Tamilnad Mercantile Bank Limited Education Loan

Learn more about our Education Loan Scheme under TMB Retail Loan Products.

This is 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 born by the loan from our bank.

 

Student Eligibility

•     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.

Eligible course of study

•     Studies in IndiaSchool 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 AbroadGraduation: 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.

Expenses considered for 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. 10.0 Lakhs, For Studies Abroad - Max. Rs. 20.00 Lakhs.

Margin

•     Upto Rs. 4.00 Lakhs - Nil.
•     Above Rs.4.00 Lakhs - Study in India - 5%.
•     Above Rs.4.00 Lakhs - Study Abroad - 15%.

Security

•     Upto Rs. 4.00 Lakhs - No Security
•     Above Rs.4.00 Lakhs upto 7.50 Lakhs Suitable Third Party Guarantee
•     Above Rs. 7.50 Lakhs and upto Rs. 20.00 Lakhs - 100% collateral in any of the form of Immovable property / NSC / Units of UTI / LIC policy / RBI Bonds or any transferable Government securities.

Capability Certificate

Foreign Universities require the students to submit a certificate from their bankers about the sponsors solvency and financial capability, with a view to ensure that the sponsors of the students going abroad for higher studies are capable of meeting the expenses till completion of studies. Charges: Rs. 100/- per lakh or part there of. Minimum Rs. 100/-, Maximum Rs. 500/-.

Rate of Interest

• Upto 4 Lakhs - BR + 3.50% (13.00% p.a.).
• Above 4 Lakhs upto 7.5 Lakhs - BR + 3.50% (13.00% p.a.)
• Above 7.50 Lakhs upto 20 Lakhs (With 100% Collateral Only) - BR + 3.00% (12.50% 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 9.50% p.a.

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