Loan Against Security

Lets a customer pledge owned securities (such as NSC/KVP) without selling them: a current account is opened with an overdraft limit sanctioned against the pledged securities, with interest charged only on the amount actually drawn.

Features

• No need to liquidate NSC/KVP or other eligible securities.
• Overdraft-style drawdown — pay interest only on the utilized amount and period.

Interest Rate

• 12.00% p.a., calculated on a monthly basis.

Loan Amount & Tenure

• Up to 70% of the value of the securities pledged.
• Repayment can extend until the security matures.

Eligibility

• Holders of eligible securities (e.g. NSC, KVP) willing to pledge them to the Bank.

Margin / Security

• Pledge of the securities as collateral.
• For loans above ₹1,00,000: property valuation, title deeds and non-encumbrance certificate additionally required.

Documents Required

• Photograph, identity proof, signature verification, address proof.
• KYC documents (PAN, debit card, etc.).
• Loan agreement, guarantee deed, memorandum of deposit, promissory note and the original fixed deposit / security receipt.