The Loan against deposits product is designed to provide term deposits holders of NESFB with the benefit of a loan facility at a subsidized interest rate, as compared to a regular personal loan product. This loan product will be exclusively offered to the existing term deposits (fixed or recurring) holders of NESFB. The customer can continue to earn returns on the deposit and at the same time can also meet his/her short term financing needs through a relatively cheaper loan.
The loan against deposit credit product is designed to assist the customer in liquidity management. By allowing customers to draw funds on the back of the security of a term deposit, the Bank will provide the customer with short term money for any kind of financial requirements without breaking his/ her term deposits. It prevents the customer from selling his/ her assets at a discounted value to fulfill his/ her monetary needs.
The main features of the Loan against deposits product are as follows –