Blog on Banking Technology for Common Customer -- Click Here
Loans
against Term deposit :
Banks often lend against their term deposits, such as fixed deposits, cumulative deposits, recurring deposits, etc. The nature of the
facility granted against the security of term deposits may either be a loan or
an overdraft. The nature of charge is a pledge in this case.
Margin and
rate of Interest:
Normally banks lend up to ninety percent of the
deposit amount. The rate of interest charged is above the interest rate offered
on the deposit.
Deposit in the
name of a minor:
No loan can be granted against the security of
deposit receipt standing in the name of a minor.
Loan
against Gold Ornaments :
1. The amount of loan on ornaments depends upon the
market value and purity of the gold. Normally banks keep a margin of around 30
% on the market value of ornaments.
2. The rate of interest varies with the purpose of
the loan.
3. The repayment period depends upon the purpose of
the loan. If the loan is for agricultural purposes, the repayment period
normally coincides with the harvest and marketing of the produce.
4. On the closure of the loan, the ornaments should be
returned to the pledger or his / her representative (authorized).
5. Even after the closure of the loan the banker can hold
the ornaments in case other loans are due under the same name.
6. Normally banks appoint appraisers for the purpose
of appraising the purity of Gold ornaments.
7. The loan granted under this category is also
subject to NP.
No comments:
Post a Comment