Deposit Loans

Loans not exceeding 85% of the deposits may be issued against the security of deposits to the depositors. Interest on such loans shall be charged at such rates decided by the Board from time to time.


The Bank grants loan against Postal Securities (i.e. NSC/KVP) to its customers up to 75% of the face value of Postal deposit, which shall be pledged to the Bank. The Post Office which issued the Postal Certificate (s) proposed to be pledged must be within the area of operation of the Branch Bank. The due date of repayment of such loan is the date on which the deposit (s) gets maturity. If the loan is not fully repaid within the due date, the Bank claims and draws the maturity value of Postal Certificate (s) pledged against the loan from the Post Office concerned and makes credit to the loan account and after adjustment to loan account, the surplus if any is paid to the borrower. The rate of interest on such loan is fixed as decided by the Board of Management of the Bank from time to time and the interest accrued on the loan amount is compounded monthly rests.