This year, the interest on small savings schemes for the second quarter starting from July 1, 2021 and ending on September 30, 2021, will remain the same as before. These savings schemes have been brought to give great relief to the people during the Corona epidemic.
The government had recently decided not to make any changes in interest rates on small savings schemes for the July to September quarter. According to the notification issued by the ministry, it was informed that this year the interest on small savings schemes starting from July 1, 2021 and ending on September 30, 2021, will remain the same as before. These savings schemes have been brought to give great relief to the people during the Corona epidemic. Investing money in these schemes gives you good interest.
Loans can be taken on these two small savings schemes
We will give you information about two such schemes which give good interest during investment. Which can be started with minimal money and there is no time limit for this. You can run it for as many years as you want.
Kisan Vikas Patra Yojana (Kisan Vikas Patra)
KVP currently gives 6.9% interest rate. The amount invested in this scheme will be in 10 years and four months. An investor can invest a minimum of Rs 1,000 in this. There is no maximum limit for investment in KVP, you can continue investing as long as you want. In this scheme, you can withdraw money even before time. But if you withdraw the money invested in this scheme within a year, then not only will your interest rate be affected but you may also have to pay a penalty. On the other hand, if you withdraw money between one year and two and a half years, then you will not have to pay a penalty but the interest rate will be reduced.
National Savings Certificate Scheme,
you can invest in this for five years, which gives 6.8% interest. The minimum limit to invest in NSC is Rs 1,000. While there is no maximum investment limit, you can invest as much money as you want. At the same time, only investment up to Rs 1.5 lakh will be eligible for tax deduction under section 80C. Under this investment can be made in any post office. Maturity is also given on this. Presently the interest on it is 6.8%.
Loan Against Small Savings Schemes
According to Bank of Baroda, up to 85% loan can be taken against these two small savings schemes if the remaining maturity period is less than three years. While the maturity is more than three years, you can get the loan amount further reduced to only 80%. An individual can also pledge the security for overdraft facility. According to the State Bank of India website, loans on these products charge an interest rate of around 11.9%. An investor can pledge these products only to banks, non-banking financial companies, public and private corporations, government companies and local authorities and institutions.
