Pension Loan
get loan against your monthly pension receipts
Learn more about our loan against monthly pension receipts scheme.
The TMB Pensioner Plan envisages the release of loan to elderly persons who are getting their monthly pensions, from the future pension receipts. With a low rate of interest and even lower margin money, the pensioner can get immediate access to funds that might be urgently necessary to him.
- Purpose / End Use
- To meet Medical Expenses, Payment of Electricity Charges, Phone bills, Educational Expenses, Water Charges, Family Expenses, etc.
- Eligibility
- The employees of Central / State Government organization / Public Sector undertakings / Banks who receive their pension amount through our Bank branches.
- Nature of Limit
- Overdraft in SB account. (The overdraft limit should be allowed only at the branch where the pension amount is being credited.).
- Loan Quantum
- Upto 95% of one month pension amount after deducting other repayment obligations if any for the existing loans and advances granted to the applicant.
- Margin
- 5%.
- Security
- Nil.
- Rate of Interest
- BR + 3.75% (14.50% p.a.).
- Current Base Rate for Lending (BR) is 10.75% p.a.
- Penal Interest
- Any irregularity or default in repayment will attract penal interest of 2.00% p.a. over and above the above rate of interest on the balance outstanding.
- Processing Charges
- 1.00% of Limit sanctioned without any maximum cap.
- Documentation
- Simple Documentation. Undertaking letter will be obtained that the borrower will not change the authorization given to the employer to credit the pension to Tamilnad Mercantile bank Limited during the tenure of the overdraft limit.
Note: Any other prior lien should not exist against the pension to be received
All the above Terms and Conditions are subject to change and sanctioning of the loans is at the sole discretion of the Bank. Service Tax on All Service Charges extra wherever applicable.
