Tamilnad Mercantile Bank Ltd. is recognized for its customer focus and various customized services including two-wheeler loans. The bank gives credits for the purchase of two-wheelers at the lucrative rates of interest and features. The bank facilitates a quick approval process as well as it requires minimal documentation, keeping the entire process simple for its borrowers.
The below-mentioned criteria must be fulfilled to become eligible for a two-wheeler loan from Tamilnad Mercantile Bank:
1. The applicants applying for the two-wheeler loan must carry a permanent driving license.
2. The borrower should be earning a minimum yearly income of Rs.75,000 per year, including a spouse's income.
3. The applicant must have approval from the Regional Manager of the bank for two-wheeler loan.
4. Self-employed individuals, people in business and professionals can also apply for a two-wheeler loan at TMB.
The effective rate of interest provided by the bank on two-wheeler loans is 15.90% per year, which is BR + 5.50%. This rate is applied irrespective of the loan amount being provided.
The current base rate on two-wheeler loans at TMB is 10.40% per annum.
Following are the essential features of two-wheeler loan from TMB:
A. Quantum of Credit:
1. The Tamilnad Mercantile Bank provides two-wheeler loans covering 75% of the on-road cost of the vehicle.
2. The loan amount depends on the price of the two-wheeler chosen by the borrower. The bank will not cover the entire loan amount in any case as it provides loan on 25% margin of the cost of the vehicle which has to be paid by the customer.
3. The maximum loan amount of Rs.50,000 can be availed under the two wheeler-loan by the bank.
B. Repayment of Loan:
The bank allows a maximum repayment period of 35 months on two-wheeler loans. However, it takes care that the monthly EMIs should not be higher than 40% of the gross income of the applicant.
C. Repayment Default:
If there is a delay in the payment of EMI, then a penalty of 2% on the loan amount is be imposed on the borrower.
The penalty charges are levied along with the interest rate being charged on the two-wheeler loan.
D. Processing Charges:
The borrower is required to pay a processing fee of minimum 1% on the sanctioned loan amount. There is no maximum bar on the processing fee.
The hypothecation of the two-wheeler must be financed and furnished as security to TMB bank for the loan.
F. Other Terms and Conditions:
The hypothecated vehicle for which the bank is granting the loan must be insured.
The hypothecation fees of the bank should be recorded with the RC book in RTO.
The terms and conditions of the loan are subjected to change depending on the amount of loan sanctioned by the bank and the source of income of the applicant. Any amendation made by the bank in the following is at the sole discretion of Tamilnad Mercantile Bank.
The service tax charged on all services is an extra charge levied as applicable.
The borrower should submit the following documents to the bank while applying for a two-wheeler loan:
Income proof such as salary certificate, ITR (Income Tax Returns) or balance sheet or any other valid evidence supporting the income source mentioned in the application.
Identity proof such as the copy of passport, permanent driving license, or any other valid government-issued ID.
Proof of age such as a certificate of birth or mark sheet.
Residence proof such as a telephone or electricity bill.
A copy of the permanent driving license.
A quotation from the registered dealership of the vehicle.
A letter from the employer is stating the deduction of loan installment in the salary amount every month or indicating that the salary is credited to the account maintained at the TMB branch.
Following is the process for applying for a two-wheeler loan at TMB:
1. Check whether you are compatible with the bank's criteria for eligibility, and proceed with the application for loan request by visiting the nearby bank branch.
2. The applicant will be required to fill the application form and submit all the required documents along with it to the respective office.
3. Once the bank officials verify all the documents, the loan amount will be sanctioned.
4. The eligibility for loan repayment or EMI is determined by the source of income of the borrower, credit score, and past transactional record.
Q1. What is the maximum loan amount that the borrower can avail from TMB for buying a two-wheeler?
The bank offers a maximum of 75% of the on-road cost of the vehicle, maximum up to a limit of Rs.50,000.
Q2. What is the current lending base rate on which two-wheeler loan can be availed at TMB?
A two-wheeler loan from TMB can be availed at a base rate of 10.40% per annum.
Q3. If I delay the EMI payment, will I be levied any penalty charges?
Yes, the bank levies a 2% of the loan amount as penalty per year along with interest rate for default in the payment of EMI.
Q4. What is the maximum tenure of loan that I can opt for taking two-wheeler loan from TMB?
The TMB offers a maximum loan period of 35 months on a two-wheeler loan.
Q5. How much should be my minimum net salary to apply for a TMB two- wheeler loan?
The minimum net salary must be Rs.75,000 per year to be eligible for a TMB two-wheeler loan.