About Tamilnad Mercantile Bank Personal Loan
Tamilnad Mercantile Bank offers personal loans for individuals to use the loan amount to buy household appliances, marriage expenses, family expenses or emergency. The documentation process is simple and fast. Tamilnad Mercantile Bank offers personal loan to permanent employees who are confirmed in the services of government departments, corporate or business houses or in a recognised educational institutions. The primary security is the consumer durables, there is no need to provide a collateral. If the EMI is not deducted from your salary account then a suitable guarantee from two people should be obtained.
Tamilnad Mercantile Bank Personal Loan interest rates
Tamilnad Mercantile Bank personal loan interest rates depends the borrower’s on income, borrower’s credit history, the RBI rates, inflation etc. Tamilnad Mercantile Bank personal loan interest rate for the year 2015 is 14.60 percent per annum. The bank ensures that the interest rates is not burdening the borrower.
Tamilnad Mercantile Bank Personal Loan interest rates table:
| Interest rates |
If the EMI is deducted from borrower’s salary account: 14.60 percent per annum
No undertaking received from the employer: 16.60 percent per annum
When land or building to the extent of 100 percent of the loan is provided as a collateral: 14.60 percent per annum
When land or building to the extent of 50 percent of the loan is provided as a collateral: 16.10 percent per annum |
| Loan amount |
Maximum loan amount is Rs.2 lakhs if the EMI is deducted from salary account
If there is no undertaking from the employer, the maximum amount loan amount is Rs.1 lakh. |
| Loan tenure |
Minimum tenure- 1 year
Maximum tenure- 5 years |
EMI per lakh (lowest interest rate and maximum tenure)
Calculate EMI on your Personal Loan |
Rs.2,358 per month |
| Base rate (w.e.f. 16th July, 2015) |
10.60 percent |
| Prepayment charges |
2 percent of the balance outstanding |
How to calculate interest or EMI on Tamilnad Mercantile Bank Personal Loan?
EMI or Equated Monthly Instalment is the amount that the borrower has to pay back to the bank this consists of a part of the interest amount and the principal amount. The principal amount and interest is divided by the tenure that the loan was taken for. The formula to calculate the EMI is:
EMI= Principal X Rate of interest on a monthly basis X (1+rate of interest on a monthly basis) to the power of the loan tenure divided by [(1+rate of interest on a monthly basis) to the power of the loan tenure – 1]
To make the EMI calculation easy, you can use the free online EMI Calculator available on BankBazaar.com. You get an amortization table that contains details of how much of the EMI amount is going towards the principal amount payment and how much of it covers the interest amount.
For example, Mr. John has taken a personal loan for Rs.1 lakh from Tamilnad Mercantile Bank. The interest rate he is being offered is 14.60 percent for a tenure of 5 years. By the end of the fifth year, he would have paid Rs.41,483 towards total interest and his loan EMI is Rs.2,358. He will be paying 29.3 percent towards the interest and 70.7 percent towards the principal loan amount. His amortization table will look as follows:
| Year |
Principal paid (in rupees) |
Interest paid (in rupees) |
Balance amount (in rupees) |
| Year 1 |
14,651 |
13,645 |
85,349 |
| Year 2 |
16,940 |
11,357 |
68,409 |
| Year 3 |
19,585 |
8,711 |
48,824 |
| Year 4 |
22,644 |
5,653 |
26,180 |
| Year 5 |
26,180 |
2,116 |
0 |
Factors affecting Tamilnad Mercantile Bank Personal Loan interest rates
Tamilnad Mercantile Bank personal loan interest ratevaries for every applicant due to the following factors:
- Loan tenure:
If the loan tenure is short, the interest rate is high when compared to loans with a longer tenure.
- Repayment capacity:
Tamilnad Mercantile Bank checks a person’s repayment capacity before offering him a loan and before deciding the interest rate. The bank will make sure that after paying the EMI, you will have enough money to live comfortably for the remaining days in the month. The bank also looks into the borrower’s assets and his creditworthiness before finalising on an interest rate.
- Borrowing class:
Banks prefer to give loans to those who have a constant income and they try and stay away from young applicants as they are not so stable at their job. Tamilnad Mercantile Bank offers personal to permanent employees who are confirmed in the services of government departments, corporate or business houses or in a recognised educational institutions.
- Relationship with the bank:
If you have a good and long relationship with the bank then you may even get a discount on the processing charges or might get a reduced interest rate. You can also get a discount on the prepayment charge as well.
The interest rates and processing charges are charged at the sole discretion of the bank and are subject to change.
How CIBIL score affects Tamilnad Mercantile Bank Personal Loan interest rates?
CIBIL Score and credit report plays a major role in deciding an applicant’s interest rate. CIBIL report is a document that includes all your repayment history of the credit that you have taken in the past. Banks usually accept application of individuals having an ideal credit score of 750 and above. Those with a lower score will be termed risky and the bank might offer personal loan at a higher rate of interest. Therefore check your credit score before you apply for a loan. If your score is low, then you can fix the score before applying for a loan.
Key things about Tamilnad Mercantile Bank Personal Loan interest rates
Before applying for a Personal Loan, you must know the following factors:
- Fixed interest rate is when a fixed rate of interest is set on the personal loan and you will be required to pay a fixed amount of interest throughout the tenure.
- Floating interest rate will change as per the change in the bank’s base lending rate. The EMI will keep changing with the changing rate.
- To avail Tamilnad Mercantile Bank Personal Loan, you must provide security. The primary security is the consumer durables itself. There is no need to provide a collateral. But, if the EMI is not deducted from your salary account then a suitable guarantee from two people should be obtained.
- When the repo rate goes up, your interest rate will also go up.
- Tamilnad Mercantile Bank offer personal loans to permanent employees who are confirmed in the services of government departments, corporate or business houses or in a recognised educational institutions.
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