Looking for a Short-term Education Loan from Tamilnad Mercantile Bank to Fund Your Child’s Education?

Look no further. This page contains all the information you will need on Tamilnad Mercantile Bank’s Short-term Education Loan.

Tamilnad Mercantile Bank Short-term Education Loan

ThisTamilnad Mercantile Bank study loan help parents finance their child’s education.The maximum loan amount you can get is Rs. 25,000 or 3 month’s Gross Salary of the Parent, whichever is lower. This Tamilnad Mercantile Bank Short-term Education Loan is disbursed as a series of payments over the required number of years and not as a lump sum.

Features of Tamilnad Mercantile Bank Short-term Education Loan

Why this Loan?

  • The loan is meant to help parents pay for their child who has secured admission into a school, Under Graduate course, Diploma or Post Graduation course
  • The loan can be taken for all expenses directly related to the course including for fees, purchase of books, laptops, hostel fees, lab fees, examination fees, etc.

Loan Amount

  • The maximum loan amount you can get is Rs. 25,000 or 3-month gross salary of the parent, whichever is lower

Interest

  • The effective interest rate for the Tamilnad Mercantile Bank Education Loan ranges from 11.10% as of October 2020

Repayment

  • The maximum repayment period for this loan is 1 year
  • The loan amount for each year is repayable in 10 to 12 monthly instalments
  • There is no moratorium period for this loan

Security Needed

  • Details not available on the bank’s website. Please check with the bank for details

Eligibility

  • The applicant must be an Indian national
  • The student should have gained admission into a recognised higher education course in a recognised institution in India or abroad through Entrance Test or Merit-based Selection process
  • The applicant/co-applicant must have a minimum net income of Rs. 1.5 lakh per annum

Eligible Courses

  • School Education including Class 12 stage
  • Graduation courses in Art, Science and other streams
  • Evening Courses of approved Institutes (the list of these is not available on the bank’s website as of October 2020)
  • Diploma or Post Graduate courses conducted by colleges and universities approved by UGC, AICTE, etc.

Borrower Contribution to Total Cost (Margin Money)

  • As of October 2020, this information is not available on the bank’s website. Please check with the bank for details

Note: Margin money refers to the amount the borrower contributes to the overall amount required. Suppose a course costs Rs. 40 lakh in which case the borrower will have to pay 5% of Rs. 40 lakh which is Rs. 2 lakh. The bank will cover the rest

Processing and Other Charges

  • 1.00% of the loan amount must be paid as processing charges to the bank

Other Features to Know

  • The bank may ask for the student’s progress report to be submitted with the bank at regular intervals
  • The loan is disbursed directly to the school, book seller or publisher, computer seller, and so on and not to the applicant(s)
  • The bank charges a penal interest of 2% in case of default or delay in repayment of loan

Documents Needed

  • Application Form duly filled and signed by applicant along with details of student
  • Two Passport Size Photographs of student and applicant
  • Personal Identification Proofs (Any One): Electoral I-Card, Passport, Driving License, PAN Card or Aadhaar Card
  • Residential Address Proof (Any One): Electricity Bill, Landline Telephone Bill, Electoral or Voter ID Card or Passport
  • Admission Letter, Course Details and Prospectus as proof of admission
  • Fee Details with Demand of Fee by the Institution
  • All Proofs of Past Academic Record including Mark Sheets and Certificates
  • Applicant’s proof of income and certificate from the employer for the Take Home salary

Reference Facts:

  • Tamilnad Mercantile Bank Website: www.tmb.in
  • Headquarters: Tuticorin, Tamil Nadu
  • Customer Care Toll-Free Number: 1800 425 0426