If a member has invested in a bank fixed deposit/Recurring Deposit/Insurance Policies/National Saving Certificates etc., he/she can easily get a loan against it without having to break it. This is similar to a personal loan. However, the loan is structured as an overdraft facility against your fixed deposits.In case of a deposit with Janakalyan Thrift & Credit co-operative, you can borrow after three months of investing.
There is no specific tenure; you can avail of the loan till the deposit matures. If unpaid till maturity, the loan is adjusted against the fixed deposit proceeds. There are no prepayment penalties to foreclose the loan. There is no restriction on the end use of funds. It can be used to meet financial requirements, business, direct investment in India or for buying property.