LAD – Loan Against Deposits
It’s simple to borrow money against a fixed deposit to get quick access to cash.
Kanaka Mahalakshmi Bank LAD scheme is designed for the existing deposit holders of the Bank who can apply for either overdraft or loan facility against their fixed deposits according to their requirement within the maturity period of the deposit. If you have already invested in the fixed deposits of our Bank, then this is an easy and instant way of borrowing for your personal needs. A very convenient and useful product, it helps you avail Bank assistance without the need to pre-close your deposits before the contracted period and you can re-pay before the deposit matures.
Scheme Details:
| Margin Type | Margin |
|---|---|
| Loan Against Deposit | 85% of the face value or present value of the deposit |
| OD Against Deposit | 85% of the face value or present value of the deposit |
Interest Rates:
| Type | Rate of Interest (R O I) |
|---|---|
| Loan Against Deposit | Rate of interest is 2% over the deposit rate |
| OD Against Deposit | Rate of interest is 2% over the deposit rate |
Repayment:
- Loan amount should be repaid on or before the due date of the deposit.
- Monthly/Quarterly interest paid on the deposit is credited to the Loan Account.
- OD against deposit is valid for One Year, and interest on deposits paid Monthly/Quarterly is credited to OD Account.