Loans/Advances in the form of demand loans or cash credits/overdrafts granted against the security of the bank’s term deposit receipts subject to the procedure stated below.
| Term Loan | Deposit +1% |
|---|---|
| Cash Credit | Deposit +1.5% |
| Loan Against RD | Deposit + 2.00% |
> Loan can be availed against Term Deposit and Recurring deposit.
> Loan/Advances can be availed against the security of term deposit receipts issued in the name(s) of the minor(s) to the natural guardian mentioned in the receipt either singly or jointly with the minor(s) and against a declaration by the natural guardian that the advance raised is for the minor’s benefit with a ceiling in the loan amount which will be advised by the bank from time to time. (at present it is Rs 20,000/).
> Loans cannot be granted against deposits issued under “Minors’ Special Deposit Schemes”.
> Loan/Advances against term deposit receipts can also be made to the survivor(s) in cases of the deposit receipts in joint names with a mandate “payable to either or survivor” or “payable to anyone or survivors”.
> Foreign Currency loans may be allowed to depositor/third party without any ceiling subject to usual margin requirements.
> In case of FCNR deposits, the margin requirement shall be notionally calculated on the rupee equivalent of the deposits.
> Further, the facility of premature withdrawal of NRE/FCNR deposits shall not be available where loans against such deposits are to be availed of. The existing loans which are not in conformity with the above instructions shall continue for their existing term and shall not be rolled over/renewed.
> Loan against NRE/FCNR (B) deposits to third parties will be granted only when the depositor himself executes the Loan documents in the presence of Bank officials and a witness acceptable to the Bank. Advances to third parties against such deposits will not be granted based on Power of Attorney.
ADVANCES AGAINST NRE and FCNR deposits
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