Purpose of the Loan:

The main purpose of the loan is helping the deposit holders to get financial help against their deposit at the time of need, and the advance is for immediate family or business expenses.

Loan amount and Eligibility:

Up to 80% of the balance in the deposit can be availed as Loan In the case of deposit stands in the name of the minor, the guardian may raise loan for the benefit of the minor.

Rules & Procedure for Loans against Deposit:

Application from the deposit holder for availing the facility against their deposit is needed. The deposit receipt should be duly discharged by the depositor/s on a revenue stamp on the back side without date. No advance should be granted against the deposit which have been transferred in the name of nominee (after the death of the depositor). Where the renewal is desired for a deposit against which advance is outstanding renewal should be made after closing of the loan account. Advance should not be made to third parties against minor deposit.

Rate of Interest:

2% Per annum higher than the deposit rate if the deposit stands in the name of the borrower. In case of advances against third party deposits, rate of interest applicable to other category of business advance depending upon the size of the loan is charged. We also grant Advances against deposit of other Branches of CUB.

For further clarifications and your business needs kindly contact the nearest City Union Bank Branch

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