Loan Against Securities

Against Pledge and Assignment of securities

Bank shall sanction loans / overdraft limits against the pledge of various eligible securities, as under:-

Loan Eligibility

• National Saving Certificate                                                85% of accrued value
• RBI relief Bonds                                                                                - do -
• Bonds of other institutions                                                                 - do -
• Insurance Policies                                                             90% of surrender value
• Industrial Shares / units of mutual funds                           50% of market value

Note:

1. The Bank shall get its lien / assignment registered on all such securities.
2. All industrial shares should be fully paid-up and in De-mat form only.
3. Overdraft limits shall be sanctioned for one year and renewable on yearly basis.
4. Maximum Limit of finance against Industrial Shares / Units of Mutual Funds shall be Rs.10.00 Lakh only (Rupees Ten Lakh Only).
5. The aggregate of Loans / Advances made against the security of shares should remain within the overall ceiling of 20% of the owned funds of the Bank.
6. The credit facilities under this segment may be sanctioned, without obtaining the personal surety / guarantee of any other member.