Tamilnad Mercantile Bank

Tamilnad Mercantile Bank’s Education Loan

Objective of the Scheme :

The  scheme of choice for parents who wish to educate their children in professional courses in India / Abroad and help them get graduation / post graduation in any field of choice of the student. The cost of the education can be borne by the loan from our bank.

Eligibility of the Student  :

  • Should be an Indian National.
  • Secured first class and wish for admissions in Professional / Technical / Other Courses of various studies.
  • Secured admission to foreign University Institutions.
  • Any Student who has attained the age of 18 years or Parent of the Student can avail the loan.

Studies in India :

  • School education / Graduation / Post Graduation Courses.**
  • Professional courses: Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer etc.
  • Courses like ICWA, CA, CFA etc
  • Courses conducted by IIM, IIT, IISc, XLR1, NIFT etc.
  • Courses offered in India by Reputed Foreign universities.

Studies over a Wide Area :

  • Graduation: For Job oriented Professional / Technical courses offered by reputed universities.
  • Post Graduation: MCA , MBA , MS, etc.
  • Courses conducted by CIMA-London, CPA in USA etc.
  • **When the age of the student is below 18, Loan may be sanctioned to his parents by complying the relevant condition mentioned further below.

Liability of Finance :

Expenses allotted for the Loan :

  • Fee payable to College / School / Hostel.
  • Examination / Library / Laboratory fee.
  • Purchase of Books / Equipments / Instruments / Uniforms.
  • Caution Deposit / Building Fund / Refundable Deposit supported by Institution Bills / Receipts.
  • Travel expenses / passage money for studies abroad.
  • Purchase of computers - essential for completion of the course.
  • Any other expense required to complete the course - like study tours , project work, thesis etc.

Quantum of Finance :

Need based finance subject to repaying capacity of the parents / students with margin and the following ceilings: For Studies in India - Max. Rs. 10 Lakhs, For Studies Abroad - Max. Rs. 20 Lakhs.

Margin :

  • Upto Rs. 4 Lakhs - Nil.
  • Above Rs. 4 Lakhs - Study in India - 5%.
  • Above Rs. 4 Lakhs - Study Abroad - 15%.

Processing Fee / Mortgage Charges :

1.00% of Limit sanctioned without any maximum cap for studies abroad. No processing / upfront charges may be collected on educational loans for studies in India.

Rate of Interest :

  • Upto Rs. 4 Lakhs - BR + 3.50% ( 14.25% p.a. ).
  • Above Rs. 4 Lakhs upto Rs. 7.50 Lakhs - BR + 3.50% ( 14.25% p.a. ) *.
  • Above Rs. 7.50 Lakhs upto Rs. 20 Lakhs ( With 100% Collateral Only ) - BR + 3.00% ( 13.75% p.a. ).
  • Interest Rate Concession by 0.50% if covered by 100% and above collateral security.
  • Additional Incentive of 1% in R.O.I for servicing the interest during study and moratorium period.
  • Current Base Rate for Lending ( BR ) is 10.75% p.a.

Repayment Period of the Loan :

  • Holiday / Moratorium Period: Course period + 1 year after completing the course. If the student got employed within 1 year after completion of the course, the repayment should start immediately after the expiry of one month from the date of employment.
  • Maximum Repayment period of Loan: The loan to be repaid in 5-7 years after commencement of repayment. If the student is not able to complete the course within the scheduled time extension of time for completion of course may be permitted for a maximum period of 2 years. If the student is not able to complete the course for reasons beyond his control, sanctioning authority may at his discretion consider such extensions as may be deemed necessary to complete the course

To download the Application Form, Visit the following Link :

http://www.tmb.in/forms/eduloan_01.pdf

For more Details, Kindly refer the following link :

http://www.tmb.in/retail_education_loan/get_loans_for_higher_education_in_India_abroad.html

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