Loan interest

Modified process for easier settlement at maturity

The Post Office said it receives numerous representations from RD or recurring deposit account holders regarding the need to credit the amount of outstanding RD loans / interest to the expired RD accounts in the software platform. . After examining the matter, the Post Office made the necessary changes.

As a result, post offices that are compatible with the Basic or CBS banking solution will deduct the RD loan amount / unpaid interest from the RD account due. The deducted amount will be adjusted via the office account at the time of payment of the RD due. In other words, the outstanding RD loan / interest on matured RD accounts will not be collected from account holders at the time of payment of the value at maturity.

In the event that the loan is not repaid until maturity, the loan plus interest will be deducted from the maturity value of the RD account.

Post office RD accounts mature in 5 years (or 60 monthly installments) from the date they are opened. Accounts can be extended for an additional 5 years by submitting a request to the relevant post office. The interest rate applicable during the extension will be the interest rate at which the account was originally opened.

An RD postal account can be kept for up to 5 years from the expiration date without a deposit as well.

Loans can be taken out of RD accounts after depositing 12 installments and the account is maintained for 1 year. The depositor can avail the loan facility up to 50% of the account credit balance. The loan can be repaid all at once or in equal monthly installments. Interest on the loan will apply at 2% + RD interest rate applicable to the RD account.

To subscribe to Mint newsletters

* Enter a valid email address

* Thank you for subscribing to our newsletter.

Never miss a story! Stay connected and informed with Mint. Download our app now !!

Source link