• Tamilnad Mercantile Bank (TMB) Personal Loan Interest Rates

    Tamilnad Mercantile Bank personal loans are offered at an interest rate of 14.80% 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 14.80% 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.2,369

    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 14.80% p.a. The maximum and minimum interest rates for personal loans have been pinned at 14.80% p.a.

    Other Fees and Charges

    Among the other fees and charges which are applicable to Tamilnad Mercantile Bank personal loans, the penal interest for defaults and irregular payments is charged at the rate of 2% p.a. in addition to the applicable interest rate on the outstanding balance.

    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 5 years. The applicable rate of interest on the loan amount is 14.80% 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 5 years or 60 months
    Interest Rate 14.80% p.a.
    Month Principal Paid(A) (Rs.) Interest Paid(B) (Rs.) Total Payment (A+B) (Rs.) Outstanding Loan Balance (Rs.)
    1 1,135 1,233 2,368 98,865
    2 1,149 1,219 2,368 97,716
    3 1,163 1,205 2,368 96,552
    4 1,178 1,191 2,369 95,375
    5 1,192 1,176 2,368 94,182
    6 1,207 1,162 2,369 92,975
    7 1,222 1,147 2,369 91,754
    8 1,237 1,132 2,369 90,517
    9 1,252 1,116 2,368 89,265
    10 1,268 1,101 2,369 87,997
    11 1,283 1,085 2,368 86,714
    12 1,299 1,069 2,368 85,415
    13 1,315 1,053 2,368 84,100
    14 1,331 1,037 2,368 82,768
    15 1,348 1,021 2,369 81,421
    16 1,364 1,004 2,368 80,056
    17 1,381 987 2,368 78,675
    18 1,398 970 2,368 77,277
    19 1,415 953 2,368 75,862
    20 1,433 936 2,369 74,429
    21 1,451 918 2,369 72,978
    22 1,468 900 2,368 71,510
    23 1,487 882 2,369 70,023
    24 1,505 864 2,369 68,518
    25 1,523 845 2,368 66,995
    26 1,542 826 2,368 65,453
    27 1,561 807 2,368 63,891
    28 1,581 788 2,369 62,311
    29 1,600 769 2,369 60,711
    30 1,620 749 2,369 59,091
    31 1,640 729 2,369 57,451
    32 1,660 709 2,369 55,792
    33 1,680 688 2,368 54,111
    34 1,701 667 2,368 52,410
    35 1,722 646 2,368 50,688
    36 1,743 625 2,368 48,945
    37 1,765 604 2,369 47,180
    38 1,787 582 2,369 45,393
    39 1,809 560 2,369 43,584
    40 1,831 538 2,369 41,753
    41 1,854 515 2,369 39,900
    42 1,876 492 2,368 38,023
    43 1,900 469 2,369 36,124
    44 1,923 446 2,369 34,201
    45 1,947 422 2,369 32,254
    46 1,971 398 2,369 30,284
    47 1,995 373 2,368 28,289
    48 2,020 349 2,369 26,269
    49 2,045 324 2,369 24,224
    50 2,070 299 2,369 22,155
    51 2,095 273 2,368 20,059
    52 2,121 247 2,368 17,938
    53 2,147 221 2,368 15,791
    54 2,174 195 2,369 13,617
    55 2,201 168 2,369 11,417
    56 2,228 141 2,369 9,189
    57 2,255 113 2,368 6,934
    58 2,283 86 2,369 4,651
    59 2,311 57 2,368 2,340
    60 2,340 29 2,369 0

    Mr. Diniz will have to pay an amount of Rs.2,369 as EMIs. The total amount that he would have to pay is Rs.1,43,110.

    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 5 years. The rate of interest applicable to his loan amount is 14.80% 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 5 years or 60 months
    Interest Rate 14.80% p.a.
    Month Principal Paid(A) (Rs.) Interest Paid(B) (Rs.) Total Payment (A+B) (Rs.) Outstanding Loan Balance (Rs.)
    1 2,270 2,467 4,737 1,97,730
    2 2,298 2,439 4,737 1,95,431
    3 2,327 2,410 4,737 1,93,105
    4 2,355 2,382 4,737 1,90,749
    5 2,384 2,353 4,737 1,88,365
    6 2,414 2,323 4,737 1,85,951
    7 2,444 2,293 4,737 1,83,507
    8 2,474 2,263 4,737 1,81,034
    9 2,504 2,233 4,737 1,78,529
    10 2,535 2,202 4,737 1,75,994
    11 2,566 2,171 4,737 1,73,428
    12 2,598 2,139 4,737 1,70,830
    13 2,630 2,107 4,737 1,68,200
    14 2,663 2,074 4,737 1,65,537
    15 2,695 2,042 4,737 1,62,842
    16 2,729 2,008 4,737 1,60,113
    17 2,762 1,975 4,737 1,57,351
    18 2,796 1,941 4,737 1,54,554
    19 2,831 1,906 4,737 1,51,723
    20 2,866 1,871 4,737 1,48,858
    21 2,901 1,836 4,737 1,45,957
    22 2,937 1,800 4,737 1,43,020
    23 2,973 1,764 4,737 1,40,047
    24 3,010 1,727 4,737 1,37,037
    25 3,047 1,690 4,737 1,33,990
    26 3,084 1,653 4,737 1,30,905
    27 3,123 1,615 4,738 1,27,783
    28 3,161 1,576 4,737 1,24,622
    29 3,200 1,537 4,737 1,21,422
    30 3,239 1,498 4,737 1,18,182
    31 3,279 1,458 4,737 1,14,903
    32 3,320 1,417 4,737 1,11,583
    33 3,361 1,376 4,737 1,08,222
    34 3,402 1,335 4,737 1,04,820
    35 3,444 1,293 4,737 1,01,376
    36 3,487 1,250 4,737 97,889
    37 3,530 1,207 4,737 94,359
    38 3,573 1,164 4,737 90,786
    39 3,617 1,120 4,737 87,169
    40 3,662 1,075 4,737 83,507
    41 3,707 1,030 4,737 79,800
    42 3,753 984 4,737 76,047
    43 3,799 938 4,737 72,248
    44 3,846 891 4,737 68,402
    45 3,893 844 4,737 64,508
    46 3,941 796 4,737 60,567
    47 3,990 747 4,737 56,577
    48 4,039 698 4,737 52,538
    49 4,089 648 4,737 48,449
    50 4,139 598 4,737 44,309
    51 4,191 546 4,737 40,119
    52 4,242 495 4,737 35,877
    53 4,295 442 4,737 31,582
    54 4,348 390 4,738 27,234
    55 4,401 336 4,737 22,833
    56 4,455 282 4,737 18,378
    57 4,510 227 4,737 13,868
    58 4,566 171 4,737 9,302
    59 4,622 115 4,737 4,679
    60 4,679 58 4,737 0

    In this table, we can see that the payable EMI amount is Rs.4,737. Mr. Nakipuria will be required to pay a total sum of Rs.2,86,221 by the end of his loan repayment tenure.

    Frequently Asked Questions (FAQs)

    1. How does the 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.

    2. Do I need to provide any security against my personal loan from Tamilnad Mercantile Bank?

      3. 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
    3. How can I get in touch with the Tamilnad Mercantile Bank?

      4. 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.

    4. What are the pre-requisites that I would have to provide before I apply for a personal loan through Tamilnad Mercantile Bank?

      5. 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
    5. What are the factors that the Tamilnad Mercantile Bank considers in order to check my eligibility for a personal loan?

      6. 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.

    A GST rate of 18% will be applicable on banking services and products from 01 July, 2017.

        

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