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Car Loan

Tamilnad Mercantile Bank – Overview


Tamilnad Mercantile Bank (TMB) Limited, then Nadar Bank Limited was registered in May 1921 by a group of enthusiastic men, who constituted as the Board of Directors of the bank. Shri M.V. Shanmugavel Nadar was elected as the first Chairman of Tamilnad Mercantile Bank. The Bank changed its name to Tamilnad Mercantile Bank to widen its scope beyond the Nadar community. TMB is the only bank in India declaring constantly higher rate of dividend to its shareholders from the beginning. TMB has been honored with the ‘Best Bank Award’ among all Private Sector Banks under the Atal Pension Yojana for the year 2015 to 2016.


The bank, headquartered in Tuticorin (Thoothukudi) in the state of Tamil Nadu in India, started off with having only 4 branches until 1947 at Madurai, Tuticorin, Virudhunagar and Sivakasi. Today, it has 487 full-fledged interconnected branches all over India. Further, the bank has 10 Regional Offices, 4 Currency Chests, 6 Central Processing Centers, 1 Service Branch, 11 Extension Counters, and 1019 ATM throughout the country. The bank offers a variety of products that include deposits and loans.  Tamilnad Mercantile plans for vehicle loans for four and two wheelers, personal loans, home loans, and education loans are among the common offerings.


Tamilnad Mercantile Bank Car Loan


Car loan from Tamilnad Mercantile Bank is among the popular of all the retail loan schemes since it offers pre-approved car loans, quick processing of loans for the purchase of new cars at low interest rates and simple documentation. TMB provides car finance plans for new and pre-owned cars for both personal and commercial use. Quick processing, competitive car loan interest rates and easy documentation make the car loan schemes of Tamilnad Mercantile an attractive deal. The bank offers high car loan amount eligibility to its customers, which helps them in fulfilling their dream of owning the best car.


Features of Tamilnad Mercantile Bank Car Loans
 

The attracting features of car loans offered by Tamilnad Mercantile Bank that make them a popular choice among car loan borrowers are:
 

  • Purpose

-For finance of Tamilnad Mercantile Bank loan for a new car for personal or professional use


-To buy pre owned cars not more than 4 years old
 

  • Loan Quantum

-Up to Rs.150 Lac for new car


-Up to Rs.15 Lac for pre-owned car
 

  • Margin is 15% of “On Road Price” in case of a new car and 30% of the market value of pre-owned cars whichever is lower.
  • Repayment tenure for a car loan is up to 5 Years
  • The bank approve and disburse car loans swiftly
  • Processing Charges- 1.00% of limit sanctioned without any upper limit
  • Prepayment Charges- At the rate of 0.25% of amount prepaid

Eligibility

Eligibility requirements for Tamilnad Mercantile car loan include the following parameters depending upon the applicant’s age, income and employment characteristics:
 

  • Individual / HUF / Partnership Firm / Limited Company / Trust Individual with minimum gross income of Rs.1,20,000 p.a. (including the income of the spouse)
  • For others: debt service coverage ratio should be 1.50:1 or more.

Salaried individuals:
 

  • Minimum age of Applicant: 21 years.
  • Maximum age of Applicant at loan maturity: 58 years.
  • Minimum employment: 1 year in current employment and minimum 2 years of employment.
  • Minimum Annual Income: Rs.1,20,000 net annual income.

Non-Salaried individuals:
 

  • Minimum age of Applicant: 21 years
  • Maximum age of Applicant at loan maturity: 65 years
  • Minimum employment: At least 3 years in business
  • Minimum Annual Income: Net profit Rs.60000 p.a for standard cars and Rs.100000 p.a. for mid-sized and premium cars

Partnership firms/ Public and Private Limited Companies:
 

  • Minimum Income: Net profit Rs.60000 p.a for standard cars and Rs.100000 p.a. for mid-sized and premium cars.
  • Minimum turnover: Turnover Rs.4.5 lakh.

Check your Car Loan Eligibility
 

Eligibility for Tamilnad Mercantile car loan depends upon various factors. These factors also determine your car loan amount eligibility:
 

  • Income levels: Higher the income better the chances for a higher loan amount
  • Income regularity: Regular income improves chances for loan approval
  • Kind of Car: New car finance plans are more easily available than used cars; a high-end car model will be expensive which means the borrower has to be able to pay the portion not funded by the loan (LTV ratio)
  • Longer tenures will enhance repayment capacity

Save your precious time by checking your eligibility for Tamilnad Mercantile car loan at PaisaBazaar using our Tamilnad Mercantile car loan eligibility calculator.

Tamilnad Mercantile Bank Car Loan Interest Rates

Tamilnad Mercantile Car Loan interest rates with effect from October 01, 2016 are as follows:

  • Current Base Rate (BR) is 10.40% p.a.
     

Tenure period

Applicable interest rate

Up to 36 Months

BR + 1.00% (11.40% p.a.)

Over 36 months & up to 60 Months

BR + 1.25% (11.65% p.a.)

 

Additional Fees and Charges

Stamp Duty

At actuals

Late Payment Penalty

2% per month

Processing fees

1% of the principal amount

CIBIL Charges (only on request)

Rs.50/-

Loan Re-scheduling charges

Rs.1000/-


Repayment of the Car loan


Repayment is the periodic installment you make to pay off the car loan borrowed. There are several ways to pay back your loan including regular EMI, step-up or step-down EMI among many others. The borrowed car loan amount is payed back to the lender bank in the form of Equated Monthly Installments or EMI, which is a fixed amount of monthly car loan payments, containing both the principle amount and the applicable interest, made to the lender at a specified date each calendar month, until the full loan amount is paid off. The Tamilnad Mercantile Bank Car Loan EMI amount applicable is Rs.1665 per lac for tenure of 7 years, that is, 84 installments at Tamilnad Mercantile car loan interest rate of 10.10% per annum.


To avoid any confusions and last moment panics later, you must be in the clear about the repayment method you choose before signing the car loan agreement and deciding it mutually with the lender prior to the beginning of your repayment period. Following are the commonly offered EMI amount repayment methods:
 

  1. Electronic Clearing System (ECS)

This mode is for customers who do not have a Tamilnad Mercantile Bank account and order their respective banks to deduct the EMIs form their accounts and transfer the same to Tamilnad Mercantile Bank against loan repayment.
 

  1. Standing Instructions (SI)

This mode is the most common, available to existing Tamilnad Mercantile Bank account holders of the bank, be it individuals holding a salary account, current account and even a savings account with Tamilnad Mercantile Bank  can give fixed instructions to the bank to automatically debit the EMI amount every month from their respective accounts.
 

  1. Post-Dated Cheques

This too is a mode beneficial for individuals not having a Tamilnad Mercantile Bank account. They need to submit a set of Post-dated Cheques out of their respective accounts. These cheques will automatically be released by the bank itself as and when they fall due.

Documents Required

A Car loan is the best way out if you are having limited finance and wish to buy a car. You have this option of getting financial help from banks and Non-Banking Financial Companies, provided you are eligible for a car loan offer by the particular bank or NBFC. Documentation is a necessary part of a loan application process and banks require every applicant to submit complete documents for approval of the loan. Documents required for a Tamilnad Mercantile car loan may differ from profile of the loan subscriber. For example, salaried and self-employed individuals may need to submit different income documents. Once these are submitted with the bank, your loan can get an approval, after verification and crosschecking your submissions. Required documents for Tamilnad Mercantile car loan include:
 

  • Dully filled and signed Tamilnad Mercantile car loan application form
  • Latest 6 months bank statement
  • Copy of PAN Card
  • Current Address Proof - Voter’s ID card, Passport or Aadhaar Card
  • Proof of Identity
  • Passport size Photographs
  • 3 months’ salary slips with Form 16 (for Salaried Individuals)
  • 2 years ITR (for Self-employed Individuals)
  • Car Quotation from Showroom

Relation between your CIBIL score and Tamilnad Mercantile Bank Car Loan


For most banks, the applicant’s CIBIL score is one the most important factors of determining the eligibility and approval of an application. At Tamilnad Mercantile Bank also, car loan subscribers are expected to hold a good credit score along with the required minimum financial support to qualify for Tamilnad Mercantile car loan eligibility. A customer who has a credit history reflecting volumes of liabilities and debts and irregular payment patterns, pre-borrowed loans etc. might face rejection or might be offered higher rates of interest on car loan provided by Tamilnad Mercantile Bank. On the other hand, a higher credit score will surely boost up your credit worthiness and hence, improve your application profile before the lender, assuring you lower and better interest rates on your car loan application.

Things to Consider Before Buying a Car

Finding the car that takes care of your needs and desires, also fitting your budget at the same time, is not very easy. There must be a number of questions popping up in your head if you are planning to buy a car for yourself like should you buy a New or a Used Car? And maybe, how can a car loan from Tamilnad Mercantile Bank or some other bank benefit you? Buying a new or a used car totally depends on some major factors like the purpose of buying a car, your budget constraints, the maintenance cost involved and performance versus looks.


New car or a used car- this is the most common question among car buyers. Reason being, cost of a used sedan from a reputed automobile manufacturer can sometimes be equal to the cost of a new hatchback. In such situations, most people tend to get tempted to possess the bigger car with a better brand. However, understanding the pros of both the car types is important before deciding upon the final car.


Benefits of a new car:
 

  1. Brand new cars come with a comprehensive manufacturer's warranty that generally, last for three years or 36,000 miles while some also go to 10 years or 100,000 miles and covers almost any eventuality.
  2. A new car is likely to have the latest safety, convenience and comfort and advanced features.
  3. You will be the first owner of a new car and therefore, there will be no surprises or doubts regarding mechanical problems or accidents in the past.

Benefits of a used car:
 

  1. Buying a pre-owned car costs significantly cheaper than a new car.
  2. The comprehensive costs and theft insurance amounts attached with a used car are likely to be less.
  3. The rate of depreciation of used cars will be less over time, which is generally high in the first two years of ownership of a new car.

A buyer will be able to get a luxury model of a used car for the same price as a new plain Jane version of another car.

Calculating EMI for Tamilnad Mercantile Bank Car Loan

The Tamilnad Mercantile Car Loan EMI Calculator allows you to calculate EMI for Tamilnad Mercantile Bank Car Loans in a simple and hassle-free manner, without those mathematical calculations. Also, calculation of your car loan EMI is quick and simple with Paisa Bazaar Car loan EMI calculator. Our Car Loan EMI Calculator tool is specifically designed for calculation of the EMI applicable on your Axis Bank car loan. The tool, within seconds, presents to you the due total interest and installments to be paid to the bank monthly. You need to keep your Tamilnad Mercantile Bank car loan details like the loan amount, interest rate, processing fee and desired tenure handy, while using the car loan EMI calculator.


Our EMI Calculator works by first calculating the compound interest on the principal amount of the loan at the offered car loan interest rates. The calculation proceeds by fallowing the rule of paying the interest component first, on the total amount payable, and the remaining part of your EMIs is the principal.


EMIs are computed using the following mathematical formula.


Monthly payable installments = [Principal X ROI X (1 + ROI) ^ No. of installments] / [(1 + ROI) ^No. of installments – 1]


Equated Monthly Installments are a combination of the principal component and the interest component. So, if the rate of interest per annum is 12%, then the car loan interest rate per month will be 12/ (12 x 100). These calculations may look complicated to you, but using a Tamilnad Mercantile car loan online EMI calculator, you can get the accurate results without any hassles or numerical errors which are prone to occur in manual calculations, before applying for the Tamilnad Mercantile Bank Car Loan.

Why apply for a Tamilnad Mercantile Bank Car Loan on Paisa Bazaar?

Reasons to apply for a Tamilnad Mercantile Car Loan through us are:
 

  • We are one stop for a diversity of Products, offering multiple choices of best car loans in India for every requirement specified.
  • Paisa Bazaar keeps you updated with the lowest available car loan interest rates and other products offered by the best banks in the market.
  • By letting you fill up an online form about the kind of loan you desired, Paisa Bazaar evaluates the perfect options and deals on car loans for you.
  • In order to decide the best for you, you can compare loans from different Banks against each other for parameters like rate of interest offered, EMI options available, processing fees charged, customer feedback, etc.
  • PaizaBazaar lets you apply for a car loan online, saving your time and efforts, without you having to step out of your comfort zone while sitting in your home or office.
  • Personal information is treated with high regard and kept very confidential at Paisa Bazaar.