Tamilnad Mercantile Bank (TMB) — Education Loans (India)

1. Bank Overview

Tamilnad Mercantile Bank is a private-sector Indian bank headquartered in Thoothukudi, Tamil Nadu. As of 2024, it operates around 509 branches, with modern banking technology like FINACLE across its network.

2. Education Loan Products & Coverage

Loan Schemes Available:

• TMB Education Loan: Funding for both Indian (up to ₹10 lakh) and abroad studies (up to ₹20 lakh).
• TMB Super Education Loan: High-value loans up to ₹50 lakh, especially for PG programs at premier institutions.
• TMB Skill Development Loan: Funding up to ₹1.5 lakh for vocational or short-term technical courses.

Covered Expenses Include: Tuition, hostel fees, lab/library, books, equipment, laptops, uniforms, exams, study tours, and travel.

3. Eligibility & Documentation

Eligibility Criteria:

• Indian citizens aged 18+ (possible parent as applicant if under 18), with confirmed admission to recognized programs in India or abroad.
• Courses supported span UG, PG, technical, professional, and vocational across recognized institutes.

Documents Required: Admission proof, academic transcripts, KYC, fee structure, address/income proof—all standard requirements.

4. Margin & Collateral Rules

• Up to ₹4 lakh: No security/margin required.
• ₹4 lakh to ₹7.5 lakh: Requires third-party guarantee (parents) for domestic and abroad courses.
• Above ₹7.5 lakh: Tangible collateral required (e.g., assets, government bonds etc.), or eligible under Credit Guarantee (nil margin up to ₹7.5 lakh).

5. Interest Rates & Concessions

• Base Rates:

  • Education Loan up to ₹10 lakh: MCLR + 2.25%
  • Abroad studies above ₹10 lakh: MCLR + 2.50%
  • NCGTC guaranteed loans (up to ₹7.5 lakh): MCLR + 2.00%
  • Super Education Loan (up to ₹20 lakh): MCLR + 2.5% (higher above ₹20 lakh)
  • Skill Loan: MCLR + 1.50%

• Concession: 1% interest reduction if interest is serviced during moratorium.

6. Moratorium & Repayment Terms

• Moratorium: Course duration + 1 year, or 6 months post-employment, whichever is earlier.
• Repayment Tenure: Up to 15 years for Education and Super Education Loans; Skill Loans repaid within 5 to 7 years (extendable by 2 years).

7. Processing Fees & Disbursement

• Processing Fees:

  • No processing charges for loans up to ₹7.5 lakh for Indian studies.
  • Above ₹7.5 lakh for abroad studies: 1% of sanctioned limit + GST.
  • Skill Loans and others may attract minimal fees.

• Disbursement: Done in tranches aligned with academic milestones or institution demand.

8. Quick Summary Table