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Introduction

Tamilnad Mercantile Bank is almost a hundred year old bank and has grown rapidly over the years to emerge as a leading private sector bank in the country. The customer care service of the bank is also an important aspect of this journey to enable the bank in providing the most efficient and timely service to its huge customer base and resolve any of the queries or issues faced by them. The bank has many products and services for its national and international customers as well as retail and corporate banking customers. The loan products offered by the bank are considered to be among the most competitive and affordable loans available in the market and are easily accessible.

TMB provides loans for the purchase of new cars as well as used cars for the purpose of personal use or professional use.

Eligibility for TMB used car loans

Tamilnad Mercantile Bank Used Car Loan

The eligibility criteria for TMB used car loans is very broad and inclusive so as to reach the maximum customer base and provide the benefit of used car loans to the maximum number of borrowers.

The Bank has enlisted the following entities to be eligible for the TMB Used Car Loans.

  • Individuals
  • HUF
  • Partnership Firm
  • Private Limited Company 
  • Public Limited Company
  • Trust Individuals

There is no minimum income requirement or any other parameters laid by the Bank for eligibility. Customers can contact the bank for further details and the necessary terms and conditions for the same.

Documents Required for TMB Used Car Loans

The Bank requires a set of basic documents that are usually required for applying for car loans of any bank. The list includes certain KYC documents as well as certain vehicle related documents that have to be submitted along with the duly filled application form in order to process the loan application of the borrower.

The details of the documents required are provided hereunder.

  • Identity and age proof
  • Recent photograph
  • Residence proof
  • Bank statement for past 6 months
  • Form 16/ ITR and last 3 months salary slips for salaried persons
  • Audited Balance Sheet and P & L statement and Last 3 Years ITR for self-employed persons along with computation of income
  • Proforma Invoice from the authorized dealer or seller of the vehicle
  • RC copy of the vehicle
  • Insurance copy of the vehicle

Features and benefits of TMB Used Car Loans

The various features and benefits of the used car loans of the Bank that make it an attractive and a preferred option for the customers are detailed below.

Tenure – 

TMB does not differentiate the repayment schedule for new car loans or used car loans unlike many other banks in this category. The standard repayment schedule offered by the Bank for car loans is 5 years. The amount has to be paid in equal monthly installments known as EMIs. Extension of the tenure may depend on certain special or unique parameters or conditions up on the discretion of the Bank.

Amount to be sanctioned as loan – 

TMB has set the upper limit to sanction a used car loan at Rs. 15,00,000. The amount on loan that can be sanctioned to an applicant will depend to be the lower of the following parameters,

  • Rs. 15,00,000
  • 70% of the value of the car.

For this purpose the value of the car will be taken to be the lower of the

  • prevailing market value
  • Purchase value.

Rate of Interest – 

The rate of interest of the used car loans of the Bank currently is in the range of 11.10% to 14.40% per annum with effect from 15th April 2020. The rate of interest is further categorized depending on the borrowers. The details of the same are,

CategoryRate of Interest per annum
Educational Institutions11.10% - 14.40%
Commercial Purpose11.10% - 12.40%
Corporates11.10% - 12.40%

Security – 

Hypothecation of the vehicle to be purchased out of the loan given by the bank is considered to be the primary security against the loan.

Margin – 

The margin requirement of TMB is among the highest in this category and is up to 30% of the value of the car. For this purpose the value of the car will be calculated to be the lower of,

  • prevailing market value of the car
  • purchase value of the car

Fees and Charges – 

TMB has generalized all the applicable charges on the used car loans under a single category. The applicable charges on used car loans are 1% of the loan sanctioned by the Bank. This amount is strictly calculated as a percentage of the loan and is not restricted by any maximum cap or upper limit in this regard.

Customers can approach the Bank via its customer care service or directly through the branches to get further details and resolve any queries that they may have with regards to the used car loans of the Bank.

TMB EMI Calculator

TMB provides the customers the benefit of calculating or estimating the proposed EMIs on the used car loans that they will have to pay upon receiving the loan. This will enable them to plan their loan expenditure in a  better and informed manner and thus avoid any unnecessary penalty or added interest that arise in the event of non-payment or delay in payment of the loan dues. Customers can find the EMI calculator on the Bank’s Home page under the following link.

Home >> Calculators

Customers will have to provide the following details in order to calculate the proposed EMI on used car loans.

  • Number of Installments 
  • Interest Rate
  • Loan Amount

TMB Customer Care

TMB has a centralized toll free number available 24x7 for the customers to contact the bank to register their queries or issues as well as another number for similar assistance. Customers can contact the bank via email and post also apart from the above channels. Customers can find the details of the customer care channels available and easily accessible to the customers.

  • Toll free number – 1800 425 0426 (available between 10 am to 6 pm from Monday to Saturday  except on 2nd and 4th Saturdays)
  • Other contact number - +91 9842 461 461 (available from 10 am to 5.30 pm). Customers can also send the SMS ‘HELP’ from their mobile numbers to the above number and the customer care service of the bank will contact the said customer.
  • Email – customerservice[at]tmbank[dot]in

Customers can also contact the Head Office of the Bank at the following address.

Postal Address – 57, V.E. Road, Tuticorin, Tamilnadu - 628002, India

  • Telephone - +91 461 2321382 / 1929/ 1932
  • Email Id – ttn_tmbankhi[at]sancharnet[dot]in

FAQs – TMB Used Car Loans

1. What is the maximum amount of loan the bank can offer for purchase of used cars?

TMB provides a maximum loan of Rs. 15,00,000 for purchase of used car loans.

2. What is the toll free number of the Bank?

The toll free number of the Bank is 1800 425 0426.

3. What is the current rate of interest on used car loans?

The current rate of interest on TMB used car loans ranges from 11.10% to 14.40%.

4. How can an applicant repay the loan taken for purchase of used cars?

TMB used car loans can be repaid by easy monthly installments known as EMIs (equated monthly installments).

5. What security does the bank have against the loan given?

Hypothecation of the vehicle purchased is the primary security against the used car loan given by the Bank.

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