| 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 |
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
