00% of Limit sanctioned without any maximum cap
    Loan Tenure 25 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.

    • For purchasing a plot of land and construction of a house thereon
    • Towards purchasing a flat/house (new and old both permitted)
    • For home improvement services such as extension or renovation

    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.

    Feature & Benefits of Tamilnad Mercantile Bank Home Loan:

    Loan quantum:

    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.

    Loan margin:

    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

    Loan guarantee:

    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.

    Repayment tenor:

    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.

    Loan security:

    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.

    Tax benefits:

    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.

    TMB Home Loan Interest Rates:

    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.

    Loan amount Interest rate
    Up to Rs.30 lacs

    10.40 percent for term up to 60 months

    10.65 percent for term above 60 months up to 15 years

    10.90 percent for term above 15 years up to 30 years

    Above Rs.30 lacs 10.90 percent regardless of the term chosen

    Tamilnad Mercantile Bank MCLR:

    The Marginal Cost of Funds-Based Lending Rate announced by TMB on April 1, 2016, are as follows:

    Loan Tenor MCLR
    Overnight 10.05%
    1 month 10.15%
    3 months 10.2%
    6 months 10.25%
    1 year 10.3%

    Eligibility Criteria for TMB Home Loans:

    • Individual applicants should be between the age group of 18 to 50 years. In case of joint applications, one of the applicants should be below the age of 50 years.
    • Professionals such as Doctors, Lawyers and C.As can apply up the age of 60 years.

    Documentation Required:

    • Income proof in the form of IT returns, payslips or salary certificates.
    • Estimate from the civil engineer or architect
    • Title deed of the property (if applicable)
    • Approved plan of the house
    • Letter in the required format from the third party guarantor

    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.

    Frequently Asked Questions:

    1. What is the basis for ascertaining the loan amount the applicant is eligible for?

      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.

    2. Please list the tax benefits available on loan repayment.

      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.

    3. Is there an upper cap on the loan amount available for home renovation from TMB?In case of loan obtained for home renovation, the maximum loan one can obtain is Rs.25 lacs.
    4. Does the monthly salary drawn have a say in the loan repayment tenure chosen?

      The EMI (Equated Monthly Repayment) amount should not exceed 50% of the salary drawn for salaried borrowers.

    5. I am looking forward to getting a home loan from TMB for constructing a house. What is the margin?

      The margin for construction loan is 10% of the project cost as certified by an approved engineer/architect. 

    TamilNad Mercantile Bank Home Loan Reviews

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