You also get the facility of loan under the post office RD scheme. If you suddenly need money and do not see any way, then instead of breaking any of your schemes, you can fulfill the need of money by taking a loan from Post Office RD.
If you are looking for a scheme in which you can generate a big amount by investing through small savings, then Post Office RD can be a better option for you. Post Office RD is a 5 year scheme. At present, interest of 6.7 percent is being given in this. But do you know that you also get the facility of loan under the Post Office RD scheme. If you suddenly need money and do not see any way, then instead of breaking any of your schemes, you can fulfill the need of money by taking a loan from Post Office RD. Know here what are the terms and conditions regarding loan on Post Office RD.
Loan facility available after 1 year
If you deposit 12 consecutive installments in the five-year recurring deposit scheme of the post office, then you get the loan facility. That means, to avail this facility, you will have to deposit the amount 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 pay the loan amount in lump sum or in equal monthly installments.
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 do not 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 have to fill the application form along with the passbook and submit it to the post office.
Other benefits of Post Office RD
- Post Office RD can be opened with Rs 100, this is an amount which anyone can easily save. There is no maximum investment limit in this.
- You get the benefit of compounding interest on Post Office RD. Interest is calculated every quarter. In such a situation, you get a 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, joint account can be opened for up to 3 persons. There is a facility to open an account in the name of the child also.
- The maturity of RD account is 5 years. But, pre-mature closure can be done after 3 years. It also has the facility of nomination. At the same time, after maturity, RD account can be continued for further 5 years.