Looking for a Suitable Education Loan from Tamilnad Mercantile Bank for Postgraduate Studies?

Look no further. This page summarises the information you will need on this Tamilnad Mercantile Bank Super Education Loan for Postgraduate Studies in India or Abroad

Tamilnad Mercantile Bank Super Education Loan (for Postgraduate Studies in India and Abroad)

This Tamilnad Mercantile Bank study loan helps students finance their postgraduate education from recognised educational institutions in India or abroad. The maximum loan amount you can get is Rs. 10 lakh for studying in India and Rs. 50 lakh for studying abroad.

Features of Tamilnad Mercantile Bank Super Education Loan

Why this Loan?

  • The loan is meant to help students who have secured admission into a postgraduate course in a recognised institution in India or abroad through Entrance Test or Merit-based selection process
  • This Tamilnad Mercantile Bank Super Education Loan is disbursed as a series of payments over the required number of years and not as a lump sum
  • 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. 10 lakh for studying in India and Rs. 50 lakh for studying abroad


  • The effective interest rate for the TMB Super Education Loan is 11.15% as of November 2020
  • The interest rate is the sum of the Marginal Cost of Funds Based Lending Rate (MCLR) which as of November 2020 stands at 8.65% and a spread of 2.50%


  • The maximum repayment period for this loan is 15 years
  • The loan amount for each year is repayable in 12 EMIs
  • The moratorium period for this loan is course duration plus 12 months or course duration plus 6 months after landing a job, whichever is earlier

Security Needed

  • Tangible collateral equivalent to 125% of the loan amount is mandatory
  • Fixed assets that can be provided as collateral include land or building while movable assets may include government securities, gold, shares, debentures, mutual funds, bank deposits in the name if the student or parents


  • The applicant must be an Indian national
  • The student should have gained admission into a recognised PG course in a recognised institution in India or abroad through an entrance test like CAT, GATE, PMT, or other entrance tests or in a PG course in medicine in any college with or without entrance tests

Eligible Courses

  • Postgraduate courses in reputed institutions including private institutions of repute, admission to which have been through entrance tests or merit-based selection processes. The entrance exam may be CAT, GATE, PMT or other entrance tests
  • Postgraduate courses in medicine in any college with or without entrance tests

Borrower Contribution to Total Cost (Margin Money)

  • Tamilnad Mercantile Bank asks for margin money contribution of 10% for studying in India
  • The bank charges 20% as margin money for students who have got through to a course abroad

Note: Margin money refers to the amount the borrower contributes to the overall amount required. Suppose a course costs Rs. 10 lakh and the borrower has to pay 10% margin, then she will pay Rs. 1 lakh (10% of Rs. 10 lakh). The bank will cover the rest.

Processing and Other Charges

  • Borrowers need to pay a charge of 1.0% of the total loan amount
  • There is no maximum cap on this amount. For example, if the loan is for Rs. 40 lakh, the borrower will have to pay Rs. 40,000 to TMB for processing the loan

Uses of the Loan

  • College, school and hostel fees
  • Examination, library and laboratory fees
  • Caution deposit, building fund or refundable deposit supported by institution bills or receipts
  • Cost of books, equipment, instruments, uniforms
  • Purchase of computer, if required for the course
  • Travel expenses including passage money for foreign studies
  • Insurance premium for the borrower student, if applicable
  • Other expenses needed for completing the course such as study tours, project work, thesis, etc.

Other Features to Know

  • The bank may ask for the student’s progress reports to be submitted with the bank at regular intervals before disbursal of the next instalment
  • The loan is disbursed directly to the school, bookseller or publisher, computer seller, and so on and not to the applicant(s)

Documents Needed

  • Application Form duly filled and signed by applicant and/or guarantor along with details of applicant and/or guarantor and family
  • A declaration/ affidavit from the borrower confirming that, no educational loans have been availed from other banks
  • Two Passport Size Photographs of student, applicant and/or guarantor
  • Photocopy of PAN Card of the student that needs to be submitted at the time of application or during the course period
  • 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
  • For the co-borrower, documents as age, ID, signature, address, employment/business/income proofs are required
  • For studying abroad, a self-attested copy of the passport is also required along with a self-attested form issued by the institute for visa purposes

Reference Facts:

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