Advances against Bank’s own Deposits

Loan / Overdraft Against Deposit

We provide Loan and Overdraft facilities against Bank’s own Deposits to meet your legitimate funding needs.

Eligibility

Any Individual, Group of Individuals, Proprietorship / Partnership Firms, Companies, etc.

Type of Facility

Loan and / or Overdraft Limit

Purpose

For any legitimate requirement of funds.

Margin

  • 15% of the present value of Deposit for General Public.
  • 5% in case of members of staff of the Bank.

Rate of Interest

(i) For General Public

  • Loan Amount less than ₹10.00 lakh:
    Interest = 2% above the applicable rate of interest on respective Deposit A/c.
  • Loan Amount ₹10.00 lakh and above:
    Interest = 1% over and above the Deposit rate.
  • No further relaxation is allowed below 1% above the applicable deposit rate.
  • Board of Directors may consider a lower rate, but not less than 1% over the applicable deposit rate.

(ii) For Members of Staff

  • Interest = 1% above the applicable rate of interest on respective Deposit A/c.

Repayment

As required by the borrower, but not later than the date of maturity of the Deposit A/c.

Security

Pledge of Bank’s own Time Deposit Receipt and / or Recurring Deposit A/c in the name of the borrower or any third party.

Other Conditions

  • No credit facility shall be allowed against the deposits of other Banks.
  • Weighted average rate of interest will be charged in case of deposits of different interest rates pledged as security.
  • CEO may relax the margin condition up to a maximum of 5% in deserving cases.
  • Board can further relax the margin up to a maximum of 5%, i.e., Bank can grant loan up to 95% of Bank’s own deposit.