PSB Bank Loan against Security of Bank’s own FDR from

PSB Bank Loan against Security of Bank’s own FDR

PSB Bank Loan against Security of Bank’s own FDR from Download

This document is the 2-page Punjab & Sind Bank (PSB) Form No. 108(A) (Revised) (loanasb.pd… p. 1). It is a bilingual (Hindi and English) application form used to apply for a credit facility by pledging the bank’s own Fixed Deposit Receipts (FDR) or other deposits as security (loanasb.pd… p. 1).

💰 Credit Facility & Interest Structure

Facility Form: Borrowers can use this form to apply for a Demand Loan, Overdraft, or Cash Credit facility (loanasb.pd… p. 2).
Interest Rate Linkage: The interest rate is calculated at a specified percentage above the Reserve Bank of India (RBI) rate, subject to a minimum defined floor rate (loanasb.pd… p. 1).
Discretionary Hikes: The bank holds the absolute right to increase the interest rate at any time to align with the market lending rates charged by other Nationalised banks (loanasb.pd… p. 1).
Flexible Repayment: The loan can be repaid in a lump sum or through defined monthly installments, though the bank holds an unrestricted right to demand complete adjustment at any time (loanasb.pd… p. 1).

🔒 Security & Continuing Guarantee

Deposit Pledging: The applicant must list specific deposit details to pledge, including the Type of deposit, Account number, Favouring name, Branch, Date, Amount, and Maturity Date (loanasb.pd… p. 1).
Continuing Security: The pledged deposit serves as a “continuing security” (loanasb.pd… p. 1). This remains true even if the loan account balance runs into credit, is reduced, or is temporarily extinguished (loanasb.pd… p. 1).
Automatic Renewal Continuity: If the underlying deposit is renewed for a further period, the renewed deposit automatically continues to be held as collateral until the loan, interest, and charges are paid in full (loanasb.pd… p. 2).
No Prior Encumbrances: The applicant formally declares that the deposit is free from any third-party claims or assignments and will remain unencumbered (loanasb.pd… p. 2).

⚠️ Forced Adjustments & Banker’s Lien

Premature Settlement on Default: If the borrower fails to pay the loan, interest, or bank charges on time, the bank can automatically liquidate the deposit to settle the account without prior reference to the borrower (loanasb.pd… p. 1).
Prepayment on Loan Recall: If the bank recalls the credit facility before the deposit matures, it is authorized to prematurely break the deposit to adjust the loan account, applying standard bank rules for prepayment interest (loanasb.pd… p. 2).
Right of Set-off & General Lien: Beyond standard terms, the bank possesses a strict right of general lien and set-off (loanasb.pd… p. 2). It can cross-adjust these deposits at any time without notice to clear any other actual or contingent liability the borrower owes to the bank (loanasb.pd… p. 2).

If you are filling out this pledge form, tell me:

Are you setting this up as a one-time Demand Loan or a flexible Overdraft account?
Do you want the monthly/quarterly interest from your FDR to automatically credit into this loan account?