Objective
- As a measure to boost up value secured high yielding loan portfolio of Bank, it is decided to introduce the scheme for financing against NSC/KVP issued by Indian Postal Department.
Eligibility
- The individuals, groups and corporate bodies in whose favour the Postal Certificates are issued are eligible for loans/ limits against pledge of the said certificates. Loan may also be considered against pledge of Postal certificate in the name of a minor subject to the condition that the guardian, who has purchased the certificates on behalf of the minor, should have to furnish an undertaking in writing for use of the loan fund for the benefit of the minor.
Purpose
- The purpose of Loan under the scheme can be for investment in Business, for personal needs like marriage / medical expenses or for any other trade related or family related needs.
Amount
- The maximum loan amount to be decided upon the maturity value of that Postal certificate, which is to be discounted with rates of interest at which the loan is proposed to be granted for the left over months for maturity of postal certificates.
Margin
- The Maximum Loan amount calculated above takes care of margin requirement. Hence no further margin should be insisted.
Security
- NSC/KVP certificate to be pledged.
Repayment
- The repayment for loan should be fixed in such a manner that the principal and interest thereon is repaid within the balance period of the maturity of pledged Postal Certificates. The repayment period should always coincide with flow of income of the Borrower for the purpose for which loan / limit is granted. The Borrower should be educated properly to repay the loan either in equated Monthly / Quarterly / Half yearly / Yearly installments. The due date for maturity of postal certificate should be recorded in liquid security register for prompt encashment and credit of the maturity proceeds in the loan account and under no circumstance any loan account should remain outstanding beyond the period of maturity of the Postal certificates.
Holiday Period
- Maximum holiday/ moratorium period is up to the course period plus one year OR 6 months after getting job by the student, whichever is earlier.
Remarks
No Processing fee to be collected for granting loans under the scheme.