Nature of Loan - LOAN ON RECURRING DEPOSIT
Loan against Recurring deposit is a great option for those looking to avail a loan at a better rate when compared to person loans where interest rates range from 14-16% p.a. according to your Recurring deposits rate of interest. Moreover, you will continue to earn interest on the deposit though you have availed a loan against it. Remember that you cannot close or break the Recurring deposit after availing the loan on account of ‘right to lien’ clause of the banks. Also, there will not be any kind of tax benefits or deductions for interest paid on this loan.