TMB Education - Short Term Loan for SHG Members

About the TMB Education - Short Term Loan for SHG Members

The TMB Education - Short Term Loan for SHG members is a customised scheme under TMB’s broader education loan offerings. This loan enables SHG families to achieve their educational goals through structured financing. It includes tuition, housing, exams, library fees, books, travel, and other academic expenses. 

TMB Education - Short Term Loan - Rates of Interest

The TMB Education - Short Term Loan for SHG members features a low set interest rate, making it easier for borrowers to repay the loan.

• Interest Rate: 11.50% p.a. (Fixed)

Note: The above rate is based on the updated interest terms as of June 23, 2025, and is subject to change by RBI guidelines or internal lending policies.

Features of TMB Education - Short Term Loan for SHG Members

Here are the most essential parts of TMB Education - Short Term Loan for SHG members for student loans: 

• Tax Benefits: You can get a tax break by deducting the interest paid on a loan under Section 80E.

• Processing Fee: A processing fee of ₹100 is applied for every ₹1 lakh approved, with a maximum of ₹500. 

• Child Education Plan Aid: It aligns well with the child education plan that a family already has in place. 

• Repayment Based on Income: Parents or guardians must pay interest monthly from their funds while the child is in education. 

• Child Investment Plan Friendly: This Tamilnad Mercantile Bank loan helps families managing child investment plans by allowing them to plan their finances simultaneously.

Investment

Secure

Secure your child’s future with or without you

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₹10,000/Month

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₹1 Crore^*

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Eligibility of TMB Education - Short Term Loan for SHG Members

Applicants must meet the following criteria for TMB Education - Short Term Loan for SHG members:

• The student must be an Indian citizen.

• The student should have achieved a first-class result in their most recent public examination.

• Confirmed admission to a recognised institution is mandatory.

• If the student is under 18, the loan may be taken in the parent's or guardian's name.

• The applicant must belong to a Self-Help Group (SHG) verified by the bank.

Documents Required for TMB Education - Short Term Loan for SHG Members

To apply successfully for the TMB Education - Short Term Loan for SHG members, make sure you have the following documents ready:

• Identity Proof: Aadhaar card, PAN card, or voter ID 

• Address Proof: A rent agreement, or an electricity bill, 

• Educational Records: Copies of the academic grade sheets

• Admission Proof: An official letter from the school admitting you

• Proof of income: Proof that the parent or guardian makes money

• Photographs: Pictures of the student and their guardian that are passport-sized 

Most Important Terms and Conditions

Before applying for the TMB Education - Short Term Loan for SHG members, it’s important to understand the key repayment and security terms:

• Interest Payment: You must make monthly interest payments during the study period. 

• Moratorium Period: length of the course plus one year.

• Repayment Tenure: 5–7 years after the moratorium time. 

• Early Employment Clause: The Early Employment Clause states that if a student secures employment within one year of completing the course, they must begin repaying the loan one month after commencing work.

• Course Discontinuation: If you drop a course, you will still be required to repay the loan. 

• Security Norms: 

  • Up to ₹4 Lakhs: No collateral

  • ₹4–7.5 Lakhs: Third-party guarantee

  • Above ₹7.5 Lakhs: 100% collateral security

• Use of an Income Tax Calculator: Before applying, families can use an income tax calculator to figure out how much money they can save on taxes.