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.

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 rates of interest 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?

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?

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?

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?

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?

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.

Personal Loan Interest Rates

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