Loan Against Securities to Help Consolidate Your Debt

A low-interest loan to pay off your debts

Indian Bank Loan/Overdraft (OD) Against NSC/KVP/ Relief Bonds of RBI/LIC Policies

This scheme helps borrowers get access to funds by pledging their securities such as National Savings Certificates (NSCs), Kisan Vikas Patra (KVP), Relief Bonds of RBI, Life Insurance Policies, etc. to the bank. While the main purpose of this loan is to help the borrower to meet any contingencies and personal needs such as a wedding, overseas travel and so on, it can also be used to consolidate the borrower’s high-interest debts thereby acting as a consolidation loan.

Features of Loan/OD Against NSC/KVP/RBI Relief Bonds/LIC Policies

Why this Loan?

  • The Indian Bank Loan/OD Against NSC/KVP/Relief Bonds of RBI/LIC Policies is meant for borrowers who want to avail financial assistance by pledging NSCs, KVPs, Relief Bonds, LICs, etc. for financial exigencies
  • Being a secured loan, borrowers can also avail this scheme as a consolidation loan and pay off their high-interest credit card debts and loans, hence consolidating their debts
  • This loan can be availed as a term loan or overdraft depending on the borrower’s needs

Loan Amount

  • The maximum loan amount allowed by Indian Bank under this loan is decided by the bank on a case-to-case basis


  • As of October 2020, the applicable interest rate to this loan is 10.80%


  • Loan: The loans against LICs must be repaid within 6 years and the loans against other securities must be repaid within 5 years
  • Overdraft: The overdraft must be repaid within 12 months

Security Needed

  • The bank accepts pledging of securities such as National Savings Certificates (NSCs), Kisan Vikas Patra (KVP), Relief Bonds of RBI, Life Insurance Policies, etc.

Margin Money (Borrowers Contribution to Total Cost)

  • The bank charges a uniform margin of 25% of the interest accrued on NSC/KVP/Relief Bonds and surrender value of the Life Insurance policy

Note: Margin money refers to the amount the borrower contributes to the overall amount required. The bank will cover the rest. So, if the total amount needed is Rs. 20 lakh and if the margin is 20%, the margin money comes to Rs. 4 lakh. The bank will provide the balance of Rs. 16 lakh.

Processing Charges

  • The bank charges 0.308% of the loan amount for processing this loan, with a minimum of Rs. 308

Documents Needed

  • Loan Application Form duly filled and signed by the applicant and co-applicant, if any
  • Two Passport Size Photographs of applicant and co-applicant
  • Personal ID Proof: Aadhaar Card, PAN Card, Passport or Driving License. PAN Card / PAN Card Issuing Letter is must
  • Signature Proof: PAN Card, Banker’s Verification, Driving License or Passport
  • Residential Address Proof (Any One): Aadhaar Card, Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
  • Income/Banking Proof for Salaried Professionals: Last 3 months’ salary slip, Form 16 or income tax returns
  • Original NSC, KVP, RBI Relief Bonds, Life Insurance Policy, etc.

Reference Facts

  • Indian Bank Website:
  • Headquarters: Chennai, Tamil Nadu
  • Call Centre Toll-Free Number: 1800 425 00 000