Post Office Recurring Deposit: Post Office Recurring Deposit is a 5 year scheme. Currently it is paying 6.7 percent interest. But did you know that you can avail loan facility under Post Office Recurring Deposit Scheme?
Post Office Recurring Deposit: Are you looking for a scheme where you can invest small savings to generate a large amount? Then Post Office Recurring Deposit can be a good option for you. Post Office Recurring Deposit is a 5 year scheme. Currently it is paying 6.7 percent interest.
But did you know that you can avail loan facility under Post Office Recurring Deposit Scheme? If you need money suddenly and don’t see any way, then instead of breaking any of your schemes, you can meet the money requirement by taking a loan from Post Office Recurring Deposit. Find out here what are the loan terms on Post Office Recurring Deposits.
Loan facility available after one year
If you deposit 12 consecutive installments in Post Office’s five-year recurring deposit scheme, you will get loan facility. That means, to get this benefit, you need to deposit continuously for at least one year. After one year, you can borrow up to 50 percent of the total amount deposited in your account. You can repay the loan amount in a lump sum or in equal monthly installments.
What is the interest rate?
Interest on loan amount will be 2% + Recurring Deposit interest rate applicable on Recurring Deposit Account. Interest will be calculated from the date of withdrawal to the date of payment. If you do not repay the loan on time after taking it, if the recurring deposit is matured, the loan amount along with interest will be deducted. To get loan facility against Recurring Deposit, you have to fill application form along with passbook and submit at post office.
Other Benefits of Post Office Recurring Deposit
• Post Office Recurring Deposit can be opened with Rs 100, an amount that anyone can easily save. It has no maximum investment limit.
• You get the benefit of compound interest on Post Office Recurring Deposits. Interest is calculated quarterly. In such a scenario, you will get a good profit in the form of interest in 5 years.
• An individual can open any number of accounts in the Post Office Recurring Deposit Scheme. In this, apart from single, joint account can be opened by up to 3 people. There is also the facility of opening an account in the name of the child.
• Tenure of Recurring Deposit Account is 5 years. However, pre-mature closure can be done after 3 years. It also has the facility of nomination. At the same time, after maturity, the Recurring Deposit Account can be kept open for another 5 years.
