Tamilnad Mercantile Bank Education Loan

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Table of content

Tamilnad Mercantile bank Abroad Education Loan schemes
Tamilnad Mercantile Bank education loan schemes to study in India
Government Subsidy schemes
Tamilnad Mercantile Bank Processing Fee:
Documents Required for Tamilnad Mercantile Bank Education Loan
Tamilnad Mercantile Bank Education loan insurance
Tamilnad Mercantile Bank Loan margin calculation
How to apply for an education loan from Tamilnad Mercantile Bank?
Why go through WeMakeScholars?
Why and How to transfer your education loan to Tamilnad Mercantile Bank?
Tamilnad Mercantile Bank Education loan EMI calculation as per interest rate
Tamilnad Mercantile Bank Education Loan Repayment process
FAQ's
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Tamilnad Mercantile Bank offers education loans for courses that come under various government subsidy schemes to students wishing to pursue professional or technical courses in India or abroad in between interest rates of 9 to 14%.

Tamilnad Mercantile Bank education loan to study abroad
Tamilnad Mercantile Bank education loan to study in India

Tamilnad Mercantile bank Abroad Education Loan schemes

Tamilnad Mercantile Bank provides education loans that can go up to a maximum of 20 lakhs for students aspiring to go abroad for their studies. It is used to pay for tuition fees, exam fees, boarding, and other incidental expenses including transport. The interest rates are 12% to 14% for noncollateral loans and 9% to 11% for collateralized loans. It has a flexible grace period of up to fifteen years for the repayment plan. Other relatives eligible for co-applicant status include parents, parents-in-law, siblings, and spouses. The applicants should be Indian citizens with merit-based admission to foreign universities of their choice. This was in the form of houses, flats, land, and fixed deposits.

Parameter	Details
Loan Limit	Up to 20 lacs A higher amount can be tried depending on the course
Expenses covered	Study costs Tuition fee Fee for examination For lab/library fee To buy books Buying a computer or a laptop(if needed) Living expenses Hostel fee/accommodation cost Food expenses Other Amount for Insurance Covering travel expenses Other miscellaneous expenses
Accepted co-applicant	Parents, parents-in-law, sibling, spouse
Tamilnad Mercantile Bank Education loan interest rate	Non collateral- 12% to 14% Collateral- 9% to 11%
Moratorium Period	Course period plus 1 year or 1 year after getting a job(whichever is earlier)
Repayment Duration	Up to 15 years excluding the moratorium period
Repayment policies	Not mandatory to pay interest in the moratorium
Eligibility Criteria	Should be a national of India Should have secured a merit-based admission into a foreign university or through an entrance test
Value of Collateral (only if it is a collateralized education loan)	Collateral equal to 125% of the loan amount
Accepted Collateral	House, Flat, land, and FD

Tip: Keep in mind to consider the following before selecting your course to study abroad

Courses defined under various government subsidy schemes
Graduation: Technical or professional courses offered by top universities
Post graduation: MCA, MBA, MS, etc
Courses that are conducted by CPA in the USA, CIMA in London, etc
Degree or diploma courses in Pilot training, Aeronautical, Shipping, etc provided by recognized universities

The Tamil Mercantile bank may also offer an abroad education loan to students on the basis of an invitation or conditional offer letter. For more tips on getting the Tamilnad Mercantile education loan to study abroad, talk to a financial officer from WeMakeScholars.

Tamilnad Mercantile Bank education loan schemes to study in India

Education loans by Tamilnad Mercantile Bank are up to 10 lakhs for those students who want to study in India. The loan includes tuition fees, examination fees, accommodation fees, and transport fees among others. Interest rates vary from 12 – 14% for non-collateral loans while it is 9 – 11% for collateralized loans. It also reminds up to 15 years of the repayment period with a flexible moratorium period. The close relatives whom a person can include in the application include parents, parents-in-law, siblings, and spouses. The candidates should be Indian citizens with admission on a merit basis to Indian universities. The accepted collateral included houses, flats, land, and fixed deposit.

Parameter	Details
Loan Limit	Up to 10 lacs If the student is going to institutes like the IIM, or ISB higher amount can be considered
Expenses covered	Study costs Tuition fee Examination fee Lab/library fee Expenses for buying books Money to purchase a laptop or computer(if mandatory) Living expenses Amount to cover hostel fee or for accommodation Food Other Insurance Expenses to travel Other miscellaneous expenses
Accepted co-applicant	Parents, parents-in-law, sibling, spouse
Tamilnad Mercantile Bank Education loan interest rate	Following is the usual range of interest rate for Tamilnad Mercantile bank education loans to study in India Non collateral- 12% to 14% Collateral- 9% to 11%
Moratorium Period	Course duration+1 year or 1 year after getting job(whichever is earlier)
Repayment Duration	Up to 15 years after the moratorium period
Repayment policies	Interest payment in the moratorium period is not mandatory
Eligibility Criteria	Should be an Indian national Should have secured admission on the basis of merit or through an entrance test
Value of Collateral (only if it is a collateralized education loan)	Collateral equal to 125% of the loan amount
Accepted Collateral	House, Flat, land, and FD

Tip: Try to take up courses in top institutes like the IIM, or the ISB. You can also take courses under government subsidy schemes to avail the best education loan offers from the Tamilnad Mercantile bank. Check other education loan eligibility criteria to have the best chance of getting an education loan from Tamilnad Mercantile bank.

Be free from interest in the moratorium period by going through the Tamilnad Mercantile bank!

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Government Subsidy schemes

The government has started several schemes to promote higher education among the less privileged classes which are listed below.

Dr. Ambedkar Central sector scheme

Under this scheme, interest subsidies are provided by the government for students studying abroad

The scheme is for	Family income per annum
EBC(Economically backward classes)	Less than 5 lacs per annum
OBC	Family income less than 8 lacs per annum

Padho Pardesh scheme

Interest subsidies are provided to students from minorities(Buddhists, Sikhs, Muslims, Jains, Christians, and Zoroastrians) whose family income is less than 6 lacs per annum.

Note: The program has been ended, although beneficiaries who received benefits before March 31, 2022, will still be entitled for interest subsidies.

Central Scheme for Interest Subsidy for Economically Weaker Sections

The center has started the scheme to promote education among the Economically Weaker Sections of society. The scheme provides interest subsidies in the moratorium period to students belonging to EWS and having a family income of fewer than 4.5 lacs per annum.

Tamilnad Mercantile Bank Processing Fee:

Documents Required for Tamilnad Mercantile Bank Education Loan

To get an education loan from Tamilnad Mercantile Bank you require different documents like a filled-up application form with photographs, identity and residence proof of the applicant such as Aadhaar, PAN card, and passport and other documents of the co-applicant such as salary statements of the salaried or transactions records for self-employed. Mark sheets and admission proof are mandatory documents, and for the co-applicant, salary slips or the ITRs will also be needed. Other related documents may include fee receipts, loan statements, and any other documents about the collateral where the loan is a secured one. Take a look the the table given below:

Sections	Documents required
Section 1- Application form	Fill out the Tamilnad Mercantile bank education loan application form(provided by the WeMakeScholars Financial officer) along with your signature and 2 photographs.
Section 2- Applicant documents	Identity proof Aadhar card Pan card Passport for abroad education loan Residence proof Aadhar card Voter ID Electricity bill Telephone bill Ration card Bank account statement
Section 3- Co-applicant documents	Salaried Last 6 months' bank account statement Self-employed 1-year business transactions Personal Asset and liability statement
Section 4- Academic documents of the applicant	Marksheets Admission proof of the course with course duration clearly mentioned Fee structure IELTS/GRE/GMAT scorecard The currency ranking of the university
Section 5- Financial co-applicant income documents	For salaried Salary slips(last 3 months) The balance sheet of the last 3 yrs Address proof of the business For self-employed ITR of last 2 yrs Last 2 yrs Profit & Loss account, balance sheet and computation along with all schedules Business proof Professional qualification certificates or degree certificates for professionals like doctors, architects, CA, etc.
Section 6- Other documents	Letter that says the extra expenses will be borne by the co-applicant Notarised joint affidavit of applicant and co-applicant(format will be provided by a financial officer from WeMakeScholars)
Section 6- Additional documents(if needed)	If have paid fees in advance to the university, provide the receipt of payment Loan account statement of any pending loans If the student had any gap, explain it through 100 Rs stamp paper(ask your financial officer for the format) Collateral documents if going for a collateral loan.

A collateralized loan will require you to arrange collateral documents. However, the required documents for a collateralized loan vary by state. Check the requirements for an education loan according to the state you are going from.

Get the full list of documents required to process Tamilnad Mercantile bank education loan.

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Tamilnad Mercantile Bank Education loan insurance

The Tamilnad Mercantile bank like any other bank is keen on providing students with education loan insurance of 1 to 2% of the whole loan amount to cover the loan that they are taking.

However, you do not need to pay any amount upfront as the amount for loan insurance is usually adjusted within the loan amount. For more information talk to a financial officer from WeMakeScholars.

Tamilnad Mercantile Bank Loan margin calculation

The bank does not have any margin for loans up to 4 lacs and if the loan is under the Credit guarantee scheme, you do not have any loan margin for up to 7.5 lacs of loan.

However, the loan margin on loans above 4 lacs, which do not come under the Credit guarantee scheme are:

Loans to study in	Loan margin
India	5%
Abroad	20%

Do not be confused about the concept of a loan margin, clear off your confusion by talking to a financial officer from WeMakeScholars.

Want to include the loan margin amount in the education loan amount? We can do that for you!

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How to apply for an education loan from Tamilnad Mercantile Bank?

Apply for a Tamilnad Mercantile bank education loan through WeMakescholars for a simpler process by following the below steps.

Step 1- Request a callback from the WeMakeScholars team.
Step 2- A financial officer from WeMakeScholars will connect to you and check your eligibility by asking you a few questions.
Step 3- He/she will then send you a document uploading link and will connect you to eligible lenders
Step 4- The next process will be carried on by the assigned lenders. However, your financial officer will be in touch with you throughout the process.
Step 5- You can clear any doubt regarding the process with your financial officer.
Step 6- The lender will complete the process of your education loan and get you the sanction in the time promised by your lender.

Why should you not go directly through banks?

Incomplete information about the education loan process
Multiple visits to a bank to get the complete list of documents
The process will take time to complete
Chances of getting a loan are slimmer

Applying for an education loan is easy when its done through WeMakeScholars!

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Why go through WeMakeScholars?

WeMakeScholars is an organization that provides unbiased education loans to students wishing to pursue higher education in India or abroad. We are partnered with 14+ banks(public/Pvt) and so provide multiple options for students going through us. Students interested in an education loan can request a callback from the team.

Lower interest rates: As we are partnered with 14+ banks (public/Pvt), students going through us automatically have 0.5% to 2% lower interest rates

Faster process: We process education loans 50% faster than the average bank’s processing time.

End-to-end support: We support students throughout the education loan process from sanction to repayment, even at 12hrs different timezone.

Tax benefits: An education loan have exemptions under section 80E which the students are unaware of and hence we take the responsibility of educating them about all the tax benefits that they can avail of.

Cashback: We reward students with a cashback of ₹3000 when they go through us.

Digital: Go digital with WeMakeScholars as we prefer on completing the whole process digitally, with minimal visits to the bank. This results in less hassle compared to when you process your education loan directly through banks.

Why and How to transfer your education loan to Tamilnad Mercantile Bank?

The attractive education loan interest rates and services from the bank may entice you to transfer your education loan to Tamilnad Mercantile bank. Transfer it through WeMakeScholars, as it offers a simpler process through the following steps.

Gather the information about the outstanding of your education loan from your previous bank and request a callback from WeMakeScholars.
Tell your financial officer when he contacts you that you want to transfer your education loan to Tamilnad Mercantile bank
He/she will provide you with a list of documents. Submit those documents to the Tamilnad Mercantile bank.
The Tamilnad Mercantile bank will clear off all your dues with the previous bank and will start the education loan process with you.

Tamilnad Mercantile Bank Education loan EMI calculation as per interest rate

The below given example will help you in learning to calculate EMIs.

Suppose you have taken an education loan of 10 lacs for a course duration of 2 yrs and a moratorium period of 1 yr at an interest rate of 11% per annum. Your repayment period is of 10 years excluding the moratorium period.

Timeline	EMI	Interest portion	Principal portion	Loan Outstanding
1st year	17393	10960	6433	1189172
2nd year	17393	10215	7177	1107219
3rd year	17393	9385	8008	1015782
4th year	17393	8458	8935	913764
5th year	17393	7424	9968	799941
6th year	17393	6271	11122	672947
7th year	17393	4984	12409	531257
8th year	17393	3548	13845	373170
9th year	17393	1946	15447	196790
10th year	17393	158	17235	0

If finding it difficult to calculate your EMI, request your financial officer from WeMakeScholars to do it for you.

Tamilnad Mercantile Bank Education Loan Repayment process

The interest in the moratorium period for Tamilnad Mercantile bank is optional. The interest if not paid in the moratorium, will add up in the following EMIs.

The bank also offers students the option of closing off the loan early in the following ways.

Loan transfer to another bank
Choosing a shorter duration to repay the amount
Prepayment

Make the daunting process of an education loan simpler by going through WeMakeScholars. Request a callback today!

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FAQs:

Can I get a 4 lakh education loan from Tamilnad Mercantile bank?

You can obtain a loan of 4 lacs from Tamilnad Mercantile bank. It offers a maximum of 20 lacs for abroad studies and 10 lacs to study in India.
Can I get a 3 lacs of loan from Tamilnad Mercantile bank?

Tamilnad Mercantile can offer up to 20 lacs of loans to study abroad and up to 10 lacs to study in India.
Can I get a 100% of education loan from Tamilnad Mercantile bank?

Tamilnad bank offers 100% of education loans for loan amounts of up to 4.5 lacs and for up to 7.5 lacs if the loan is under the Credit guarantee scheme.
Who is eligible for an education loan from Tamilnad Mercantile bank?

Indian nationals going for courses under the government subsidy schemes and having gotten admission into recognized universities in India or abroad are eligible for an education loan from Tamilnad Mercantile bank.
Are there any processing fees in the City Union bank?

The Tamilnad Mercantile bank does not charge any fee to process study in Indian loans, however, there is a processing fee of 1% of the loan amount for Tamilnad Mercantile bank study abroad education loans.

Our Education Loan team will help you with any questions

Naresh Kumar
WeMakeScholars- supported by IT Ministry, Govt. of India.

Published: 23 Dec, 2022 | Updated: 07 Aug, 2024