Tamilnad Mercantile Bank Loan Against FD

What is a Tamilnad Mercantile Bank Loan Against FD?

Tamilnad Mercantile Bank loan against fixed deposit allows customers to get an overdraft against their fixed deposit without premature withdrawal. The applicable interest rate is usually 1–2% higher than your FD interest rates. During the loan period, your fixed deposit continues to earn returns, ensuring your savings remain intact. This makes the loan against FD affordable and secure, especially when compared with unsecured loans.

Benefits of Tamilnad Mercantile Bank Loan Against FD

Tamilnad Mercantile Bank Loan Against FD has the following advantages for the customers:

• Interest Charged Only on Used Amount: Interest is charged only on the withdrawal amount, or amount spent, and not on the full sanctioned amount or maximum amount of a loan.
• FD Continues Earning Interest: Your FD keeps earning interest at the agreed rate even while the Loan on FD is active.
• Fast Approval and Minimal Documentation: As the FD serves as collateral, processing is quick and paperwork is limited compared to unsecured loans.
• Flexible Repayment Options: Repay the loan dues conveniently, without rigid EMIs or prepayment penalties.

How to Apply For a Tamilnad Mercantile Bank Loan Against FD?

There are both online and offline channels available to customers for applying for a loan against FD Tamilnad Mercantile Bank.

1. Online Loan Application 

   You can easily apply for a Tamilnad Mercantile Bank Loan Against FD online through NetBanking. Follow these steps:

   • Log In: Access your Tamilnad Mercantile Bank NetBanking account with your credentials.
   • Navigate to the Loan Section: Go to the Loans section and select Loan Against FD.
   • Select FD Account: Choose the fixed deposit account you wish to pledge as security.
   • Enter Loan Details: Specify the loan amount and preferred tenure as per your requirement.
   • Upload Documents (if prompted): Provide necessary documents such as identity proof or address proof, if required.
   • Review Terms: Go through the terms and conditions of the loan carefully.
   • Submit Application: Review and submit your request. You will instantly receive a confirmation or reference number.

2. Offline Loan Application

   If you prefer applying in person, you can visit your nearest Tamilnad Mercantile Bank branch to get a Loan Against FD. Here’s the process:

   • Visit the Branch: Carry your original FD certificate along with a valid identity document such as Aadhaar, PAN card, or passport.
   • Request Application Form: Ask the bank staff for the Loan Against FD application form.
   • Fill in Details: Enter your personal details, FD account information, required loan amount, and preferred tenure in the form.
   • Submit KYC Documents: Provide KYC documents if you are a new customer or if your KYC is due for renewal.
   • Hand Over Forms: Submit the filled-in application form along with your FD certificate to the bank official.
   • Verification & Disbursal: The bank will verify your details, and upon approval, the loan amount will be credited to your linked savings account.

Who Should Consider a Tamilnad Mercantile Bank Loan Against an FD?

This facility is suitable for a variety of customers. These include:

• Existing FD Holders: Customers who already maintain a fixed deposit with Tamilnad Mercantile Bank.
• Individuals Needing Immediate Liquidity: Those facing urgent expenses but wanting to keep their FD intact.
• Cost-Conscious Borrowers: Customers seeking funds at lower interest rates compared to unsecured personal loans.
• Customers Preferring Low Documentation: Borrowers who want quick approval and minimal paperwork.
• Customers Seeking Flexible Terms: Customers who value flexible repayment and continued FD interest earnings.

Repayment Options for Tamilnad Mercantile Bank Loan Against FD

Tamilnad Mercantile Bank offers customer-friendly repayment options designed for flexibility and convenience.

• No Fixed EMIs: Borrowers are not bound by compulsory installments. The loan principal and interest can be repaid in part payments or in full at any time without prepayment penalties.
• Repay Anytime: Customers have the choice to repay through easy monthly installments or settle the outstanding loan in a single lump sum, depending on their financial comfort.
• Automatic Deductions: Loan interest and principal can be directly debited from the linked savings or current account at regular intervals or as per the agreed terms, ensuring smooth repayment.
• Repayment from Other Accounts within the Same Bank: Apart from the primary linked account, repayments can also be made using another Tamilnad Mercantile Bank account held in the borrower’s name.
• Loan Closure on FD Maturity: If the outstanding loan is not cleared before the fixed deposit matures, the bank will close the loan by adjusting the dues against the FD proceeds.

Key Takeaways

Tamilnad Mercantile Bank Loan Against FD is an effective way to access funds without closing your fixed deposit. The facility offers lower interest rates compared to unsecured loans, making it a cost-efficient borrowing option. Repayment is flexible, as there is no fixed EMI structure, giving you the freedom to repay as per your convenience. At the same time, your fixed deposit continues to earn interest throughout the loan tenure.