PNB Bank Application form for loan against Deposit

PNB Bank Application form for loan against Deposit (Application form advance against deposit PNB 308 (R))

PNB Bank Application form for loan against Deposit (Application form advance against deposit PNB 308 (R)) Download

The PNB-308 (R) form is Punjab National Bank’s standard application used by depositors to secure a Demand Loan or Overdraft facility using their Fixed Deposits (FD) or Recurring Deposits (RD) as collateral (p. 1). [1]

Here are the key points and conditions outlined in the document, organized by section:

1. Account and Security Particulars (Page 1)

Deposit Details: The borrower must declare the deposit type (FD/RD), ownership type (self or third-party), account number, opening/maturity dates, interest rate, and total accrued value (p. 1).
Lien Disclosure: Any existing liens or financial obligations already marked on the deposit must be declared upfront (p. 1).
Credit Choice: The applicant can choose between a Demand Loan or an Overdraft (OD) facility (p. 1).
No Auto-Renewal: If a Demand Loan is selected, the automatic renewal facility for the pledged FD/RD will be blocked (p. 1).

2. Bank’s Rights & Recovery Terms (Page 2)

Right of Set-off: The bank is authorized to clear outstanding loan balances by directly pulling funds from the applicant’s savings, current, or any other account (p. 2).
Cross-Collateralization: The pledged deposit serves as security not just for this loan, but also as a guarantee for any other present or future financial liabilities the borrower owes to Punjab National Bank (p. 2). [1]
Interest Rate Adjustments: For loans backed by multiple deposits, the bank reserves the right to change the loan’s interest rate based on the weighted Return on Investment (ROI) whenever any of those deposits mature or close (p. 2).
Surplus Settlement: If the bank liquidates the deposit to cover the loan, any remaining surplus can be credited to a specified savings/current account, put into a new FDR, or sent via a Pay Order/Draft (p. 2).
No External Encumbrance: The applicant must officially confirm that the deposit is not already pledged to another bank, financial institution, court, or under any legal restraint (p. 2).

3. Third-Party Depositor Consent (Page 3)

Third-Party Pledging: If the loan seeker is not the owner of the deposit, the actual depositor must complete and sign a formal consent section to permit the bank to issue a loan to the third-party borrower (p. 3).
Tax Implications (TDS): Even if the deposit is used as security for someone else’s loan, the Interest income and Tax Deducted at Source (TDS) will continue to accumulate and be deducted under the name of the original deposit holder (p. 3).