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Punjab & Maharashtra Co-operative Bank Ltd. – Loan against Securities

The Punjab & Maharashtra Co-operative Bank Ltd. (PMC bank) started its operations first time on 13th February, 1984. Within a short span of just 16 years, it has achieved ‘scheduled’ status on 29/01/2000 and is the youngest co-operative bank to achieve the status.

Purpose: In order to meet the unforeseen and urgent commitment, a personal loan against liquid security such as NSCs, KVPs, Life Policies, Govt. Bonds, shares, etc. can be acquired.

Quantum of Loan: In case of Overdraft against shares of reputed companies, the maximum amount of loan is Rs. 10.00 Lakh. In case of other securities such as Govt. securities, NSCs, Life policies, etc. there is no limit for advance.

Margin:

In case of Demat shares – 50 %

In case of L.I.C. Policies – 15% of Surrender Value

In case of other securities – 25%

Rate of Interest:

For Overdraft – 13.50 % p.a.

For Term Loan – 12.00 % p.a.

In case of Shares and Units of Mutual Funds – 13.50% p.a.

Repayment: Till the maturity of security or maximum period of 5 years in case of Term Loans whichever is earlier.

Security: Pledge / Assignment of the Liquid Securities.

Guarantee: One / Two solvent third parties

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