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Tamilnadu Mercantile Bank Gold Loan

Tamilnadu Mercantile Bank Gold Loan


Of Appraised Gold Value


Best Rate

Processing Fee


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Overview Tamilnadu Mercantile Bank Gold Loan

Tamilnad Mercantile Bank Gold Loan is offered at interest rates starting from 10.00%.

  • Interest rate - 10.00%
  • Loan tenure - maximum 12 months
  • Processing fees - as per the bank’s decision depending on the application type
  • Guarantor – not required
  • Pre-closure fees - as decided by the bank depending on account type

Tamilnad mercantile bank gold loan eligibility criteria

Here are the eligibility criteria for Tamilnad mercantile bank gold loan:

  • Applicant should be a minimum of 18 years old
  • Any individual who has gold, gold ornaments, gold coins that can be mortgaged with the bank can apply for this loan
  • Applicant should have a regular income (although this is optional)
  • Applicants who have a savings or current account with the bank (this is optional)

Additional read – Tamilnad Mercantile bank home loan eligibility

Tamilnad Mercantile bank gold loan documents needed

Here is the list of documents needed to apply for Tamilnad Mercantile bank gold loan:

  • Filled and signed loan application form
  • 2 recent passport-sized photographs of the applicant
  • Identity proof - Passport, Voter ID card, Driving license, PAN card, Aadhar Card, Government department ID card
  • Address proof- Bank account statement, Latest electricity bill, Latest mobile/telephone bill, Latest credit card statement, Existing house lease agreement
  • Income proof - Recent salary slip reflecting all deductions or Form 16 or Income Tax Returns of previous two financial years. Submitting income proof is optional.

Tamilnad Mercantile bank gold loan amount

The gold loan amount that can be availed from Tamilnad Mercantile bank are:

  • Minimum amount Rs. 3,000 and maximum amount Rs. 10 lakhs

Tamilnad Mercantile bank gold loan tenure

The gold loan offered by this bank is a short-term loan. As per RBI guidelines, the gold loan tenure is restricted to 1 year, meant for non-agricultural use. Some banks may offer gold loan tenures of up to 36 months. The bank returns the collateralized gold to the borrower after he/she repays the loan amount entirely.

Tamilnad Mercantile bank gold loan repayment

Tamilnad Mercantile bank gold loan repayment depends on the bank’s decision as per borrower profile. The bank mostly permits repayment through EMIs. Borrowers can also make a bullet repayment at the end of the loan tenure. If a borrower opts for bullet repayment at the end of the loan tenure, he/she will have to pay timely interest. The principal amount can be repaid through a bullet payment at the end of the term.

What are the charges applicable to the Tamilnad Mercantile gold loan?

Here are the details of all the charges applicable on Tamilnad Mercantile bank gold loan:

  • Processing fees: The bank normally charges a processing fee which can be negotiated or may be waived off in some cases.
  • Valuation fees: The bank charges a small percentage as valuation of gold pledged. This is further paid to the third-party valuer.
  • Pre-payment penalty: The bank may charge a penalty for pre-payment of a loan depending on the terms and conditions set in the loan agreement.
  • Late payment penalty: This is chargeable if a borrower delays payment of interest amount.

What factors to keep in mind before applying for a Tamilnad Mercantile bank gold loan?

In India, most people carry an emotional attachment towards gold since it is often in the form of family jewellery. Whenever one wants to avail of a gold loan, he/she must pledge this gold as collateral which may be difficult to decide upon. However, it is important to focus on current financial needs to ease any financial burden. Some of the other factors to note are:

  • A gold loan borrower must be aware of the quality of gold that can qualify for a gold loan. The purity of gold that is accepted as collateral against a gold loan must be 18-22 carats or higher.
  • No precious gems fixed in the gold jewellery are considered by banks. 
  • It is equally important for the borrowers to read the terms and conditions in the loan agreement thoroughly before going ahead with the loan.
  • If a borrower is unable to repay the gold loan on time, then he/she may lose the pledged gold or gold jewellery. This can result in undue pressure on the individual and his/her family. Therefore, it is very important that one thinks ahead on personal gold loan repayment capability.

Tamilnad Mercantile bank gold loan contact details

Here are the contact details of Tamilnad Mercantile bank for gold loan customers:

  • Official website
  • Contact numbers - 18004250426, 9842461461
  • Email address -
  • Total number of branches - 525
  • Headquarters of the bank - Tuticorin
  • Bank address - 57, V.E. Road, Tuticorin-628002, Tamil Nadu

Additional read – Tamilnad Mercantile bank credit card customer care

About Tamilnad Mercantile Bank

Tamilnad Mercantile Bank Limited is a private bank in India with its headquarters in Tuticorin. The bank was founded in 1921 and today has 525 branches across the country.

It offers a range of financial services to its customers including savings deposit, fixed deposit, recurring deposit, personal loan, car loan, home loans, education loan, gold loan, PPF account, bank lockers, etc.

End Note

Avail of a gold loan from Tamilnad Mercantile bank at reasonable interest rates and flexible loan repayment to ease any financial stress with the help of the gold jewellery you may own.

Frequently Asked Questions

1. What is the gold loan interest rate in TMB Bank?

Tamilnad Mercantile bank gold loan can be availed at an interest rate starting from 7% per annum.

2. How can I pay my TMB gold Loan Online?

To pay Tamilnad Mercantile bank gold loan online, you can login to the bank’s website using your login credentials. After going to the ‘gold loan’ section, you can select the ‘EMI payment’ option and enter the payment details before proceeding to make payment.

3. What is accepted as collateral against Tamilnad Mercantile bank gold loan?

Gold, gold ornaments or gold coins, etc. are accepted as collateral against Tamilnad Mercantile bank gold loan. This is because it can be easily liquidated in case of loan default.

4. How can I get a gold loan from Tamilnad Mercantile bank?

To get a gold loan from Tamilnad Mercantile bank, you can either apply online through the bank’s website or visit one of the bank’s branches.

5. What is the eligibility for a gold loan?

Any individual above 18 years of age and in possession of gold or gold jewellery can apply for a gold loan from Tamilnad Mercantile bank.

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