Loan against NSC/KVP

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Loan against NSC/KVP

To meet contingencies and/or any personal need but not for speculative purposes.

Features

  • Avail Loan up to 60% of Face value together with accrued interest. No ceiling on maximum loan amount provided stipulated margin is maintained.
  • Low interest rates charge on a daily reducing balance.
  • Loan processing charges: 0.35% of loan amount with a minimum of Rs. 500/- and Maximum of Rs. 2,500/- plus applicable GST
  • No prepayment penalties. · Margin: 40% of Face value together with accrued interest.
  • Security: NSCs/KVPs are required to be transferred by the issuing Post Office as a security in the name of the Bank
  • Type of loan: Demand Loan & Overdraft
  • Availability: Through Branches only.
  • Interest Rate: 2.50% over 1-Year MCLR (at present 11.15% w.e.f. 15.05.2024).
  • Please refer the interest rate page

Eligibility

DAF investors above 18 years of age subject to following conditions

  • An individual applying for a loan should be at least 18 years old.
  • An individual applying for a loan should be the owner of the NSCs/KVP against which a loan is being availed. These certificates should be in the name of the person wishing to obtain a loan and a loan cannot be availed against NSCs/KVP which are in someone else’s name.

Eligible security

  • Loan available against the security of National Savings Certificates (NSCs) VIII Issue/ Kisan Vikas Patras (KVPs).

Repayment

  • Aligned with terms of maturity of NSC/KVP. At no point of time, the outstanding in loan a/c should exceed the maturity value of the certificates pledged.

Frequently Asked Questions

Loan Against NSC / KVP is a general-purpose loan given by SBI. It can be availed to meet any contingency/ personal need but not for speculative purposes.

Loan is normally sanctioned on the same day of application.

Yes, after opening a saving Bank account, you may apply for it.

All existing customers maintaining satisfactorily conducted accounts can get this loan from SBI. Even non-customer may avail after opening of savings Bank A/c with SBI.

60% of face value of NSC/KVP, together with accrued interest. No ceiling on maximum loan amount, provided stipulated margin is maintained.

0.35% of loan amount with a minimum of Rs. 500/- and maximum of Rs. 2,500/- plus applicable GST.

Maximum repayment period is fixed matching with maturity of NSC / KVP.

1 Year MCLR + 2.50%, i.e. 11.45% per annum w.e.f. 15.08.2024
Please note that Interest Rate is subject to change as per Bank’s policy.

40% of face value plus accrued interest of NSC /KVPs.

In case of demand loan, entire loan amount is credited into customers SB account (after recovery of processing charges). In case of overdraft, a new loan account is opened with loan amount as overdraft limit. Customers can use this loan account through INB or cheque book.

No

The NSC / KVP are required to be pledged by the issuing post office as a security.

In case of demand loan, customer can repay the loan by way of EMI. In case of overdraft, customer can close the account by paying entire outstanding plus accrued interest.

Yes, the customers shall pay interest to the Bank on month-to-month basis (especially if reasonable number of transactions are not happening in the overdraft account).


* T & C applies. For any further query, please feel free to write to agm5.pbpl@sbi.co.in/ dgmecom.pbbu@sbi.co.in

Alternatively, for assistance, you may call at 1800 1234 also.

Last Updated On : Friday, 13-09-2024

Interest Rates

8.50%* p.a. onwards

w.e.f. 05.04.2024

*T&C Apply.

 

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