Updated on: May 23rd, 2024 6:07 PM

TMB Easy Mortgage Loan Scheme

A loan against property is a convenient way to fund business if the promoters have the property available that can be pledged. Tamil Nadu Mercantile Bank Limited offers the TMB Easy Mortgage Loan Scheme. Under this scheme, the loan against property can be raised easily by giving any commercial property as collateral security to the Bank. This scheme offers loans up to a maximum of Rs. 50 Lakhs either in the form of the OD Limit or Term Loan or Combination of both with interest on diminishing balance. In this article, we will look at the TMB Easy Mortgage Loan Scheme in detail. Know more about the Bank Loan for Startup Business

Purpose of the Scheme

The TMB Easy Mortgage Loan Scheme can be obtained for the following purposes:

• To meet the credit needs of the business or commercial activity
• To purchase a plot of land for the construction of premises for business
• For repayment of existing loan availed from other banks or Financial Institutions (FI) conforming to the existing guidelines regarding the takeover of account.
• To undertake repairs, renovation, an extension to the commercial property
• for productive purposes other than speculative purposes like purchase or investment in land, stock and shares.

Know more about the Property Mortgage Laws in India

Eligibility Criteria

Following persons can get the TMB Easy Mortgage Loan against the property:

• Individual / Joint
• Sole Proprietary Concerns
• Partnership firms

Note: The facility under the TMB Easy Mortgage Loan Scheme shall not be extended to NBFC, Private Bankers, Money Lenders, Chit Fund Companies and Stock Brokers.

Loan Amount

The loan amount is generally about 50% of the value of the easily saleable immovable property. The loan will be provided either in the form of Over Draft Limit or Term Loan or a Combination of Both.  The businessman can get up to a maximum of Rs. 50 Lakhs as a loan under the TMB Easy Mortgage Loan Scheme.

Valuation of Property

Valuation of the property is based on the Distressed Sale Value; it has to be obtained from at least two approved valuers in addition to the independent assessment of the Manager. Panel Engineer (Valuation) or Manager (Valuation) whichever is lower will be considered.

Repayment

The maximum repayment period for the term will be fixed based on the income generation of the borrower up to a maximum of sixty months. The repayment period for the Working capital limit is One year. Note: The Sanctioning Authority will ensure that the borrower has sufficient income to service the existing and proposed debt obligation by verifying the necessary documents.

Margin

The applicant needs to pay 50% of the amount, while the Bank pays the rest.

Security Details

• Land and building property for value not less than 200% of the loan amount
• Collateral: Agricultural land should not be considered as collateral security. The Bank should not accept third-party security except those of the family members
• Personal guarantee of mortgager should be obtained

Other Conditions

Registration of Memorandum of Title Deeds under the respective State's Stamp Act should be insisted upon, and it is mandatory for TMB Easy Mortgage Loan Scheme. Note: In respect of property situated in other states where the law for Registration of Memorandum of Deposit (MOD) of title deeds under the respective stamp Act is not enacted, the registered mortgage should be insisted.

Insurance Details

Insurance for the full market value of the property with the Bank Clause is provided under the TMB Easy Mortgage Loan Scheme.

Rate of Interest

The rates of Interest for MCLR based interest rates is given in the document below. For further details, please contact the Tamil Nadu Mercantile Bank Limite's nearest branch. The current base rate for lending (BR) is 9.75% per annum.

Penal Interest

Any irregularity or default in repayment of the loan will attract a penal interest of 2.00% per annum over and above the above rate of interest on the balance outstanding.

Processing Charges

• Term Loan: 1.00% of Limit sanctioned without any maximum capital
• Working Capital [Fund and Non-Fund Based]: 0.50% of the loan amount without a maximum cap.

Documents Required

The following documents are to furnished along with the application form of the scheme.

• Application Form in the prescribed format.
• Business Plan- Copy of Business plan.
• Identity Proof- Proof of Identity like PAN, Drivers License, Aadhaar Card, Passport and more.
• Domicile Proof- Residence proof like recent telephone bill, electricity bill or property tax receipt and more.
• Photograph- Applicant's recent photo less than six months old.
• Quotation of Machinery- Quotation of machinery or other items to be purchased.
• Machinery Details- Name of supplier or details of machinery or prices of machinery.
• Business Details- Proof of identity or address of the business like tax registration, business license and more.
• Caste Certificate- Proof of category like SC/ST/OBC/Minority, if applicable.

Application Procedure

• The applicant needs to visit the nearest branch of Tamil Nadu Mercantile Bank Limited, and the Relationship Manager will guide the application process.
• You can also contact the Tamil Nadu Mercantile Bank Limited and the bank Customer Care Executive will fix a service appointment with the Relationship Manager to help the applicant with the application process.
• The applicant will have to fill up the form with the relevant details and documents. On verification of application form, the loan amount will be credited to the applicant's account.

Note: All the above Terms and Conditions are subject to change, and sanctioning of the loans is at the discretion of the Bank. Goods and Service Tax (GST) on All Service Charges extra wherever applicable.