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  • Tamilnad Mercantile Bank (TMB) Personal Loan Eligibility

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  • To be eligible for a personal loan from Tamilnad Mercantile Bank, you will need to be a permanent employee of reputed private firms, government departments, business houses, recognised educational institutions, etc., and your age should not exceed 54 years. You can avail a loan of up to Rs.2 lakh as a personal loan from Tamilnad Mercantile Bank and can repay it in a maximum period of 60 months in the form of equated monthly instalments (EMIs). A processing charge of 1% of the sanctioned loan amount will be levied on the Tamilnad Mercantile Bank personal loan.

    Eligibility Criteria for Tamilnad Mercantile Bank Personal Loan

    Who Can Avail Permanent employees of government organisations, private firms, educational institutions, business houses, etc.
    Age Below 54 years
    Other Criteria
    • The applicant should be able to provide income proof and certificate from the employer for the take-home salary
    • The applicant should get an undertaking from the employer for the deduction and remittance of the instalment from the applicant’s salary each month

    Factors Affecting Eligibility of Tamilnad Mercantile Bank Personal Loan

    • City of residence – Applicants living in metropolitan cities or big cities have higher eligibility when compared to those who stay in smaller ones. This is simply because people living in larger cities have a higher standard of living which obviously, they can afford. This assures the lenders of their higher repayment capacity and hence, they prefer lending to people residing in metros. Additionally, lenders will also look at the organisation that the applicant works for, to determine the eligibility.
    • Credit score - When you apply for a personal loan, the first thing that most lenders will look for is your credit score. Your eligibility will be higher if you have a credit score of 750 and above. A higher credit score is an indicator of your good repayment history and hence, lenders will be confident to lend to you. A high credit score may even land you lower interest rates.
    • Continuity of employment or business – Your eligibility for a personal loan will be higher if there is a continuity in your employment or business. If you are a salaried applicant, lenders will require you to be employed with the current employer for at least 1 year and 3 years of continuous employment. Similarly, if you are self-employed, you will need to be in the same line of business for at least 3 years to be eligible for a personal loan.
    • Income of the applicant – A higher income is an indication of higher repayment capacity and hence, applicants whose income is on the higher side tend to have higher eligibility. Besides the income, lenders will also look at your debt-to-income ratio to determine your eligibility for a personal loan. Your debt-to-income ratio should be low for you to qualify for a loan from Tamilnad Mercantile Bank.
    • Type of residence – The eligibility of an applicant who lives in his/own property/residence is higher as they are considered to be stable and likely to repay the loan when compared to someone who does not have a permanent residence.

    How to Increase Tamilnad Mercantile Bank Personal Loan Eligibility?

    • Maintain a healthy credit score – As stated above, credit score is one of the most important factors that lenders look for when they evaluate your eligibility. Hence, if you want to ensure higher eligibility, you should maintain a credit score of over 750 and to do that, you should check your credit score regularly. Checking your credit score will let you take corrective measures to improve your credit score if it is low.
    • Do not take too many loans at a time – If you have taken more than two loans at a time, be it a home loan or a car loan, your eligibility for a personal loan will be lower. Having too many loans gives an indication to the lender that it may be risky lending to you as you already have many EMIs to take care of. So, it is always a better idea to clear off existing loans before you apply for a new one.
    • Ensure that you maintain a low debt-to-income ratio – A debt-to-income (DTI) ratio is the percentage of your gross monthly income that is used in making your monthly debt payments. Most lenders prefer lending to individuals whose DTI ratio is lower than 40%. Hence, to enhance your eligibility, ensure that you maintain a low DTI ratio by reducing your debts.
    • Opt for a longer repayment tenure – By choosing a longer repayment tenure, you can enhance your eligibility for a personal loan. A longer repayment tenure would mean lower EMI commitment and higher repayment capacity. Hence, lenders will be happy to lend to you if you opt for a longer tenure.
    • Provide collateral – Providing collateral will increase your eligibility for a personal loan as for lenders, it is less risky lending to you. In case of any default, they can auction/sell the security/asset and recovering the outstanding amount.

    FAQs

    1. I am 55 years old. Am I eligible to get a personal loan from Tamilnad Mercantile Bank?
    2. Unfortunately, no. To avail a personal loan from Tamilnad Mercantile Bank, you need to be aged below 54 years.

    3. Am I eligible to get a Tamilnad Mercantile Bank personal loan if I do not provide collateral?
    4. Providing collateral is not a pre-requisite for a Tamilnad Mercantile Bank personal loan but if you can provide collateral, your chances of qualifying for a loan is higher. Also, in cases where your employer is not ready to provide an undertaking to deduct the EMI payment from your salary account, you will have to obtain guarantee from two creditworthy persons.

    5. Will my eligibility be enhanced if I choose a longer repayment tenure?
    6. Yes. Choosing a longer repayment tenure will elevate your eligibility because it will lower your EMI which, in turn, will translate to you paying the EMIs regularly. Please do note, however, that choosing a longer tenure may end up in you paying higher interest over the loan tenure.

    7. What is the maximum amount of loan that I am eligible for?
    8. If the instalment amount for your loan is going to be deducted by your employer or from the salary account maintained by Tamilnad Mercantile Bank, you will be eligible for a loan amount that is 6 times of your gross salary and up to Rs.2 lakh. However, if you are unable to provide an undertaking from your employer or hold no salary account with Tamilnad Mercantile Bank, you will be eligible for a loan of up to Rs.1 lakh.

    9. How do I know if I am eligible for the personal loan from Tamilnad Mercantile Bank?
    10. As stated above, anyone below the age of 54 years and who are permanent employees of government or private firms, business houses, recognised educational institutions, etc., are eligible for a personal loan from Tamilnad Mercantile Bank. If you are not sure about the eligibility, you can visit the nearest branch of the bank or call them at their helpline at +91 9842 461 461.

        

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