TamilNad Mercantile Bank offers eligible customers home loans up to Rs.5 crore at interest rates starting at 9.20% p.a. The loan repayment period can be extended to a maximum of 30 years excluding the moratorium period. The processing fee associated with the TMB home loans is 0.50% of the loan amount sanction (no upper limit) plus applicable taxes.
Tamilnad Mercantile Bank offers loans for purchase or construction of home, buying a new apartment, renovation, etc. They offer a loan tenure of up to 30 years.
|Loan Amount||Based on income|
|Penal Interest Rate||2% more than interest rate on outstanding|
To obtain more details on other fees and charges, visit the Processing Fees & Charges page on our website.
|Loan Scheme||Rate of interest|
|TMB Home Loan||9.20%|
|TMB Affordable Home Loan||9.20%|
|TMB NRI home loan||9.20%|
Please note that if the borrower agrees for a reset in the MCLR after every 6 months, the rate of interest applicable will be 8.95%.
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.
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.
The Marginal Cost of Funds-Based Lending Rate announced by TMB 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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