Advance against Government/RBI Bonds

Purpose:

1. Personal Expenses

Eligibility:

1. Transferable and tradeable Govt/RBI bonds in Demat form

Limit of Loans:

1. Rs. 10 Lakh

Basis of Advance:

1. 90% of face value of bond in Demat form where interest is received regularly
2. 95% of accrued value of bond in Demat form where interest is received on maturity i.e. Cumulative scheme

Repayment Period:

1. 5 years in case of Loan or date of maturity of Govt /RBI Bond whichever is earlier.
2. Overdraft facility subject to annual review or date of maturity of Govt /RBI Bond whichever is earlier.

Rate of interest (Floating):

1. Floating PLR – 4.85= 10.75%
2. Present PLR @15.60% p.a. (w.e.f 20.06.2025)

Reset of Floating Interest Rate on Equated Monthly Instalment [EMI] based Loan:

1. Option to Switch ROI Type:
   Borrowers shall have the option to switch their loan from Floating Rate of Interest (ROI) to Fixed ROI and vice versa, subject to a maximum of two (2) switches in a financial year during the entire tenure of the loan.

1. Applicable Charges:
   A request charge of 0.50% shall be levied on the outstanding loan balance at the time of the switch, irrespective of whether the switch is from fixed to floating or floating to fixed ROI.

Penal Charges:

1. Penal charges in the range of 1% to 2% p.a. each, subject to maximum of 2% p.a. for non-compliance of terms and conditions of loan contract, till such time the same is complied with.

Security:

1. Govt/RBI Bond (Only transferable bonds or where our lien can be marked on Bonds)

Processing Fees:

1. Nil

Shareholding:

1. Rs. 1000/-

Documents Required:

1. Prescribed loan application form