Post Office Savings Scheme: If you have invested in the recurring deposit scheme in the post office, then you can also take a loan against it if needed. Although experts say that you should take this loan (Loan against post office RD account) when you feel the need of funds. Investing in Post Office Recurring Deposit Scheme is also beneficial. A safe investment and get guaranteed returns.
This is the criterion to get the loan
You will get a loan against the Post Office Recurring Deposit Account only if you have deposited at least 12 consecutive installments. According to the official post office of India Post, your account has been running continuously for at least one year. You can take a loan up to 50 percent of the amount deposited in the RD account.
How much interest will be charged on the loan
If you take a loan against post office RD account, then you have to pay interest by adding 2% + interest rate applicable on RD account. The interest on your loan will be calculated from the date of withdrawal till the date of its repayment.
Interest in Post Office Recurring Deposit Scheme
If you want to invest in the Post Office Recurring Deposit Scheme, then you will get 5.8 percent annual interest on the amount invested at present. You can open an account for investing in this scheme by visiting any post office near you.
Repayment options
According to the India Post website, when a customer takes a loan against a post office RD account, then repayment can be done in lump sum amount at one go or can also be done in the form of monthly installment.
What happens if the loan is not repaid
If you do not repay the loan taken against the RD account under the Post Office Savings Scheme till the maturity of the RD, then both the loan and the interest amount are deducted from the maturity value of your RD account. For this loan, you have to go to your home branch post office and fill an application form with passbook.
