The Tamilnad Mercantile Bank offers its customers an attractive Personal Loan which would enable them to fund their personal expenses without any hassles. The loan has many notable features and comes at a competitive rate of interest. Let us discuss the loan in details:
TMB Personal Loan
Features & Eligibility
As mentioned above, the loan boasts of many a great features which can be easily enumerated below:
- It is a multi-purpose loan which can be used to finance different expenses including but not limited to marriage of a child, business expenses, indulging in a vacation, buying household articles, buying a consumer durable, meeting any emergency expenditure, etc.
- The loan is available to salaried employees employed in a permanent position in the services of Government departments, corporate organizations, business houses, educational institutions, etc.
- The age of the applicant should be lower than 54 years on the date of application
- The amount of loan which is granted by the bank under the scheme of Personal Loan would depend on the method of repayment of the loan. If the employer undertakes to deduct the loan instalments every month from the applicant’s salary account maintained with the bank and remit the same to the bank for repayment of the loan, the loan amount that will be granted would be equivalent to 6 times of the gross salary as per the latest salary bill subject to a maximum amount of Rs.2 lakhs. On the contrary, if the borrower repays the instalment from any other account other than a salary account and the employer does not undertake the deduction of the monthly salary 6 times the gross salary would be allowed as loan subject to a maximum limit of Rs.1 lakh.
- A security would be required in case of availing this loan. This security would comprise of the bank’s lien over the applicant’s salary, bonus and other emoluments. Any form of collateral security is not required. If the loan is used to purchase any consumer durables or household articles, such articles or durables would be hypothecated to the bank along with a suitable third party guarantee. This would be called the primary security for the loan. If the employer does not undertake to remit the loan instalments after deducting the same from the applicant’s salary and if no salary account is maintained with the bank, then two persons should act as a guarantor for the loan
- There are two pre-requisites for availing this loan. One is the submission of a proof of income and the certificate from the employer stating the take-home salary. The other is the undertaking from the employer to deduct the instalment payable for the loan from the salary account of the employee and remit the same to the bank as repayment if the employer agrees for the undertaking
- The maximum tenure for repaying the loan availed is 60 months or 5 years and the loan should be repaid within 60 Equated Monthly Instalments. However, the employee’s salary and his remaining years of service would be considered while fixing the maximum allowable tenure of repayment to ensure that the entire loan is paid-off within the active years of service.
The rate of interest charged on the loan also depends on the method of repayment. If the employer undertakes to repay the instalments by deducting the salary of the employee and the corresponding salary account is maintained with the bank, the rate of interest charged would be the Base Rate + 4% making it equivalent to 14.40% p.a. If no undertaking is taken by the employer and no salary account is maintained by the borrower with the bank, the rate of interest would be Base Rate +6% making it equivalent to 16.40% per annum.
If the borrower defaults in meeting the repayment instalments on the due date, a penal interest would be charged for the default. Such interest would be 2% higher than the rate of loan interest chargeable and would be charged on the outstanding balance of the loan.
1% of the amount of loan sanctioned would have to be paid as a processing fee to the bank
Must Read: Personal Loan Interest Rates Impacted by 4 Factors
Other than some simple documents including the KYC documents required, the following requirements are to be required for availing of the loan:
- Application Form
- Proof of Income and a Certificate from the Employer stating the take-home salary of the borrower
- Quotations wherever they are necessary
- Undertaking from the employer to deduct the loan instalment from the borrower’s salary or undertaking from the employer to deduct the loan instalment from the borrower’s salary account
- Any required guarantee consent letter from the third party
- Undertaking form the employer that the applicant would not be relieved from service under the regulations of the VRS scheme before taking due consent from the bank
The Initial Public Offering Finance Loan scheme is a very unique and innovative loan scheme launched by the Tamil Nadu Mercantile Bank where all the investors can enjoy financial aids of up to 50% of their IPO finance by means of liquid cash. This kind of loan process is very less time-consuming and hassle-free. If the investor acquires shares in the form of IPO, then he has the facility to pay the rest of the money in the mentioned time period. This type of loan can be processed and sanctioned in a single day. The feature of this loan scheme is also very different and unique. They are as follows:
- The main objective of this loan scheme is to cater to all the funding needs of the investors in public issues and for that purpose, the bank offers several IPO loans.
- The total measure of this loan scheme equals to Rs. 10 lakhs for a single individual.
- This loan is available to the investors in the form of Demand Loans.
- Upon receiving this loan, the investor is supposed to repay the loan within 7 days from the date of allotment of the loan.
- If the loan gets changed to Loan for Shares or even Advances against Shares, loan repayment tenure of up to 90 days is allotted to the investors.
- The total margin on the loan comes to a total of 50% of the Bid Price or Issue Price of the shares.
If the investor is either late or not able to involve in loan repayment method, he is eligible to incur a special penal interest of 2% p.a. which is more and beyond the current interest rate on the balance due with the bank.
The rate of interest for this type of loan scheme is comparatively low and pocket-friendly. This rate of interest is very competitive in nature and they are different for varied formats. The different interest rates are as follows:
- For loans against primary security of shares- BR+3.00% that comes to 13.40% per annum.
- For IPO- up to 30 days from the date of loan- BR+4.50% that sums up to 14.90% per annum.
- For IPO after the due date- BR+6.50% that comes up to 16.90% per annum.
- The present running Base Rate for Lending is 10.40% per annum.
- If in case of this loan scheme the investor is a women, a proper guarantee of the husband if that women is married and a father if the woman is unmarried is required by the bank.
- This loan scheme involves very simple, quick and trouble-free documentation procedure. The required set of document to be submitted by the investor to the bank is based on the norms and rules of the banks.
- The bank involves very nominal fee in the form of processing charge of the loan. The investor is required to bear an additional cost of Rs. 250 which is the flat rate as per IPO Loans and this charge is irrespective of the loan amount.
The TMB’s pensioners plan caters to the immediate funds’ needs of the elderly individuals by offering them urgent cash needed by them. This plan anticipates the future pension receipts of the elderly pensioners getting regular monthly pensions and releases the loans immediately. This plan holds very unique and different features. These features are as follows:
- The main objective of this plan is to provide urgent cash to pensioners getting monthly pensions in order to meet their monetary needs like paying electricity bill, telephone bill, medical expenditures, educational expenses, water charges, other family expenditures etc.
- Any individual who is an employee of Central Government, State Government, Banks, Public Sector Institutions etc and who acquires their regular monthly through the TMB branches are eligible to apply for this type of loan scheme.
- This loan plan is in the form of Overdraft in Savings Bank Account. But again, the limit on the overdraft should only be allowed at the TMB branch where the total amount of the pension is being credited.
- The total measure of this loan plan equals to 95% of the amount of pension of a single month after lessening other charges of repayments if there are any for the current loans and advances offered to the person applying for the loan.
- The total margin on this loan plan is a total of 5%.
- The investor is not required to offer any kind of security or collateral to the bank in order to apply for this loan plan.
- The current rate of interest for this loan plan depends on the Base Rate (BR). The present Base Rate for Lending is 10.40% per annum and the rate of interest becomes BR+3.75% that comes to a total of 14.15% per annum.
- If the investor fails to repay the loan on a timely basis or is unable to repay the loan at all, he becomes liable to pay a nominal penal interest of 2.00% per annum that is over and beyond the rate of interest on the remaining amount left with the Bank.
- When the investor applies for this loan scheme, he is supposed to pay a nominal charge in the form of processing fee to process the loan without difficulties. That charge comes up to 1.00% of the limit on amount offered by the bank and this processing fee has no maximum limit based on the loan amount. It may vary for varied loan amounts.
- In order to enjoy the benefits of this loan plan, the investor must provide the bank different authentic documents. This loan scheme like other schemes also requires certain documents but the process of documentation is very simple and easy. A letter of undertaking will be acquired stating that the loan borrower will not alter the authorization provided to the employer credit the total pension amount to TMB Limited during the period of the limit of overdraft.
The bank allows the applicants to deduce their repayment instalments before applying for the loan. This would allow them to know the loan’s affordability and competency before they actually undertake to avail the loan. The EMI calculator is a facility available on the bank’s website on the relevant loan page and can be easily calculated by providing the loan amount sought, the tenure chosen for repaying the loan and the applicable rate of interest charged by the bank.
Loan application process has been simplified by the bank by allowing application through the online medium. Applicants can log into Paisabazaar.com and apply for the loan online. The bank asks several personal details of the applicant to complete the online application process. Details such as the name, address, contact number, salary of the applicant, etc. are some of the important details before the bank grants the loan. These details are used to match the applicant’s eligibility criteria and in determining the amount of loan that can be granted.
Checking Loan Status
Just as the application process has been digitalized, so has been the status tracker facility. The status of the loan which the applicant has applied for can be checked online on the Paisabazaar website. The application number or the reference number would be required for carrying out the checking of the loan status and after entering the required information, the status of the loan would be displayed.