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Loan Against Deposit

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Policy & Process Note:- Loan against FD

Loan may be granted against Mahindra Finance Deposits up to 75% of the Deposit amount. Loan will be granted to any depositor who has the live FD in our company which is more than 3 months old. The FDR will be marked with lien against the release of the loan.

A) Ticket Size –

Cumulative FD - 75% of FD investment amount carrying interest @ 2% per annum above the FD interest rate on cumulative cases.

Non Cumulative FD - The loan can be sanctioned, provided the interest on loan is recovered on maturity of loan or repayment of FD. Also the rate of interest on non-cumulative will be 2% above the IRR based on the frequency of interest repayment. The loan value will be linked to balance on maturity up to the maximum as per the below mentioned table.

FD Tenure Loan permissible against FD (Non-cumulative)
12 75%
24 75%
36 70%
48 65%
60 60%

Loan repayment – Customer is allowed to make the prepayment of the loan at any time of his/her convenience. The loan amount & interest accumulated must be paid by the customer to the nearby branch by mentioning the Loan/FD contract # .There will be no pre-closure penalty charges applicable to this loan. Customer is not allowed to make partial payments. All dues must be settled at one time.

On maturity - The outstanding loan together with interest shall be settled in one lump sum by the depositor or shall be adjusted on maturity of the deposit. The maturity payment for the Loan availed Deposits will be done only on receipt Original FDR at our Head Office(Worli) before 10 days of the maturity date. In case of delay, Company will not be liable to pay interest for delayed receipt of Original FDR.

However, the granting of loan will be at the sole discretion of the company.

C) Documentation -

A) Original FDR document with affixed revenue stamp and duly signed by all the holders at the backside of the FDR under repayment.
B) Application cum under taking letter
C) Cancelled cheque copy of the bank account (Should be same as per FD records) .If name is not imprinted on the cheque then bank statement or first page of the passbook copy reflecting the bank details of the holder.)
D) PAN copy, if not provided at the time of investment.


All amounts due either by way of interest or principal & any other charges(if applicable) will be recovered from the amount payable on maturity or premature withdrawal .

In case the depositor is a minor, NRI, loan against FD will not be granted.

The minimum amount of Deposit required for Loan against Deposit is Rs.10000 .

The granting of loan will be at the soul discretion of the Company.


Loan applications along with all applicable documents needs to be sent:

Mahindra & Mahindra financial Services Ltd.
Fixed Deposit Department
Sadhana House, Behind Mahindra Towers,
2nd Floor, 570 P.B Marg, Worli,
Mumbai Maharashtra -400018 Tel: 022 -66526000

© 2018 Mahindra Finance

CIN - L65921MH1991PLC059642

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