Post Office’s small savings scheme Recurring Deposit (RD) is quite popular among the customers. Customers get many types of benefits in this scheme. If you need a loan, you can also get a loan at a lower interest rate. Today we are giving you information about loan available on RD account from post office.
Post office’s small savings scheme RD i.e. Recurring Deposits (RD) is very popular among the customers. Post office RD accounts mature after five years once opened. If the customer wishes, he can extend the RD account for five years. However, during this period the interest rate will remain the same at which the account was opened.
Along with this, customers can also take loan on RD account. If you are planning to take a loan on RD account. Here we are giving you detailed information about the loan available from post office on RD.
You can take loan against RD
If you are planning to take a loan against RD opened in the post office, then there should be 12 installment deposits and the account should be continuous for one year.
How much loan do you get?
The RD account holder gets only 50 percent of the balance in his account as loan from the post office. With this, customers can repay the loan amount in one go or in installments.
How much interest will have to be paid on the loan
For this loan taken from the post office , the customer will have to pay 2 percent more interest than the interest rate of RD. If you are getting 6.3 percent interest on RD, then the interest rate for the loan will be 8.3 percent.
What will happen if the loan is not repaid?
Customers can withdraw money from their account by claiming maturity only after full repayment of the loan taken from RD. For this they will have to repay both their loan and interest in full.
How to get loan
To take a loan on RD account, you will have to go to your nearest post office and fill the loan related form along with the passbook. You will get the loan from the post office only after all the necessary formalities are completed.
