To offer loan against pledge of bank’s own deposit in order to help the depositors who are in the urgent need of money but do not want to close or break their deposit.
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All depositors having time deposit with the bank in their own name.
The maximum loan amount shall be 80% of the principal amount and interest accrued in respect of the concerned deposit account as on the date of sanction of loan.
Minimum 20% of the principal amount and interest accrued in respect of the concerned deposit account as on the date of sanction of loan.
The maximum loan period shall be upto the maturity of the concerned deposit receipt.
No fixed repayment schedule shall be stipulated. The depositor shall be allowed to repay the loan either fully or partly as per his/her convenience. If the loan remains unpaid as on the date of maturity of the concerned deposit, the proceeds of the deposit shall be utilized to close the loan account. The balance of the proceeds, if any, shall be paid to the depositor.
2% over and above the interest rate given to the concerned deposit account. Compound interest to be applied at monthly rest.
The deposit receipt issued by the bank shall be pledged with the bank. The deposit receipt shall be duly discharged by the depositor while pledging with the bank