TMB Bank Education Loan: Eligibility Criteria, Interest Rates & Application Process

An education loan helps students finance their studies by covering tuition fees, accommodation, travel, and other academic expenses. It provides financial support for courses in India and abroad, ensuring students can focus on their education without financial burden. TMB bank education loan offers competitive interest rates and flexible repayment options,  supporting students for professional, technical, and vocational courses.

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TMB Bank Education Loan: Highlights

The TMB Bank Education Loan is a financial assistance program for parents or guardians who wish to support their children's education in professional or technical courses in India and abroad. 

Below are the key details of the TMB bank education loan:

When evaluating the TMB Bank Education Loan, it's important to also consider the margin money in education loans, as banks typically require a certain percentage of the loan amount to be contributed by the borrower, especially for loans covering study abroad expenses.

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TMB Bank Education Loan Eligibility Criteria

Below are the eligibility criteria to qualify for a TMB bank education loan:

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TMB Bank Education Loan: Documents Required 

Below is a list of the documents required to apply for a TMB bank education loan:

Prepare your documents in advance to get your education loan approved faster. Check the complete list now!

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How Do You Apply for a TMB Bank Education Loan?

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Tamilnad Mercantile Bank allows you to apply for an online and offline education loan. Select the method that suits you best. 

Online Process

To apply for an education loan online through Tamilnad Mercantile Bank, follow these steps:

1. Visit the Official Website

Go to the Tamilnad Mercantile Bank's official website and navigate the education loan section.

2. Click on "Apply Now"

Select the option to apply for an education loan.

3. Fill in Your Details

Enter the required personal, academic, and financial details in the application form.

4. Upload Necessary Documents

Attach all the necessary documents, like identity proof, admission letter, and income details.

5. Submit the Application

Once completed, submit the form online.

6. Print the Application

Take a printout of the submitted form for future reference.

7. Visit the Bank Branch

Visit the nearest Tamilnad Mercantile Bank branch to complete any additional formalities.

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Offline Process

To apply offline, visit the nearest Tamilnad Mercantile Bank branch and request the education loan application form. The bank staff will provide details on eligibility, required documents, and the most suitable loan options.

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Applying for an instant student loan online is quick and hassle-free. Follow the simple steps, submit the required documents, and get your loan approved quickly.

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TMB Bank Education Loan: Course Eligibility 

Below are the eligibility for studies in India and abroad.

Eligible Courses for TMB Bank Education Loan in India

Eligible Courses for TMB Bank Education Loan Abroad

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TMB Bank Education Loan Interest Rate

Tamilnad Mercantile Bank (TMB) offers different education loan schemes with varying interest rates based on the loan type. Below are the applicable interest rates:

While evaluating the TMB Bank Education Loan Interest Rate, it's beneficial to explore strategies to secure the best education loan interest rates, which can help you choose the most cost-effective financing option for your educational needs.

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TMB Bank Education Loan: Processing Fee 

The applicable charges are as follows:

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TMB Bank Education Loan Margin 

The loan margin is the portion of educational expenses the borrower needs to fund while the bank covers the remaining amount. The margin percentage varies for studies in India and abroad, as detailed in the tables below.

Loan Margin by TMB Bank for Studies in India

Loan Margin by TMB Bank for Studies Abroad

When considering the loan margin by TMB Bank for studies abroad, it's essential to understand how this impacts your total loan amount. For instance, if you're planning to study in Ireland, exploring education loan options for studying in Ireland can provide insights into funding structures, eligibility criteria, and loan covers for tuition and living expenses.

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TMB Bank Education Loan: Repayment Terms

Tamilnad Mercantile Bank offers flexible repayment options to ensure students can repay their education loans conveniently after completing their studies. The repayment period includes a moratorium, allowing students time to secure employment before beginning loan repayments. 

Below are the details of the repayment terms.

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TMB Bank Education Loan: Repayment Process

Tamilnad Mercantile Bank (TMB) provides flexible repayment options to ease the financial burden on students. The repayment details are as follows:

1. Moratorium Period

Repayment begins after the course duration plus one year.

2. Employment-Based Repayment

If the student secures a job within a year of course completion, repayment must start one month after employment begins.

3. Loan Repayment Tenure

Candidates must repay the loan within 5 to 7 years after the moratorium.

4. Extension for Course Completion

If the student cannot complete the course on time, an extension of up to 2 years may be granted.

5. Additional Consideration

The bank can approve or deny extensions if unavoidable circumstances lead to incomplete studies.

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TMB Bank Education Loan: Security Requirements

Smaller loans generally do not require security, while higher loans may need a third-party guarantee or collateral. Below are the security requirements based on the loan amount and study location.

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Expenses Considered for the TMB Education Loan

TMB Bank education loan provides financial assistance to cover various educational expenses, ensuring students can focus on their studies without financial stress. The loan covers the following costs:

1. Tuition Fees

Payment for the academic course.

2. Accommodation Charges

Hostel or rental expenses during the study period.

3. Examination Fees

Fees required for exams and assessments.

4. Library and Laboratory Fees

Costs for accessing study materials and practical learning resources.

5. Study Materials & Equipment

Includes books, apparatus, laptops (if essential), study projects, and uniforms.

6. Security Deposits & Institutional Charges

Caution deposits and other applicable institutional fees.

7. Travel & Transportation

Costs related to commuting or travel within the country.

8. Airfare for Overseas Education

One-time passage fare for students studying abroad.

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TMB Bank Education Loan Insurance

The bank offers education loan insurance, ensuring financial protection in unexpected circumstances. The insurance cost ranges between 1% to 2% of the total loan amount.

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TMB Bank Education Loan vs Other Banks 

Below is a comparison of education loan details from major banks, including interest rates, loan limits, and repayment terms.

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TMB Bank Education Loan: EMI Calculation As Per Interest Rate

To understand how EMI payments work, let's consider an example:

• Loan Amount: INR 10 Lakhs
• Course Duration: 2 Years
• Moratorium Period: 1 Year (No EMI payment during this period)
• Interest Rate: 11% per annum
• Repayment Tenure: 10 Years (after the moratorium period)

Once the repayment begins, the EMI will remain constant, but the proportion of interest and principal will change over time. Initially, a more significant portion of the EMI goes toward interest, and over time, more contributes to reducing the principal.

Below is a detail of how the loan repayment progresses:

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Government Subsidy Scheme for Education Loan

The Government of India has multiple schemes to support students from economically weaker sections and minority communities financially. Two major schemes under this initiative are:

1. Central Scheme of Interest Subsidy (CSIS)

The CSIS scheme supports students from economically weaker sections pursuing higher education.

2. Padho Pardesh

It is aimed at students from minority communities who wish to study abroad.

Central Scheme of Interest Subsidy (CSIS)

Padho Pardesh Scheme

The TMB Bank Education Loan provides a reliable financial solution for students pursuing higher education. By offering support for various expenses, including tuition, accommodation, and travel, TMB Bank helps students quickly achieve their academic goals.

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Why Propelld?

Propelld is a student-friendly financing platform offering customised education loans with flexible repayment options. It provides quick approvals, minimal paperwork, and competitive interest rates, making higher education more accessible.

The following are the primary benefits of Propelld.

Take the next step in your academic journey - Apply for an education loan today!

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FAQs for TMB Bank Education Loan

How can I get an education loan of INR 7 lakhs?

If you need an education loan of INR 7 lakhs, you can avail yourself of it with only a parent or guardian as a co-borrower. No collateral or third-party guarantee is required. You need collateral security and a co-borrower for loans exceeding INR 7.5 lakhs.

Can I get an education loan of INR 3 lakhs without a guarantor?

Education loans up to INR 4 lakhs do not require collateral or a guarantor. However, if the loan amount exceeds this limit, banks may ask for collateral security or a third-party guarantee per their policies.

What is the PM Vidyalaxmi education loan scheme?

The PM Vidyalaxmi Scheme, approved by the Union Cabinet on November 6, 2024, is a Central Sector Scheme designed to provide financial assistance to meritorious students pursuing higher education in India and abroad.

What is the EMI for an INR 10 lakh education loan?

For an INR 10 lakh education loan, the estimated monthly EMI is INR 19,566, based on a standard repayment tenure and interest rate. The total repayment amount, including interest, would be approximately INR 11,73,969.

Can I repay my education loan early?

Yes, you can prepay your education loan before the tenure ends. Early repayment can help you reduce interest costs and improve your credit score. However, some banks may have prepayment charges, so it is best to check with your lender.

How can I reduce my EMI on an education loan?

You can reduce your monthly EMI by choosing a longer loan tenure. However, this increases the total interest paid. If you want to save on interest, opt for the shortest tenure possible while ensuring affordability. Using an Education Loan EMI Calculator can help compare different repayment options.

How do I calculate my education loan EMI?

You can use Propelld's EMI Calculator to calculate the EMI of the education loan easily. Here is the formula to calculate the education loan EMI:

EMI = P × R × (1+R)ⁿ / (1+R)ⁿ−1

Where:
P = Loan amount
R = Monthly interest rate (Annual interest rate ÷ 12)
n = Loan tenure (in months)

For example, if you take an INR 5 lakh loan at a 0.7083% monthly interest rate for 60 months, your EMI can be calculated using this formula.

What happens if I don't repay my education loan?

Failure to repay your education loan can lead to penalties, legal action, and a negative impact on your credit score. If you default, the bank may recover the amount by seizing collateral (if applicable) or taking legal action against the borrower and co-borrower.

What is the maximum loan amount I can get from TMB Bank for education?

TMB Bank offers education loans of up to INR 10 lakhs for studies in India and INR 20 lakhs for studies abroad.

How long is the repayment period for a TMB education loan?

The maximum repayment tenure is 15 years, excluding the moratorium period, which includes the course duration plus one year after securing a job.

What courses are eligible for TMB Bank education loans?

TMB Bank provides loans for graduate, postgraduate, diploma, and professional courses in India and abroad. Eligible programs include MBA, MCA, MS, engineering, medical courses, CA, CFA, pilot training, and degree programs from UGC, AICTE, IIMs, IITs, and recognised foreign universities.

What is the interest rate for TMB Bank education loans?

The interest rates for TMB education loans vary based on the loan scheme:

• TMB Education Loan: 12.75% - 13.00%
• TMB Skill Development Loan: 11.75%
• TMB Super Education Loan: 12.25% - 12.75%
• TMB Short-Term Education Loan: 11.75%