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TMB Education Loan

Tamilnad Mercantile Bank (TMB) Education Loan falls directly under TMB Retail Loan Products. This initiative is intended for parents or guardians who want to educate their children in professional or technical fields in India or abroad. The loan amount will be used to cover educational expenditures.

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Eligible Courses

INDIA:

  1. High School, Higher Secondary, Bachelors and Masters
  2. Professional Courses: Engineering, Medicine, Dentistry, Veterinary, Law, Computer, Agriculture etc.
  3. Courses like CA, ICWA, CFA etc
  4. Courses held by IIT, IIM, NIFT, IISc, and XLR1.
  5. Courses offered in India by known international universities.

ABROAD:

  1. Bachelors in any employment-oriented course provided by accredited universities.
  2. Masters in MBA, MCA & MS.
  3. Courses held by CIMA-London, CPA in USA etc.

Student Eligibility

  1. The prospective student must be an Indian citizen.
  2. He/ she should have achieved first class in the previous public exam.
  3. He/she should already have gotten admission in a recognized Indian or international institute or university.
  4. If the student is below age 18, loan may be approved to parents by obeying the applicable conditions.

Processing Charges

1% of the amount approved without any maximum cap for international studies is the usual processing fee. But for education in India, no such charges are levied.

Charges

INR. 100 per one lakh or part thereof. The maximum amount payable for this is INR. 500.

TMB Education Loan Interest Rates

Name of the Loan Scheme 

Rate of Interest (p.a.) 

TMB - Education Loan 

12.75% p.a. to 13.00% p.a.

TMB - Skill Development Loan 

11.75% p.a.

TMB - Super Education Loan 

12.25% p.a. to 12.75% p.a.

TMB - Education Short Term Loan 

11.75% p.a.

TMB Education - Short Term Loan for SHG members

11.75% p.a.

Repayment

  1. Window / Moratorium Period: Course duration + 1 year after completion of the course.
  2. If the student finds work within a year of finishing the course, the loan settlement must begin immediately after the one-month period from the start date of employment has expired.
  3. Maximum Repayment Tenure of Loan: The loan should be settled in five to seven years after the window period. If the student is unable to finish the course in the said time, an extension will be given for two years at the max.
  4. If the student cannot complete the course for valid reasons, the bank may or may not allow more time at its discretion.

Security

  1. Up to INR. 4 Lakhs - No collateral needed.
  2. For a loan between INR. 4 Lakhs and INR. 7.50 Lakhs - appropriate third-party guarantee required.
  3. For a loan between INR. 7.50 Lakhs and INR. 20 Lakhs – 100 percent collateral security in the form of property papers, LIC Policy, bonds, etc must be shown.

Capability Certificate:

International institutions need students to provide an official certification from their banker confirming the guarantor's creditworthiness and financial capacity, with the goal of ensuring that the sponsors can cover any unforeseen expenses until the course is complete.

Expenses Considered for the TMB Education Loan

  1. Course fee
  2. Hostel fee
  3. Exam fee
  4. Library fee
  5. Lab fee
  6. Cost of books, apparatus, laptop (if necessary), study projects and uniforms
  7. Caution Deposit & other funds
  8. Travel expenses
  9. Passage fare (For education abroad)

Disbursement of Loan

The TMB education loan will be paid in stages based on the university's requirements or demand. To get the loan accepted, all standard documentation must be submitted according to TMB Bank guidelines.

Follow Up:

The concerned TMB Branch concerned can contact the institution authorities to check on the progress of the student.

FAQs

What is the payment mode for TMB education loan?

After submitting original receipts, the money will be sent directly to the college, mess, or airline. In rare cases, if the circumstances warrant it, the money will be given to the borrowers.
Am I entitled for Central Interest subsidy scheme if I obtain an education loan under management quota?

No, education loans made under the management quota are not eligible for the Ministry of Human Resource Development's interest subsidy scheme.
Why should I get the education loan approved before securing admission in any institute?

This can improve your chances of getting an admission, especially in international universities/ colleges.
Can I begin repaying during the moratorium period?

Yes, you may begin your loan repayment during moratorium period.
Can I take an education loan without involving my parents or guardian?

Since parents/guardians are treated as co-applicants by default, this is not possible.