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.
- The maximum loan amount you can get is Rs. 25,000 or 3-month gross salary of the parent, whichever is lower
- The effective interest rate for the Tamilnad Mercantile Bank Education Loan ranges from 11.10% as of October 2020
- 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
- Details not available on the bank’s website. Please check with the bank for details
- 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
- 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
- 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
- Tamilnad Mercantile Bank Website: www.tmb.in
- Headquarters: Tuticorin, Tamil Nadu
- Customer Care Toll-Free Number: 1800 425 0426