How to Take a Loan Against NSC?
Loan Against National Savings Certificate
You can get
2 types of loans
:
A flat loan
An overdraft loan
What is a Flat Loan?
The type of loan in which the total
interest that the borrower pays is decided
at the very beginning based on the total principal amount.
What is an Overdraft
Loan?
The overdraft facility allows you to
borrow money even when your account has insufficient funds
to cover the withdrawal amount.
Tenure
The tenure of the loan against National Saving Certificate
equals the maturity of your investment in the scheme
.
Quantu
m of the Loan
Banks can provide loans up to
70-90% of NSC value
, with longer-held NSCs (3 years) yielding maximum loan amounts & shorter-term NSCs yielding less.
Interest Rates
Interest rates are usually lower than traditional loans. Most banks charges an interest around
Base Rate + 4% to
Base Rate + 7%
.
Who is Eligible?
An Indian citizen Age: 18 - 75 years
How to Avail Loa
n Against NSC?
Step 1: Collect the
NC 41 Form from the post office
, fill it up & submit it. The form should be signed by the pledgee & pledger.
How to Avail Loa
n Against NSC?
Step 2: After submission, the
post office will mark the pledge
on the NSC as per its rules.
How to Avail Loa
n Against NSC?
Step 3: The
concerned officer will write “Transferred security to
…” on your NSC in red ink below the postmaster’s dated signature.
How to Avail Loa
n Against NSC?
Step 4:
Pay the stipulated fees
to the post office for verifying & releasing the pledge.
How to Avail Loa
n Against NSC?
Step 5: Once the
bank receives the certificates duly marked as pledged
by the post office, it will release the loan to you.
Documents Required
ID proof Income Proof Photographs Original National Savings Certificate
NSC: Attractive Lo
an Collateral
The interest rate on the loan amount drawn against an NSC is
generally
lower than the interest charged on personal loans
.
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Earn 9 - 11%
Fixed Returns
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