At the request of customers, Demand loan will be granted against deposits lying to the credit of the depositor(s) to meet various needs of the customers

• DL-Term Loan
• DL-Over Draft

Followings loans to be treated as Demand Loans against borrowers own deposits:

• Advances made to a depositor against a deposit standing in his/her name singly or jointly with other depositor(s).
• Advances made to a guardian competent to borrow against a deposit in the name of his ward for the benefit of the ward.
• Advances made to a proprietary concern against a deposit in the name of its proprietor.

• Advances against deposits in the name of minors:
• Advances against deposits in the name of minors are allowed to natural guardian or guardian appointed by the court, by way of demand loan and/or overdraft by taking an undertaking from the guardian
• Advances against deposits standing in the name of minor should be allowed to the guardian only in his/her individual capacity for the benefit of the minor only and no advance be allowed to a partnership concern against deposit standing in the name of minor
• Advance against deposits to blind persons  Advance may be allowed to blind persons against their term deposits subject to the following guidelines in addition to the normal procedure followed in such types of advances:-
  • Advances against term deposits standing in the name of blind persons, singly or jointly with others, may be permitted after getting the term deposit discharged, if he/she is literate. He/she should discharge term deposit in the presence of an authorized official not below the rank of an officer and witnessed by two responsible persons known to the bank and attested by the officer concerned.
  • Terms & conditions of the loan, amount of loan, etc. should be read and explained to the blind person in the presence of two witnesses. The signatures of the witnesses for having done this should be obtained on account opening form.
  • Cash payment to a blind person should be made in the presence of two witnesses. While these witnesses should preferably be customers of the bank, bank officials other than the paying official may also sign as a witness.

Interest rate be charged as 2% more than the interest offered on deposits

Maturity Period remaining at the time of granting advances :

• Deposits opened within one month from the date of opening of fixed deposit - 30%
• Deposits opened between 1 Month and 2 Months -25%
• Deposits opened between 2 Months and 3Months - 20%
• Deposits opened Above 3 Months-15%
• OD against deposits-irrespective of maturity -25%

Original Fixed Deposit Receipt

direct link to service charges

Lien on the deposits and security creation should be noted in the CBS immediately after sanction of the loan as per the extant instructions.