Advances against the pledge of Govt. Securities

Loan / Overdraft Against Government Securities

We offer Loan and Overdraft facilities against Government Securities and Small Saving Instruments to meet your genuine funding needs.

Eligibility

Any Individual, Group of Individuals, Proprietorship / Partnership Firms, Companies, etc. who are bona-fide Members of the Bank, including Nominal Members.

Type of Facility

Loan and / or Overdraft Limit

Purpose

For any legitimate requirement of funds except for speculative purposes and for purchase of small saving instruments like KVPs, NSCs, etc.

Margin

  • 10% of face value of the instrument if repayment is due within two years from the date of sanction.
  • 15% of face value in all other cases.

Rate of Interest

As per Bank’s rules.

Other Charges

As per Bank’s rules.

Repayment

As required by the borrower, but not later than the date of maturity of the instrument(s) pledged with the Bank.

Security

Pledge of Government Securities like NSCs, KVPs, and other Bonds / Debt Instruments issued by Central or State Government / PSU in the name of the borrower or any third party, who shall stand as surety for the facility.

Other Conditions

  • Bank’s charge on the instrument must be registered with the issuing authority before disbursement of the credit facility.
  • No financial accommodation shall be allowed for purchase of the same instrument which is proposed to be pledged with the Bank.
  • CEO may relax the margin condition up to a maximum of 5% in deserving cases, based on the merit of each case.