Tamilnad Mercantile Bank Business Loan

Please Note: Tamilnad Mercantile Bank is not a Paisabazaar partner. Offers would be from partner banks/NBFCs only.

Tamilnad Mercantile Bank (TMB) is considered as one of the fastest growing private sector banks in India. The bank specialises in providing banking and financial services to its customers nationwide. Being a provider of banking products, bank focuses on offering types of business loans along with other loan products. The trader/service loan interest rate offered by bank starts from 10.80% p.a. onwards. Trader/Service Loan offered by Tamilnad Mercantile Bank is suitable for all general business community and MSME sector.

Tamilnad Mercantile Bank – Trader / Service Loan
Interest Rate	10.80% onwards
Loan Amount	Max. Up to Rs. 50  lakh
Processing Fee	0.50% of the loan amount + taxes
Repayment Tenure – Term Loan	Up to 84 months (capex)
Repayment Tenure – Demand Loan	Up to 35 months
Repayment Tenure – OD	Fresh loans – Up to 60 months
Margin	Up to 20%
Penal Interest	1% p.a. over and above the rate of interest on the balance outstanding

Note: The mentioned interest rates, fees and charges are subject to change and depend on the sole discretion of the bank and RBI. GST and service tax shall be levied extra on the mentioned charges.

The loan amount can be used to meet working capital needs of retails, traders, manufacturers, Micro and Small Enterprises, small businesses, and professional & self-employed people. Tamilnad Mercantile Bank’s Trader/Service loan can be availed by individuals, proprietorships, partnership firms, Limited Liability Partnerships (LLPs) and Private Ltd. Companies engaged in any trading and/or service activity.

Tamilnad Mercantile Bank – MSME Credit Scheme
Interest Rate	9.80% onwards
Max. Loan Amount – Single Borrower	Up to Rs. 25 crore
Max. Loan Amount – Group Borrowers	Up to Rs. 50 crore
Repayment Tenure	Working Capital – 1 year (Renewable) Term loan – Max. up to 7 years
Processing Charges	1% of the loan amount + taxes
Prepayment Charges	Term Loan – 2% of outstanding amount + Taxes Working Capital – 1% of limit + taxes
Primary Security	Working Capital Limits: Stock and receivables Term Loan: Assets Acquired
Collateral Security	Nil on loans up to Rs. 10 lakh offered to MSEs
Documentation Charges	Nil up to Rs. 25 lakh

Note: The mentioned interest rates, fees and charges are subject to change and depend on the sole discretion of the bank and RBI. GST and service tax shall be levied extra on the mentioned charges

Also Check – Current rate of interest on business loan

Features of MSME Credit Scheme

• Scheme offers both fund based and non-fund based loans
• Provides funding to MSMEs at attractive interest rates to meet their working capital needs
• Scheme can be availed by individuals, limited companies, partnerships, Hindu Unified Families (HUFs) and proprietary firms
• Collateral security is waived off, if the limit is eligible and covered under Credit Guarantee Fund Scheme (CGFSI) for Small Scale Industry

Types of Business Loans

Below mentioned are the interest rates of various types of business loans offered by Tamilnad Mercantile Bank:

Business Loan Type	Interest Rate (p.a.)
MSME Credit	9.80% onwards
Micro Entrepreneurs	10.35% onwards
Pharma Trade Finance	10.80% onwards
Working Capital	11.55% onwards
Standup India Finance	11.10% onwards
Doctor	10.80% onwards

Note: The mentioned interest rates, fees and charges are subject to change and depend on the sole discretion of the bank and RBI. GST and service tax shall be levied extra on the mentioned charges.

Tamilnad Mercantile Bank offers business loans under various categories and types with offered maximum loan amount as follows:

• Banana Cultivation – Up to 70% of scale of finance
• Brackish Water Shrimp Farm – Up to Rs. 2500 lakh
• Channel Finance – Depends on pre-sanction appraisal
• Easy Mortgage Loan – Up to Rs. 50 lakh
• Genset Finance – Up to Rs. 25 lakh
• Inland Fisheries Farm – Up to Rs. 1000 lakh
• Mahalir Loan – Up to Rs. 10 lakh
• Micro Entrepreneurs Scheme – Up to Rs. 10 lakh
• Pharma Trade Finance – Up to Rs. 600 lakh
• Tractor Loan – Up to Rs. 6 lakh
• Vehicle Finance (Commercial / Corporate/ Educational Institutions) – Up to Rs. 500 lakh

Toll Free Number: 1800-425-0426

Also Know: How to Get Small Business Loans Without Collateral

FAQs

Q1. What is the minimum interest rate offered under business loan types?

Ans. The minimum interest rate is offered under MSME loan category which is 9.80% onwards.

Q2. What is the maximum repayment period offered by Tamilnad Mercantile Bank?

Ans. The maximum repayment period is up to 84 months.

Q3. What is the processing fee of business loan offered by the bank?

Ans. The processing fee charged is 1% of the loan amount plus taxes.

Q4. What is the maximum loan amount that I can avail for my business?

Ans. The maximum loan amount offered by Tamilnad Mercantile Bank is Rs. 2500 lakh under the category of Brackish Water Shrimp Farm.