The biggest advantage of these small savings schemes is that if you need money for an emergency, you can also take a loan from your bank on the basis of these savings schemes.
Small Savings Schemes: We deposit money in small savings schemes to meet any major financial need of the future. The government has also run many small savings schemes to motivate people to save. The special thing is that the government has not made any change in the interest rates on these savings schemes. Account can be opened under this small savings scheme in post office or bank.
Small savings schemes are most popular in India in our country. Because in these the interest is more than other schemes, along with the money is also safe.
The biggest advantage of these small savings schemes is that if you need money for an emergency, you can also take a loan from your bank on the basis of these savings schemes. Here we are talking about those small savings schemes, on the basis of which you can take a loan at low interest rates.
National Savings Certificate
NSC ie National Savings Certificate is a low risk investment. You can take this scheme from any post office. This certificate is for 5 years. You can buy it for 1000 rupees in the same ratio. You also get income tax exemption by investing in National Savings Certificate. Interest is earned on NSC every year. But you will get its benefit only after the maturity of the certificate. At present, NSC is getting interest at the rate of 6.8 percent. If you buy NSC of 1000 rupees, then 1000 increases to 1389.49 rupees in 5 years.
NSCs are accepted by all banks and NBFCs as mortgaged property for loan. Therefore, you can take a loan on it by mortgaging it in a bank.
If the remaining maturity period is less than three years, then one can get a loan up to 80 percent of the value of this savings plan. Different banks charge different rates of interest for loans.
According to the website of State Bank of India, interest is charged at the rate of 11.9% for loans on these.
How to get NSC
NSC can be purchased at any post office by submitting the required KYC documents. Go to the post office and fill the NSC application form. The application form for this is available online as well as in all post offices. Submit self attested copies of KYC documents along with this application form. You must carry the original documents with you for verification.
NSC can be obtained by paying the amount of NSC you need.
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