Loan Against Deposit

Loan Against Deposit is a type of loan where a bank or financial institution allows a depositor to borrow money by using their fixed or recurring deposit as collateral. Instead of liquidating the deposit, which may incur penalties or loss of interest, the depositor can avail of a loan against it, generally up to a certain percentage of the deposit's value (usually 70-90%).

• Loan amount up to a maximum @ of 90% of the principal amount.
• Rate of interest on loan against deposit @1% extra over the rate of interest of respective fixed deposit.
• Rate of interest on loan against deposit will be charged @2% extra over the deposit interest in the case such facility is being availed by a third party.

Documents required for Loan Against Deposit

• The loan application should be duly filled & signed.
• Submit fixed deposit certificate in original duly discharged by the applicant.In case of loan facility against fixed deposits being availed by any person other than the applicant No Objection letter issued by the holder of such fixed deposit should be accompanied along with the loan application in the original.
• Format for No Objection Certificate should be obtained by the respective fixed deposit holder from the society separately.