Small savings schemes are big investments. These schemes give better returns in the long term. Also, if needed, loans can also be taken through them. Let us know about two such schemes which are suitable for saving as well as loan at the time of emergency.
Kisan Vikas Patra
In this scheme, any person can start his investment with 1000 rupees, there is no upper limit. An interest of 6.9 percent is available on investing in this scheme. Earlier this scheme used to mature in 113 months, but now it has increased to 124 months.
National savings certificate
At present, the interest rate on National Savings Certificate is 6.8 percent. Along with better returns, security is also available here. Also, tax exemption can also be taken through 80C. Here one can start investing with just Rs 1,000. And after five years it will increase to Rs 1,389.49.
According to Bank of Baroda, up to 85% loan can be taken on both these schemes. But the condition of the loan will be that the maturity period is less than 3 years. Loan can be availed at 80% per cent of the face value with maturity period of more than three years. According to the bank’s website, the interest rate on this will be 11.9%.
