Purpose: This demand loan can be obtained for any domestic purposes.
Eligibility: Any RD Account holder (with a regular monthly installment of at least Rs 400/-) under the scheme after it has run for at least 12 months is eligible to apply for this loan.
Quantum of Loan: Twice the balance outstanding in the RD account at the end of 12 installments is granted as loan. This is subject to a condition that the minimum amount of loan is Rs 5,000/- and maximum loan amount is Rs 50,000/-.
Rate of Interest: The rate of interest is 10% per annum.
Security: RD Account upon which loan is taken stays as the security for this personal loan.
Repayment: The loan would be partially clean and partially secured by the overdraft amount in RD Account. Clean portion of the amount would have to be repaid within 24 or 48 monthly instalments with equated monthly instalments starting from one month after taking the loan till maturity of RD Account.