An Overdraft facility Against Gold Jewellery from Tamilnad Mercantile Bank

Take the first step towards a stress-free life

Tamilnad Mercantile Bank TMB Gold Overdraft

This Overdraft (OD) facility helps borrowers access needed funds by pledging their 22-carat gold jewellery or gold coins sold by banks. This OD can be used to meet any financial needs such as a wedding, overseas travel, higher education, etc. as well as to consolidate high-interest debts. The maximum loan amount sanctioned by the bank under this loan scheme is Rs. 10 lakh.

Features of TMB Gold Overdraft

Why this Loan?

  • The TMB Gold Overdraft is meant for borrowers who want to get funds by pledging gold jewellery/ornaments and specially-minted gold coins sold by banks to meet their financial needs
  • This OD facility can also be availed by borrowers to pay off their high-interest credit card debts and loans, thereby consolidating their debts

Loan Amount

  • The minimum loan amount sanctioned under this loan is Rs. 10,000. The maximum loan amount sanctioned by the bank under this loan scheme is Rs. 10 lakh


  • As of October 2020, the interest rate applicable to this loan may range from 8.65% to 10.15%


  • This loan is repayable within 2 years


  • Borrowers should be above 18 years of age and have a steady source of income
  • Borrowers must be the true owners of the gold ornaments/jewellery or specially-minted gold coins

Margin Money (Borrowers Contribution to Total Cost)

  • The bank charges 25% of the value at the time of sanction

Security Needed

  • The bank accepts pledging of 22-carat gold ornaments or gold coins duly verified for quality and quantity to secure this loan

Processing Charges

  • The bank charges 1.00% of the loan amount for processing this loan

Documents Needed

  • Loan Application Form duly filled and signed by the applicant and co-applicant, if any
  • Two Passport Size Photographs of applicant and co-applicant
  • Personal ID Proof: Aadhaar Card, PAN Card, Passport or Driving License. PAN Card / PAN Card Issuing Letter is must
  • Signature Proof: PAN Card, Banker’s Verification, Driving License or Passport
  • Residential Address Proof (Any One): Aadhaar Card, Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
  • Income/Banking Proof for Salaried Professionals: Last 3 months’ salary slip, Form 16 or income tax returns
  • Income/Banking Proof for Self-employed Professionals/Insurance Agents: Computation of income of last 2 years, Balance Sheet, Profit and Loss Account, Registration Certificate, GST Return, Income Tax Challan/ Form 26AS/TDS Certificate, IT Assessment, etc.

Reference Facts

  • Tamilnad Mercantile Bank Website:
  • Headquarters: Tuticorin, Tamil Nadu
  • Call Centre Number: +91 461 2321382, +91 461 2321929, +91 461 2321932