Loan against Post Office RD Account: You can take loan against Post Office RD account only if you have deposited 12 consecutive installments.
Loan against Post Office RD Account: Extra money is needed many times in life. In such a situation, if you are facing trouble in raising funds, then you can take a loan against RD on the five-year recurring deposit scheme done at your post office. The post office provides this facility. However, it has some special terms and conditions. But immediately your work is done. That means you get help.
When will you get loan
You can take a loan against the RD account of the post office only if you have deposited 12 consecutive installments. According to the official post office of India Post, your account has been running continuously for at least one year. You can take a loan up to 50 percent of the amount deposited in the RD account.
Repayment rule
According to the information available on the website, when you take a loan against the RD account of the post office, then you can repay it in lump sum amount in one go or you can also do it as monthly installment.
How much interest will be charged on the loan
When you take a loan against your post office RD account, you have to pay interest by adding 2% + the interest rate applicable on the RD account. At present, the interest rate on Post Office RD is 5.8 percent per annum (quarterly compounded). The interest on your loan will be calculated on the date of withdrawal and repayment.
If the loan is not repaid
If you do not repay the loan taken till the maturity of the RD account, then both the loan amount and the interest amount are deducted from the amount of maturity value of your RD account. You have to go to your home branch post office and fill an application form along with passbook for this loan.
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