TMB - Education Loan

About the TMB - Education Loan

Tamilnad Mercantile Bank Education Loan is designed for Indian students who’ve secured admission in recognised technical, professional, or skill-development courses. This education loan covers tuition fees, hostel expenses, travel expenses, books, laptops, and other essential academic costs. Parents and students benefit from repayment flexibility, and post-study tax deductions make it suitable for a child investment plan.

TMB - Education Loan - Rates of Interest

The loan interest rate is linked to the bank’s MCLR (Marginal Cost of Funds based Lending Rate) and varies based on the student’s academic background, institution type, and loan amount.

• Minimum Interest Rate: 11.55%

• Maximum Interest Rate: 11.60 %

Note: The rates are updated per Tamilnad Mercantile Bank’s latest terms as of 7 June 2025. These may change based on RBI Repo Rate movements or bank lending policy updates.

Features of the TMB - Education Loan

Here are the key features of TMB Education Loan:

• Interest Subsidy Available: Loans up to ₹7.5 lakh for Indian education may qualify under the Central Sector Interest Subsidy Scheme, reducing interest burden during the moratorium.

• Flexible Security Options: Third-party guarantee needed for loans between ₹4 lakh and ₹7.5 lakh; full collateral applicable for higher loan amounts based on TMB's norms.

• Built-in Repayment Buffer: Repayment begins after course completion plus one year or six months post-employment, whichever comes first.

• Extended Repayment Window: Total loan tenure, including the moratorium period, can extend up to 15 years to ease financial pressure on students and families.

• Supports Future Planning: Useful for families preparing a structured child education allowance or higher education fund with a long-term view.

Investment

Secure

Secure your child’s future with or without you

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₹10,000/Month

& Get

₹1 Crore^*

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Eligibility for TMB - Education Loan

To qualify for the KBL PEAK Education Loan, the following course and nationality requirements must be fulfilled:

• Nationality Requirement: The applicant must be an Indian citizen.

• Admission Criteria: Admission should be secured based on merit or through a recognised entrance examination.

• Courses in India: Graduate, PG, and diploma courses approved by UGC, AICTE, etc., including IIM, IIT, NIFT, CA, CFA, and regulated fields like aviation and nursing.

• Courses Abroad: Job-oriented UG/PG courses like MBA, MS, CIMA–London, CPA–USA, and certified aviation/shipping programs recognised for employment.

Documents Required for TMB - Education Loan

Here’s what applicants generally need to submit for the TMB - Education Loan:

• Identity and address proof (Aadhaar, PAN, Passport, Utility bills)

• Admission letter from a recognised institution

• Academic mark sheets from Class 10 onwards

• Proof of course fee and structure

• Income proof of parent/guardian or co-applicant

Most Important Terms and Conditions

Let’s look at the core conditions that govern the TMB - Education Loan scheme:

• Single Use Per Course: The Loan can be availed only once per course; a new course requires a new application

• Collateral Requirement: None for up to ₹4 lakh; higher amounts follow standard collateral norms

• Penal Charges: 2% p.a. penalty on overdue payments

• Processing Fee: Nil for domestic; 1% of the loan amount for foreign education loans above ₹7.5 lakh