Tamilnad Mercantile Bank TMB Loan Against Property

A Mortgage Loan from Tamilnad Mercantile Bank to meet your financial needs

The right loan against property to pay off your debts

Tamilnad Mercantile Bank TMB Loan Against Property

This loan helps borrowers get access to funds by mortgaging their property to the bank to meet their urgent financial needs such as wedding expenses, travel expenses, medical exigencies, higher education and so on. It is one of the most common types of retail loans that can be used to consolidate debts.

Features of TMB Mortgage Loan

Why this Loan?

  • The Tamilnad Mercantile Bank Loan Against Property is meant for borrowers who want to avail financial assistance by mortgaging their property to the bank to meet their urgent financial needs other than for capital market, business, trading or speculative purposes
  • It can also be repurposed into a consolidation loan to pay off high-interest debts

Loan Amount

  • The maximum loan amount to be sanctioned under this loan scheme is Rs. 50 lakh

Interest

  • The interest rate applicable to this loan is defined as the sum of 1-year Marginal Cost of Funds based Lending Rate (MCLR) and Spread factor of 3.00%. As of October 2020, the MCLR of TMB is 8.45% bringing the effective interest rate applicable to this loan at 11.45%

Repayment

  • Term Loan/Overdraft (Reducing Balance): This loan must be repaid within 7 years
  • Overdraft (Running): This must be repaid within 12 months. It is renewable on an annual basis, subject to terms

Margin Money (Borrower’s Contribution to Total Cost)

  • The bank may ask for anywhere from 50% to 66% of the assessed value of the property as margin for this loan

Note: Margin money refers to the amount the borrower contributes to the overall amount required. The bank will cover the rest. So, if the total amount needed is Rs. 20 lakh, and margin is 20%, then you will have to contribute Rs. 4 lakh. The bank will provide the balance of Rs. 16 lakh.

Security Needed

  • The bank asks for the pledging of non-agricultural property of 200% of the loan amount if the property is occupied by the borrower and non-agricultural property of 300% of the loan amount if the property is rented/leased by the property owner

Processing Charges

  • The bank charges 1.00% of the loan amount for processing the 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/Non Professionals: 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.
  • Property related documents

Reference Facts

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