The history of Tamilnad Mercantile Bank Ltd., the then Nadar Bank Ltd., dates back to 1921. The thought of establishing a bank under the guidance of the able Nadar business community was mooted out in the Anniversary of Nadar Mahajana Sangam held at Tuticorin in 1920. The proposal was effected soon. The bank was registered on May 11, 1921 as “The Nadar Bank Ltd”.

A group of dedicated men with shrewd acumen and sound integrity had been constituted as Board of Directors and they elected Shri M.V. Shanmugavel Nadar as Chairman on Nov 04, 1921. The bank was opened by Shri T.V. Balagurusamy Nadar, the then President of the Nadar Mahajana Sangam and the bank threw open its door to the public on Nov 11, 1921 at 9am in Ana Mavanna Building at South Raja Street, Tuticorin.

Car Loan

Learn more about our Car Loan under Retail Loan Products.

Our car loan scheme is among the popular of all the retail loan schemes since it offers quick processing of loans for the purchase of new cars at low interest rates and simple documentation and conditions.


  • To buy New Car / Four Wheeler for personal or professional use.
  • To buy Pre Owned (Used / Second Hand) Cars in good working condition and not more than 4 years old.


Individual / HUF / Partnership Firm / Limited Company / Trust Individual: Minimum Gross Income of Rs. 1,20,000 per annum (including the income of the spouse). For Others: The average Debt Service Coverage Ratio should be 1.50:1 or more.

Loan Quantum

Up to Rs. 150 Lakhs for New Vehicle.

For Purchasing Second Hand Cars: Restricted up to Rs. 15 Lakhs.


15% of “On Road Price” for New Vehicle / 30% of the Purchase Value or Market value of Pre Owned Cars whichever is lower.


In case of HUF: Guarantee from Male Members of the HUF. In Case of Individuals: Spouse or father of the applicant or third party. In case of others: Partners / Directors / Trustees Guarantee may be waived in appropriate cases by the concerned sanctioning authority based on repaying capacity of the applicant.


5 Years. Equated Monthly Installment. For salaried persons – EMI should not exceed 40% of Take Home Salary and for others, the minimum ADSCR should be 1.50:1.


Hypothecation of Vehicle to be Financed.

Rate of Interest

  • Upto 36 Months – BR + 1.50% (12.25% p.a.).
  • Over 36 months & upto 60 Months – BR + 2.00% (12.75% 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.

Prepayment Charges

At the rate of 0.25% of amount prepaid. In case, where the loan is closed by way of Take Over by 0ther Bank alone will attract prepayment Charges. However, no prepayments charges will be levied in cases where the loan is closed by the borrower from own sources of funds.


Usual documents as per our Bank Norms.

How to Apply

Loan Application Letter to be accompanied by: 1. Proof of Income (IT Return / Salary Certificate / Others). 2. Quotation. 3. Letter from Third Party Guarantor, if applicable.

Other Stipulation

  • Hypothecated Vehicle should be adequately insured.
  • Our Bank’s hypothecation charge should be duly registered with the Regional Transport Authority and it should be recorded in the RC Book.
  • Duplicate key and RC Book copy should be obtained and kept along with the loan documents.

For a Car Loan of Rs. 5,00,000repayable in 60 equal monthly installments at an interest rate of 12.25% p.a., the equated monthly installment (EMI) payment shall be around Rs. 11,185.49. Click forMonthly Amortization Chart.

Loan application documents:

  • Proof of Income (IT Return / Balance Sheet / Salary Certificate / Others).
  • Quotation from registered vendor.
  • Letter from Third Part Guarantor, if applicable.

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.

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