Now You Can Borrow Money on Your National Savings Scheme and Kisan Vikas Patra. As this Small Savings Scheme offers Hight Interest and It can Really Help when you Requires Money. These Two Schemes can Offer up to 85% of the Value of these Schemes. So Let us Find Out What are these Schemes and How much Loan You can Get on these Schemes
1- National Savings Certficate.
National Savings Certificate is a Five Year Product. You get 6.8% Interest on this. The minimum amount which an individual can invest is Rs 1,000 and in the Multiple of 1,000. i.e 2,000, 3,000 etc. There is No Maximum Limit on This But Usually, People Deposit a Maximum of 1.5 Lakh Rupees in this Scheme. As Only 1.5 Lakh Rupees is Under Section 80C For this Scheme. It means till 1.5 lakh Rupees You will Get Tax Benefits.
You can Purchase This Scheme from any Post Office. You get Yearly Interest in this Scheme. But This Interest is payable to you at the time of Maturity Only. Currently, NSC is Giving 6.8% Interest on
Kisan Vikas Patra
Currently, Under Kisan Vikas Patra (KVP) you are Getting 6.9% Interest. So According to this Interest rate Your Amount Will be Doubled in 10 years 4 months. An Investor can Invest a Minimum of Rs 1000 In this Scheme. There is No Maximum Limit Under This Scheme.
Unlike, Other Long Term Investment Scheme KVP allows Investors to Premature the Deposit. But There are Some Conditions for Premature Withdrawal. If You Withdraw KVP before the One Year of Purchase then You will Not Only have the loss of Interest but you have to pay the Penalty.
If you sell the Certificate Between 1 Year to 2.5 Years then you don’t have to pay any Penalty but You will have to face a loss in Interest. If You Take exit From KVP after 2.5 Years then you don’t have to pay any Interest and any Loss of Interest.
Loan on Small Savings Scheme
According to the Bank of Baroda Website If the Maturity Time is less than 3 Years then You can get Loan up to 85% of the Value. But if the Maturity Time is More than 3 Years then you can get up to an 80% Loan of the Value. A Person can Take Over draft Facility by Mortgaging this Investment
State Bank of India takes 11.9% on these Investment Options.
Investors can Mortgage these Products only To Banks, NBFC’s, Governments Local Authorities etc.