Section 14 in National Savings Recurring Deposit Scheme, 2019
14. Loan.
(1)Subject to the provisions of sub-paragraphs (2) to (7), where an account has not become a discontinued account under sub-paragraph (2) of paragraph 6, the account holder by making an application to the accounts office in Form-5, may avail the facility of loan of the amount not exceeding fifty per cent. of the deposits made in the accounts after the account has been in operation for at least one year and twelve monthly deposits have been made in the account.(2)The amount of such loan shall be a multiple of ten rupees which may be repaid, at any time during the currency of the account in one lump sum or in equal monthly instalments.(3)Simple interest at the rate of two percentage points over and above the interest rate applicable to the account of the loan shall be payable in the following manner:-(a)in the case of repayment in one lump sum, interest at the rate specified in sub-paragraph (3), shall be calculated on the amount of loan from the date of withdrawal to the date of repayment;(b)in the case of repayment in equal monthly instalments, the amount of each instalment shall be in multiples of ten rupees and the number of instalments shall not exceed the number of months remaining for maturity of the account or the post maturity period for which the account is continued under paragraph10 or paragraph 11 and the interest at the rate specified in sub-paragraph (3) shall be calculated on the amount remaining unpaid at the end of each month from the month of withdrawal of the loan, and the total amount of such interest shall be payable in lump sum alongwith the last instalment of repayment of the amount of loan or in the month following the month in which the last instalment of the loan is repaid.(4)(a)During the maturity period of an account or its extension under sub-paragraph(1) of paragraph 6 or sub-paragraph (1) of paragraph 10, the monthly instalment of repayment of loan, if any, shall be payable alongwith the monthly deposits.(b)If an account is retained beyond the maturity period without any fresh deposits under sub-paragraph (1) of paragraph 11, monthly instalments of repayment of loan, if any, may be paid during the period of such retention.(5)Where, for any reason, the amount of loan or a part thereof has not been repaid or the interest thereon has not been paid by the account holder before the closure of the account, the outstanding amount due from him in this behalf shall be recovered from the amount payable to him or to his nominee or legal heir, as the case may be, on the closure of the account.(6)The amount of interest recoverable on loan repaid on any one occasion shall be rounded off to the nearest rupee and for this purpose the amount of fifty paisa or more shall be treated as one rupee and any amount less than fifty paisa shall be ignored.(7)The balance in the account for the purpose of loan on the date of application shall include all deposits including advance deposits.(8)(a)In case the interest to be recovered is more than the interest payable on the deposits, the account holder shall be paid the amounts of deposits minus the amount of withdrawal made.(b)The amount of interest to be recovered on the loan shall be reduced in order to make it equal to the amount of interest payable on the deposits so that the account holder may get back the net deposits.
