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✓ Easy apply Education Loans
✓ To study in India and Abroad
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%.
The Tamilnad Mercantile bank offers education loans of up to 20 lacs for students to pursue education abroad through the Tamilnad Mercantile bank education loan to study abroad scheme.
|
Parameter |
Details |
|
Loan Limit |
Up to 20 lacs A higher amount can be tried depending on the course |
|
Expenses covered |
Study costs Tuition fee Living expenses Hostel fee/accommodation cost Other Amount for Insurance |
|
Accepted co-applicant |
Parents, parents-in-law, sibling, spouse |
|
Tamilnad Mercantile Bank Education loan interest rate |
Non collateral- 12% to 14% |
|
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
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.
The Tamilnad Mercantile bank offers up to 10 lacs of loans to study in India through the Tamilnad Mercantile bank education loan to study in India scheme. A higher amount also can be considered if the student is pursuing courses in top institutes like the ISB, IIM, etc.
|
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 Living expenses Amount to cover hostel fee or for accommodation Other Insurance |
|
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% |
|
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 |
|
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.
The government has started several schemes to promote higher education among the less privileged classes which are listed below.
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 |
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.
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.
The Tamilnad Mercantile bank does not charge any processing fee for study in-India loans. However, there is a processing fee of 1% of the sanctioned loan amount in Study abroad loans.
The processing fee charges have to be submitted to the bank. We at WeMakeScholars do not charge any fee to process your education loans through us.
The list of required documents for an education loan differs with the type of education loan you are going with and hence check according to that. Below we have made a table of general documents that you will require to start your Tamilnad Mercantile bank education loan.
|
Sections |
Documents required |
|
Section 1- Application form |
Fill out the Tamilnad Mercantile bank education loan application form(provided by WeMakeScholars Financial officer) along with your signature and 2 photographs. |
|
Section 2- Applicant documents |
Identity proof Aadhar card Residence proof Aadhar card |
|
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) 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 |
|
Section 6- Additional documents(if needed) |
If have paid fees in advance to the university, provide the receipt of payment |
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.
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.
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.
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?
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.
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.
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.
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.
Make the daunting process of an education loan simpler by going through WeMakeScholars. Request a callback today!
Education Loan FAQsCan 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.