• TMB Personal Loan Interest Rates

    Tamilnad Mercantile Bank personal loans are offered at an interest rate of 14.05% p.a. The bank charges a processing fee at the rate of 1% of the disbursed loan amount. The loan repayment tenure can be extended up to 60 months. Tamilnad Mercantile Bank offers personal loans to permanent employees of public sectors, as well as to permanent employees of reputed business houses, corporates, educational institutions, and so on.
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    Particulars Salaried/Self-Employed
    Interest Rate 14.05% p.a.
    Processing Fee 1% of the disbursed loan amount
    Loan Tenure Up to 60 months
    Loan Amount Up to Rs.2 lakh (Terms & conditions applicable)
    Employment Status Permanent employment
    Lowest EMI per Lakh Rs.2,329

    Factors affecting Tamilnad Mercantile Bank Personal Loan interest rates

    Tamilnad Mercantile Bank personal loan interest rates are based on MCLR. The mean rate of interest for the bank is 14.05% p.a. The maximum and minimum interest rates for personal loans have been pinned at 14.05% p.a.

    Illustrations

    1. For a salary of Rs.25,000 per month

    Mr. Diniz is a government employee who draws a monthly salary of Rs.25,000. He has taken a personal loan of Rs.1 lakh from Tamilnad Mercantile Bank. He got the loan for a period of 1 years. The applicable rate of interest on the loan amount is 14.05% p.a. The amortisation schedule for the personal loan taken by Mr. Diniz is given below:

    Loan Amount Rs.1 lakh
    Processing Fee 1%
    Loan Tenure 1 year or 12 months
    Interest Rate 14.05% p.a.
    Month Principal Paid(A) (Rs.) Interest Paid(B) (Rs.) Total Payment (A+B) (Rs.) Outstanding Loan Balance (Rs.)
    1 7,810 1,171 8,981 92,190
    2 7,902 1,079 8,981 84,288
    3 7,994 987 8,981 76,294
    4 8,088 893 8,981 68,206
    5 8,182 799 8,981 60,024
    6 8,278 703 8,981 51,745
    7 8,375 606 8,981 43,370
    8 8,473 508 8,981 34,897
    9 8,572 409 8,981 26,324
    10 8,673 308 8,981 17,652
    11 8,774 207 8,981 8,877
    12 8,877 104 8,981 0

    Mr. Diniz will have to pay an amount of Rs.8,981 as EMIs. The total amount that he would have to pay is Rs.1,07,773

    2. For a salary of Rs.50,000 per month

    Mr. Nakipuria, an employee of a reputed corporate house, has taken a personal loan of Rs.2 lakh through Tamilnad Mercantile Bank. He has a monthly salary of Rs.50,000. The loan was taken for a period of 1 year. The rate of interest applicable to his loan amount is 14.05% p.a. The amortisation schedule for the personal loan taken by Mr. Nakipuria is given below:

    Loan Amount Rs.2 lakh
    Processing Fee 1%
    Loan Tenure 1 year or 12 months
    Interest Rate 14.05% p.a
    Month Principal Paid(A) (Rs.) Interest Paid(B) (Rs.) Total Payment (A+B) (Rs.) Outstanding Loan Balance (Rs.)
    1 15,620 2,342 17,962 1,84,380
    2 15,803 2,159 17,962 1,68,576
    3 15,988 1,974 17,962 1,52,588
    4 16,176 1,787 17,963 1,36,412
    5 16,365 1,597 17,962 1,20,047
    6 16,557 1,406 17,963 1,03,491
    7 16,750 1,212 17,962 86,740
    8 16,947 1,016 17,963 69,794
    9 17,145 817 17,962 52,649
    10 17,346 616 17,962 35,303
    11 17,549 413 17,962 17,754
    12 17,754 208 17,962 0

    In this table, we can see that the payable EMI amount is Rs.17,962. Mr. Nakipuria will be required to pay a total sum of Rs.2,15,546 by the end of his loan repayment tenure.

    FAQs TMB Loan Interest Rates

    1. How does the Tamilnad Mercantile bank decide the maximum loan quantum for me?
    2. Tamilnad Mercantile Bank decides the maximum loan amount on the basis of your gross salary. The maximum loan amount that you can avail is 6 times of your gross salary. However, it is subject to a cap of Rs.2 lakh. Additionally, if you do not have a salary account with the bank and are a borrower who remits the loan instalment, you will be eligible for a maximum loan amount of Rs.1 lakh.

    3. Do I need to provide any security against my personal loan from Tamilnad Mercantile Bank?
    4. Yes, you will be required to provide security against your personal loan. You can consider one of the following:

      • Lien over salary and bonus
      • Hypothecation of an asset which is being bought using the loan amount
      • Third-party guarantee if required
      • Two guarantors – in case the employer of the borrower has not undertaken to deduct and remit the instalment amount
    5. How can I get in touch with the Tamilnad Mercantile Bank?
    6. You can get in touch with the Tamilnad Mercantile Bank over the telephone as well as through email. The bank has an all-India national toll-free number which is 180 0425 0426. They also have a customer care no. which is +91 9842 461 461. You can also write to them at the following email address – customerservice@tmbank.in.

    7. What are the pre-requisites that I would have to provide before I apply for a personal loan through Tamilnad Mercantile Bank?
    8. You will be required to provide the following documents as a pre-requisite.

      • Proof of income
      • Certificate for the take-home salary from the employer
      • An undertaking from the employer for the deduction and remittance of the instalment amount
    9. What are the factors that the Tamilnad Mercantile Bank considers in order to check my eligibility for a personal loan?
    10. There are 3 main factors that are taken into consideration by Tamilnad Mercantile Bank in order to check your eligibility for a personal loan. These factors are:

      • You should be less than 54 years old.
      • You should be a permanent employee.
      • You should be a confirmed employee of any government department, reputed business house or corporate, recognised educational institution, and so on.
        

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