The Tamilnad Mercantile Bank Ltd., known for its customer focus and personalized services offers various services including two wheeler loans. TMB offers loans for purchase of two-wheelers at attractive rate of interests and features. You can purchase any type of two-wheeler by availing a loan from TMB. The bank facilitates a quick approval process as well as does not require a long list of documents, keeping the documentation process also very simple for borrowers.
TMB Bike Loan Eligibility:
The following criteria must be fulfilled in order to be eligible for a two wheeler loan from Tamilnad Mercantile Bank:
- Individual applying for the two wheeler loan should have a permanent driving license.
- Applicant should be earning a minimum yearly income of Rs.75,000 per year, including spouse’s income.
- Applicant’s employer should have an approval from the bank’s Regional Manager for the purpose of two wheeler loan.
- Self-employed, businessmen and professionals can also apply for a two wheeler loan at TMB.
Also Read: Two Wheeler Insurance.
TMB Two Wheeler Loan Interest Rate:
- The effective rate of interest offered by the bank on two wheeler loans is 15.90% per year, which is base rate plus 5.50%. This rate is applicable irrespective of the loan amount being applied for.
- The current base interest rate on two wheeler loans at TMB is 10.40% per annum.
Tamilnad Mercantile Bank 2 Wheeler Loan Features:
Given below are the important features of two wheeler loan from TMB:
- Tamilnad Mercantile Bank provides two wheeler loans that cover 75% of the on-road price of the two-wheeler.
- The loan amount will therefore depend on the price of the vehicle you choose. The bank will not cover the full amount in any case and a part of the payment, in this case 25% of the vehicle’s price will have to be covered by you.
- Loan amounts up to a maximum of Rs.50,000 can be availed under the two wheeler loan from TMB.
The bank allows maximum repayment tenure of 35 months on two wheeler loans. However, the monthly installment should not be greater than 40% of applicant’s gross income.
- If there is delay in payment of EMI towards the loan, a penalty of 2% on the loan amount is levied on the borrower.
- The penalty charges are over and above the interest rate being charged towards the two wheeler loan.
Borrower is required to pay processing charge of 1% of the sanctioned loan amount. There is no maximum limit on the processing fee.
Vehicle’s hypothecation must be financed and furnished as security to TMB bank for a two wheeler loan.
Other Terms and Conditions:
- The hypothecated vehicle towards which the loan is being taken should have proper insurance.
- The RC book should have the record of the bank’s hypothecation fees.
- The terms and conditions of the loan is subject to change depending on the loan sanctioned by the bank. Any change made by the bank is at sole discretion of Tamilnad Mercantile Bank.
- Service tax charged on all service charges will be charged extra, wherever applicable.
Documents Required for TMB Bike Loans:
Borrower should present the following documents to the bank while applying for a two wheeler loan:
- Income proof such as salary certificate, ITR (Income Tax Returns) or balance sheet or any other valid proof supporting the income mentioned as per application.
- Identity proof such as Passport, driving license or any valid government-issued ID.
- Age proof such as birth certificate or mark sheet.
- Residence proof such as electricity or telephone bill, etc.
- Copy of permanent driving license.
- A quotation from the registered vendor of the vehicle.
- A letter from the employer stating deduction of loan installment amount every month or stating that the salary be credited to the account maintained at the TMB branch.
Procedure of Applying Tamilnad Mercantile Bank Two wheeler loan:
Following is the procedure for applying for a two wheeler loan at TMB:
- Check your eligibility with the bank and if you meet all the criteria for eligibility, proceed with the application by first visiting any branch of the bank.
- You will then be required to fill in an application form and submit all the required documents along with it to the respective branch.
- Once all the proofs are verified, as per your requirement and qualification, a loan amount is sanctioned.
- Remember, loan for two-wheeler purchase is sanctioned only after eligibility is checked by determining ability to pay EMI.
- Eligibility for loan repayment or EMI is determined by considering the borrower’s income, credit history and record. If any other loan in the name of the borrower, if yes, then if the loan repayments are being done on time or not.
- What is the maximum loan amount that I can avail from TMB towards the purchase of my two-wheeler?
The bank provides a maximum of up to 75% of the vehicle’s on-road valued, up to a maximum limit of Rs.50,000.
- What is the current base rate of lending that TMB two wheeler loan can be availed at?
TMB two wheeler loan can be availed at a base rate of 10.40% per annum.
- What If I delay in making an EMI payment, will I be levied any penalty charges?
Yes, the bank charges a 2% of loan amount as penalty per year for default in EMI payment.
- What is the maximum loan tenure that I can opt for when I take a two wheeler loan from Tamilnad Mercantile Bank?
TMB offers a maximum loan tenure of 35 months on a two wheeler loan.
- How much should be my minimum net salary to be able to apply for a TMB two- wheeler loan?
Your minimum net salary should be Rs.75,000 per year including that of your spouse, to be eligible for a TMB two wheeler loan.