Introduction

The Society provides Deposit Loans against eligible deposits maintained with the Society. This facility enables members to meet their urgent financial requirements without prematurely withdrawing their deposits and losing interest benefits.

Under this scheme, loan is granted against the security of deposits such as Fixed Deposits (FD), Term Deposits, Cumulative Deposits, and other eligible deposit schemes accepted by the Society.

Objectives

The main objectives of the Deposit Loan Scheme are:

• To provide immediate financial assistance to depositors.
• To avoid premature closure of deposits.
• To enable members to retain deposit benefits while meeting financial needs.
• To provide a simple and quick credit facility.
• To offer loans at attractive interest rates.

Eligibility

Deposit Loans may be granted to:

• Members maintaining eligible deposits with the Society.
• Individual deposit holders.
• Joint deposit holders, subject to consent of all depositors.
• Depositors whose deposits are free from any lien or encumbrance.
• Other eligible depositors as approved by the Society.

Eligible Deposits

Loans may be sanctioned against:

• Fixed Deposits (FD)
• Term Deposits
• Cumulative Deposits
• Reinvestment Deposits
• Recurring Deposits (subject to Society rules)
• Any other deposit schemes approved by the Society

Loan Amount

The loan amount shall be based on the value of the deposit pledged as security.

Generally, the Society may sanction a loan up to 90% of the deposit amount, subject to the rules and policies of the Society.

The actual loan amount shall depend upon:

• Deposit value
• Type of deposit
• Remaining maturity period
• Society norms and policies

Security

The loan shall be secured by:

• Lien and pledge of the deposit receipt.
• Deposit standing in the name of the borrower.
• Proper execution of loan documents.
• Any additional documentation required by the Society.

Interest Rate

The rate of interest on Deposit Loans shall be as prescribed by the Society from time to time and may generally be slightly higher than the interest rate applicable to the pledged deposit.

Repayment

The borrower may repay the loan at any time during the currency of the deposit. The Society may adjust the outstanding loan amount against the deposit proceeds on maturity, if required.

Benefits of Deposit Loan

• Quick loan sanction and disbursement
• No need to prematurely close deposits
• Continued earning of deposit interest
• Simple documentation
• Lower interest rates compared to unsecured loans
• Convenient repayment facility

Terms and Condition Apply