Post Office RD Scheme: If you are looking for a scheme in which you can generate a large amount of money by investing through small savings, then Post Office Recurring Deposit can be a better option for you. The recurring deposit scheme of the post office is for 5 years. At present 6.7 percent interest is being given on it. If you are thinking of doing some work by taking a loan, then loan facility is also available under this scheme of the post office. Instead of breaking this scheme, you can fulfill your financial needs by taking a loan against it.
Know here what are the terms and conditions of taking loan against Post Office RD?
Loan facility available after one year
This facility is given on depositing 12 consecutive installments in the five-year recurring deposit scheme of the post office. To avail this benefit, you will have to deposit money continuously for at least one year. After one year, you can take a loan up to 50 percent of the amount deposited in your account. You can repay the loan amount in lump sum or in equal monthly installments. Post office gives you this facility.
What is the interest rate?
Interest on the loan amount will be applicable at 2% + RD interest rate applicable on RD account. Interest will be calculated from the date of withdrawal to the date of repayment. If you are not able to repay the loan on time after taking it, then when the RD matures, the loan amount along with interest will be deducted from it. To avail the facility of loan against RD, you will have to fill the application form along with the passbook and submit it to the post office.
Other benefits of RD scheme
- Post Office RD can be opened with Rs 100, an amount that one can easily save. There is no maximum limit on investment in this.
- You get the benefit of compound interest on Post Office RD. Interest is calculated every third month. In such a situation, you get good profit in the form of interest in 5 years.
- A person can open any number of accounts in the Post Office Recurring Deposit Scheme. In this, apart from single account, joint account can be opened for three people. Post Office Recurring Scheme also has the facility to open an account in the name of the child.
- Maturity of RD account is in 5 years. But, pre-mature closure can be done after 3 years. Nomination facility is also available in this. At the same time, after maturity, RD account can be continued for further 5 years.