Loan Against Deposits – The Maharaja Co-operative Urban Bank Ltd.

The Maharaja Co-operative Urban Bank Ltd. offers Loans Against Deposits to provide customers with quick access to funds without breaking their fixed or term deposits held with the bank. Under this facility, customers can avail a loan by pledging their Fixed Deposit (FD) or Term Deposit as security, while the deposit continues to earn interest as per the original terms. The loan amount is generally sanctioned as a percentage of the deposit value, subject to the bank’s internal policies and regulatory guidelines issued by the Reserve Bank of India. Interest is charged only on the loan amount utilized and is typically linked to the deposit interest rate as per bank policy. Customers are required to submit valid identification and authorization for marking a lien on the deposit. The loan must be repaid within the tenure of the deposit or as agreed with the bank. In case of non-repayment, the bank reserves the right to adjust the outstanding loan amount from the pledged deposit as per applicable banking regulations. This facility helps customers meet urgent financial needs while continuing to retain their savings and earn interest on their deposits.