Tamilnad Mercantile Bank
Education Loan

Yes, you can apply online through Vidyalakshmi portal to avail for this loan.

Yes, a student must have secured a minimum aggregate of 50% marks in their last qualifying examination (10+2 or Graduation)

• 0.50% concession is given to girl students
• 1% concession if interest is serviced during moratorium period

Mostly Tamilnad Mercantile bank asks tangible security in lieu of the loan amount sanctioned along with assignment of future salaries in favour of Tamilnad Mercantile Bank. Tangible security includes documents related to land/ building/ government security/ public sector bonds/ units of UTI, NSC, Life insurance policy/ bank deposits/ shares or debentures. The value of the security should be equal to the education loan amount.

Yes any scholarship or assistantship will be a part of margin charged on education loan.

Course Period plus one year, or six months after getting a job

Tenure of education loan provided by Tamilnad Mercantile Bank is 15 years

MCLR stands for Marginal Cost of funds based Lending Rate. It refers to the minimum interest rate of bank below which it cannot lend.

Expenses covered by Tamilnad Mercantile Bank education loan are:

• Tuition/ college/ hostel fee
• Examination/ lab/ library fee
• Books/ uniform/ instruments
• Caution deposit
• Passage money for studies abroad, etc.

Yes, travel expenses are covered under this loan

Yes, even if you have taken admission through management quota, you are eligible for education loan by Tamilnad Mercantile bank

Institutes that are affiliated to state/ central universities and comes under UGC or AICTE are considered as recognized institutes. Reputed institutes are those which are well known and have standard course of repute. More often, banks provide the list of institutes they consider for loan. (You can contact nearest branch for the same)

Tamilnad Mercantile Bank provides no such provision or special benefit to the students who secure admission in top premier institutes

The education loan offered by Tamilnad Mercantile Bank does not carry any processing fee or any other charges

Tamilnad Mercantile Bank charges INR 500 + taxes per cheque bounce and a penal interest @24% per annum, that is, @2% per month.

Reasonable cost for the computer or laptop well be covered under the loan if it is required to complete the course.

Answer: Pan Card is one of the mandatory document required by banks these days. It is mandatory because:

• Easy to assess Income
• Easy to trace borrowers

Yes diploma or certificate courses are eligible under Tamilnad Mercantile Bank Education Loan. Regular degree or diploma courses like, shipping, pilot training, and aeronautical that are approved by Director General of Civil Aviation or Shipping

Yes, it is mandatory to have a co-borrower to avail loan from Tamilnad Mercantile bank.

Your parent/ spouse/ guardian can be a co-borrower. A co-borrower should be your immediate family member, should have a steady source of income, and a good credit history.

Documents required from the co-borrower are:

• Attested copies of age proof, residence proof and birth date.
• Self-attested passport size photograph
• Income proof and/or copy of income tax return file
• Details of collateral security along with government approved valuation certificate (if any).

KYC requirements are the documents as a proof of personal identification and residence proof of the applicant as well as the co-borrower.

Maximum term for repayment is 15 years

You can repay the loan after the moratorium period by mode of EMI or through post- dated cheques.

EMI stands for Equated Monthly Installments. It can be calculated by using the formula given below

EMI = [P x R x (1+R) ^n] / [(1+R)^ n-1]

Here, P is Amount of Education Loan, R is Rate of Interest, n is Tenure of the Loan.

Or simply you can use the EMI calculator provision available on Tamilnad Mercantile Bank’s official website.

The loan is disbursed directly to the institute/ university that you have taken admission to. Hence, an applicant is supposed to submit institute brochure with proper division of the fee

It is completely on the banks discretion to extend the moratorium period or not. You can contact your nearest branch for the same.

The interest will be charged at simple rate from the date of disbursement till commencement of repayment of loan. After that, compound interest is charged on reducing balance. 

The interest rate is different for different category of Institutes. Refer the table below:

Tamilnad Mercantile Bank Education Loan

Short Term Loan Scheme

Skill Loan Development

Tamilnad Mercantile Bank offers CSIS Interest Subsidy Scheme initiated by government of India. The scheme is for Economically Weaker Sections (EWS) of the society, to promote education amongst them.

The documents that need to be submitted are:

• Income certificate issued by authorised authorities
• Bonafide student certificate
• Letter of undertaking or declaration signed by borrower/ co-borrower

No, the interest subsidy scheme is available only for studies applying for studies in India.

The bank takes the responsibility to cross verify all the employment details of the applicant and co-borrower. If the banks fails to cross verify every detail provided, it might reject the loan application.

Under Section 80E of Income Tax Act, loan borrowers can avail the tax benefits. This benefit is only available over and above INR 1,50,000. Tax benefits can be availed once the borrower starts paying interest on loan. The deduction is available until borrower pays off full interest amount on loan or for maximum of 8 years (whichever is earlier). You can visit the official website of Tamilnad Mercantile Bank to calculate your tax benefit through their tax benefit calculator.

It is not necessary to have a bank account while availing the loan but it makes it easier for the borrower to get loan application approved.

Yes, you can pay the amount in foreign currency (Euro, Pound, Dollar, etc.) The bank might charge an additional currency conversion fee as per RBI regulations.

The banks require insurance policy as security in lieu of education loan provided. The insurance policy should be equal or more to the amount of loan sanctioned. In case of untimely demise of the borrower, the bank recovers the amount from the insurance policy

There are no such additional benefits on availing loan from Tamilnad Mercantile Bank. Though, there are no processing or pre-payment charges applied by bank on education loan.

Credit Score is inclusive of various factors such as credit history (Loan history or credit card). If a student does not have a credit score, banks calculate it by considering factors such as University, College and the Course of admission. Banks consider the academic background of student and credit history of co-borrower.

NRIs are eligible for the loan if they have Indian citizenship and are Indian passport holder.

Visa is needed as a document proof but it is not a sole requirement.

A student who is applying for studying abroad have to give necessary documents required by the bank. One needs to have a thorough knowledge of the course they are applying for and in which institute as it can be asked on the airport by the foreign officials.

student can reach out to the nearest branch in case of any query.

Customer Care Number: +91 9842 461 461