Deposit loans are fully secured loans issued against the security of the deposits kept with the Bank, meant to meet the personal immediate needs of the Depositors.

• Purpose
• Purchase of consumer durables, computers, professional equipments etc.
• Marriage expenses of self, son, daughter or a dependent near relative.
• Medical Expenses incurred/to be incurred for self, spouse, children, dependent near relative.
  
• For education of self/spouse/ children/ near dependent relatives.
• Any other personal expenses of bonafide nature.
• Eligibility
• Individuals or institutions having Term Deposit accounts (Fixed deposit , Recurring deposit, AFD and RIP) with the Bank.
• Security
• Loanee has to pledge the duly discharged original deposit receipt with the Bank.
• A promissory note should also be executed for the loan amount and interest. If there is more than one depositor in an account all the depositors should jointly apply and execute the bonds.
• Conditions:
• The loan shall not be sanctioned on a deposit stand in the name of a minor except for the purpose such as education, treatment etc of the minor as per the directives of RBI to the guardian whose name stands in the deposit receipt.
• Interest due on a term deposit loan will not ordinarily be paid during the tenure of the loan.
• On due date the principle and interest shall be adjusted to the loan account and the balance will be paid to the depositor.
• The lien should be noted at the face of the fixed deposit receipt pledged.
• Loan should not be given on duplicate fixed deposit receipts.
• An acknowledgement receipt shall be given to the borrowers.
• Procedure
• The eligible person has to apply in the prescribed form with the original deposit receipt in the Branch office where the applicant maintains his deposit account against its security he wishes to avail loan.
• After verification the Branch will sanction the loan.
• Charges and other costs
• The charge levied is only of forms . Please visit the page of service charges in this site .
• Period
• Upto the maturity date of pledged deposit.
• Eligible amount
• Upto 90% of the deposit amount.
• No share linking.
• Repayment
• Customers are free to repay part amount of loan and/or accrued interest thereon at anytime. If the customer did not close the deposit loan A/C before due date the Bank will adjust the loan principal and interest from the deposit amount.
• Rate of interest
• 2% more than the rate of deposits shall be charged for the deposit loan.