Loan Against Recurring Deposit

Those who have a Recurring Deposit in a Bank can avail loan against the deposit. In this case, the recurring deposit will be treated as a collateral by the bank and the depositor can avail 80% - 90% of the deposit value as loan amount. This will be a secured loan and any defaulted payment on the loan will be adjusted against the amount available in the recurring deposit account of the borrower. Interest levied on a loan against recurring deposit is lower than that which is applicable on a personal loan.

Given Below are Some of the Leading Banks in India that offer Loan Against Recurring Deposits:

ICICI Bank

ICICI Bank Recurring Deposit scheme offers loan against the RD. The depositor should make a minimum deposit of Rs. 500 each month and afterwards, in multiples of Rs. 100/-. The tenure for this scheme can range from 6 months – 10 years. This scheme also offers nomination facility.

State Bank of India

State Bank of India offers loan against Recurring Deposit held in the bank. Depositors can avail an Overdraft or loan for a maximum amount of 90% of the funds available in the recurring deposit account. The recurring deposit can be held for a minimum period of 12 months and a maximum period of 120 months. Passbook facility and nomination facility are provided.

Bank of Baroda

Bank of Baroda offers loan against Recurring Deposit held in the bank. Depositors can avail an Overdraft or loan of a maximum amount of up to 95% of the funds available in the recurring deposit account. The recurring deposit can be held for a minimum period of 12 months and a maximum period of 120 months. Nomination facility is provided. Defaulted payment on the loan will be adjusted against the amount available in the recurring deposit account.

Punjab National Bank

Punjab National Bank offers loan against Recurring Deposit held in the bank. Depositors can avail an Overdraft or loan against the funds available in the recurring deposit account. The recurring deposit can be held for a minimum period of 12 months and a maximum period of 120 months. Defaulted payment on the loan will be adjusted against the amount available in the recurring deposit account.