National Saving Certificate

It is a fixed income scheme that can be opened at a post office is known as the National Saving Certificate. The scheme is a low-risk product and is secure in nature. The NSC scheme is available at all NSC post offices. The main objective of launching this scheme is to make individuals learn how to make small or medium savings. Since the scheme is encouraged by the Indian Government, the risk is low in making investments in such schemes.

The main section who can avail of the benefit of this scheme is individuals. No Hindu Undivided Family and Non-Resident Indians are eligible to apply for this scheme. Here are the main eligibility criteria of the NSC scheme:

The eligibility criteria for investors to purchase the NSC are mentioned below:

The individual must be a citizen of India.
There is no age limit for individuals in order to purchase a certificate.
Non-resident Indians cannot invest in NSC.
Investments can be made with another adult or individuals can buy an NSC on behalf of a minor.
Under the NSC VIII Issue, HUFs and Trusts are not eligible to invest in the scheme.

Features of National Saving Security Scheme:

Minimum investment: The minimum amount one can invest in NSC is Rs 100. There are different denominations introduced by the Government of India like Rs 10,000, Rs 5000, Rs 1000, Rs 500, and Rs 100, one can choose accordingly. Initially, small investments can be made, and individuals can increase investments when feasible.

Tenure of maturity:

It ranges between 5-10 years. One can choose as per its convenience.

Rate of interest:

At present, the rate of interest is reduced from 7.9% to 6.8%. It is compounded annually. The interest is payable only at maturity. For example, an investment of Rs.100 will get the subscriber Rs.146.93 after 5 years of investment.

Nominations:

The family members including minors can be the nominee of your NSC. In case of the demise of the investor during the tenure of the scheme, the nominee will be able to inherit the scheme.

Different types of NSC:

Initially, the NSC IX Issue and the NSC VIII Issue were the two main forms of certificates available. However, as of December 2015, the Government of India stopped the NSC IX Issue. Therefore, only the NSC VIII Issue is available.

Loans against NSC:

The NSC can be used in the form of collateral to get a loan from the banks. However, the respective postmaster must authorize the transfer of the certificate to the bank.

Purchase of NSC:

After submitting the required documents, the scheme can be purchased at post offices.

Transfer of certificate:

You can easily transfer NSC from one post office to another. Transfer of certificate from one individual to another is also possible. However, the certificate will remain the same and the name of the new owner shall be written on the certificate and the name of the old owner will be rounded.

Advantages of NSC

Given below are the main advantages of investing in the NSC:

One of the main benefits of investing in NSC is the tax benefits that an individual can avail.
NSC scheme comes with a guaranteed return. Many individuals prefer the NSC scheme as it can provide a regular income after retirement.
Except for the interest that is earned in the final year, the remaining interest that is generated is tax-free.
In case individuals lose the original certificate, a duplicate certificate can be obtained.
Even after the maturity period, individuals get an option to continue investing in the scheme.
Transfer of the certificate is allowed from one individual to another. However, it is allowed only a one-time in the lock-in period.
The interest that is generated is compounded on a yearly basis and reinvested towards the scheme. Therefore, the invested amount of the individual increases without purchasing certificates.

Documents required to NSC:

The NSC application must be duly submitted.
Investors must submit original identification proof like Passport, Permanent Account Number (PAN) Card, Voter ID, Senior Citizen ID, Driving license, or Government ID for verification.
The investor must submit a photograph.
Investors must submit address proof such as a passport, telephone bill, electricity bill, bank statement along with a cheque as well as a Certificate or an ID card that has been issued by the Post Office.

What are the tax benefits one can avail of?

According to Section 80 C of the Income Tax Act, 1961, one can get benefits up to 1.5 Lakhs.
The interest is generated on NSC annually.
Tax Deducted at Source (TDS) is not applicable to National Savings Certificate. However, as per the marginal income tax rates, the tax must be paid for the interest that is earned.

Maturity period and premature withdrawal under the NSC

In most of the scenarios, the amount that has been invested towards NSC cannot be used before the maturity period of 5 years. In certain situations, premature withdrawal is allowed. Here are those cases:
In case the certificate holder is no more.
On the forfeiture of the certificate. However, the pledgee must be a Gazetted Government Officer.
If it is a court order that the invested amount can be withdrawn.

However, certain documents must be submitted by the certificate holder for the withdrawal of the funds. Given below are the list of documents that must be submitted:

You are required to submit the original National Saving Certificate

The NSC encashment form will need to be submitted.
Proof of identity.
The attestation of the guardian is compulsory in case the NSC was purchased on behalf of a minor.
In case the certificate holder passes away, the nominee can encash the invested amount by submitting Annexure 1 (registered at a post office) and Annexure 2 (legal evidence) forms.
In case the amount is withdrawn within a year, no interest will be paid. A penalty will be charged in case of early withdrawals as well. The maturity amount is paid by the post office by cheque.

Learn More

Personal Loan

A personal loan is a credit facility that does not require collateral and is offered by banks and NBFCs to employed individuals. IndiaLends, the largest online personal loan provider in the country, has assisted over 150,000 customers and collaborates with more than 70+ RBI-Approved partners to offer personal loans tailored to different customer profiles. Here are some notable features of the convenient personal loans available through IndiaLends.

Personal Loan Interest Rate

The interest rates offered to customers are subject to variation based on their individual profiles. Typically, loan rates begin at approximately 10.25%. To improve the likelihood of obtaining a loan at a lower interest rate, it is advisable to maintain a strong credit history. Ideally, a CIBIL score above 750 is considered favorable.

Personal Loan Tenure

The repayment period for a Personal Loan typically ranges from 3 months to 6 years, allowing borrowers to choose a tenure that aligns with their requirements. Whether one needs a short-term or long-term loan, they have the flexibility to select a suitable repayment duration. However, it is crucial to ensure that the Equated Monthly Installment (EMI) amount is manageable and can be comfortably repaid each month.

Documents required to apply for a Personal loan

Financial institutions typically require certain documents before approving and disbursing a loan. These documents include identification proof, address proof, a copy of the PAN card, salary slips, recent bank statements, photographs, ECS mandates, and post-dated cheques.

Personal Loan With Zero Pre-Payment Fee

Certain NBFCs offer customers the flexibility to fully repay the loan amount or make partial pre-payments towards the principal. However, specific terms and conditions are typically associated with such pre-payments. For instance, pre-payment is usually allowed after 12 months, and a pre-payment fee may be levied on the repaid amount. Nevertheless, these terms may vary depending on the product, so it is essential to seek clarification from your lender regarding pre-payment policies before the loan disbursal.

Low-Interest Personal Loan

As discussed earlier, the interest rates for personal loans can vary based on the customer's profile. IndiaLends employs algorithms to strive to obtain the most competitive interest rate product available for each customer.

Personal Loan From Banks

Banks are financial institutions registered with the Reserve Bank of India (RBI) and engaged in various activities such as accepting deposits and providing loans. In addition to universal banks, the RBI has recently introduced payment banks and small finance banks. However, only universal banks and small finance banks are authorized to lend to individuals. Applying through IndiaLends offers the simplest method to obtain a personal loan from the leading banks in the country. IndiaLends has established collaborations with renowned banks and NBFCs, including HDFC, ICICI, RBL, IndusInd, Kotak, Yes Bank, and more.

Personal Loan From NBFCs

NBFCs are non-banking financial institutions registered with the Reserve Bank of India (RBI), primarily engaged in lending to individuals and businesses. Unlike banks, NBFCs are generally not authorized to accept customer deposits. They rely on borrowing funds from banks for their lending activities, which often results in comparatively higher interest rates on Personal Loans than those offered by banks. Additionally, NBFCs tend to cater to a higher-risk profile segment, leading to higher acceptance rates for loan applications.

New To Credit Loans

Although CIBIL and Experian maintain records for more than 150 million individuals, a significant majority have never borrowed from an RBI-regulated financial institution that is a member of a credit bureau. As a result, these individuals lack a credit bureau record, meaning they have no credit history or credit score. Due to the absence of a credit file, they often encounter difficulties in securing loans from financial institutions. However, IndiaLends has forged special partnerships with various banks, enabling them to assist some individuals who are new to credit (with thin credit files) in accessing low-interest personal loans.

Recently Declined Personal Loan Application

A significant number of consumers face loan application rejections from banks due to factors such as inadequate credit history, limited affordability, insufficient supporting documents, and more. However, IndiaLends can assist some of these customers in obtaining affordable loans through collaborations with specialized NBFCs.

Banks and NBFCs Partners

IndiaLends has established partnerships with a comprehensive range of lending institutions, encompassing both prominent and smaller entities. Our collaborations include renowned banks such as HDFC, ICICI, SBI, Kotak, IndusInd, Tata Capital, Bajaj Finserv, IDFC First, IIFL, IndiaBulls, RBL Bank, DHFL, Aditya Birla Capital, American Express, among others, ensuring a wide array of options for our customers.

Loans For Phones / Desktops / Laptops And Tablets

IndiaLends offers easy installment personal loans starting from as low as Rs. 25,000 for customers who wish to purchase the latest gadgets, whether it's an iPhone 7 or a MacBook Pro. This allows individuals to acquire their desired gadgets through manageable loan amounts and easy repayment options.

EMI Without Credit Cards

While e-commerce marketplaces offer convenient EMI options for significant purchases, these benefits are typically limited to customers who already possess credit cards. Unfortunately, this privilege extends to only a small proportion of the population, approximately 10 million individuals across the country. However, IndiaLends provides an accessible solution through its online personal loan, enabling individuals to swiftly make large-ticket purchases on e-commerce platforms and convert them into affordable EMIs. This expands the opportunity for a broader segment of customers to enjoy the convenience of EMI-based shopping on e-commerce portals.

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A credit report serves as a financial report card, encompassing historical data regarding an individual's loans and credit cards. Various types of loan accounts are included, such as Credit Cards, Personal Loans, Home loans, gold loans, Car loans, Two-Wheeler loans, business loans, Loan against Property, Agriculture loans, and more. Each account provides detailed information about repayment history, loan amount, tenure, open and close dates, and other relevant details. Credit Bureaus utilize this information to assess the risk associated with an individual, resulting in a credit score. The credit score ranges from 300 to 900, and a higher score increases the likelihood of loan approval. In India, there are four credit bureaus—CIBIL, Experian, Equifax, and Hi-Mark—providing credit scores to individuals. IndiaLends has partnered with Experian and Hi-Mark credit bureaus to offer its customers free credit reports and analysis. Additionally, IndiaLends customers also receive complimentary credit report refreshments every quarter for the first 12 months.

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Personal Loan

A personal loan is a credit facility that does not require collateral and is offered by banks and NBFCs to employed individuals. IndiaLends, the largest online personal loan provider in the country, has assisted over 150,000 customers and collaborates with more than 70+ RBI-Approved partners to offer personal loans tailored to different customer profiles. Here are some notable features of the convenient personal loans available through IndiaLends.

Personal Loan Interest Rate

The interest rates offered to customers are subject to variation based on their individual profiles. Typically, loan rates begin at approximately 10.25%. To improve the likelihood of obtaining a loan at a lower interest rate, it is advisable to maintain a strong credit history. Ideally, a CIBIL score above 750 is considered favorable.

Personal Loan Tenure

The repayment period for a Personal Loan typically ranges from 3 months to 6 years, allowing borrowers to choose a tenure that aligns with their requirements. Whether one needs a short-term or long-term loan, they have the flexibility to select a suitable repayment duration. However, it is crucial to ensure that the Equated Monthly Installment (EMI) amount is manageable and can be comfortably repaid each month.

Documents required to apply for a Personal loan

Financial institutions typically require certain documents before approving and disbursing a loan. These documents include identification proof, address proof, a copy of the PAN card, salary slips, recent bank statements, photographs, ECS mandates, and post-dated cheques.

Personal Loan With Zero Pre-Payment Fee

Certain NBFCs offer customers the flexibility to fully repay the loan amount or make partial pre-payments towards the principal. However, specific terms and conditions are typically associated with such pre-payments. For instance, pre-payment is usually allowed after 12 months, and a pre-payment fee may be levied on the repaid amount. Nevertheless, these terms may vary depending on the product, so it is essential to seek clarification from your lender regarding pre-payment policies before the loan disbursal.

Low-Interest Personal Loan

As discussed earlier, the interest rates for personal loans can vary based on the customer's profile. IndiaLends employs algorithms to strive to obtain the most competitive interest rate product available for each customer.

Personal Loan From Banks

Banks are financial institutions registered with the Reserve Bank of India (RBI) and engaged in various activities such as accepting deposits and providing loans. In addition to universal banks, the RBI has recently introduced payment banks and small finance banks. However, only universal banks and small finance banks are authorized to lend to individuals. Applying through IndiaLends offers the simplest method to obtain a personal loan from the leading banks in the country. IndiaLends has established collaborations with renowned banks and NBFCs, including HDFC, ICICI, RBL, IndusInd, Kotak, Yes Bank, and more.

Personal Loan From NBFCs

NBFCs are non-banking financial institutions registered with the Reserve Bank of India (RBI), primarily engaged in lending to individuals and businesses. Unlike banks, NBFCs are generally not authorized to accept customer deposits. They rely on borrowing funds from banks for their lending activities, which often results in comparatively higher interest rates on Personal Loans than those offered by banks. Additionally, NBFCs tend to cater to a higher-risk profile segment, leading to higher acceptance rates for loan applications.

New To Credit Loans

Although CIBIL and Experian maintain records for more than 150 million individuals, a significant majority have never borrowed from an RBI-regulated financial institution that is a member of a credit bureau. As a result, these individuals lack a credit bureau record, meaning they have no credit history or credit score. Due to the absence of a credit file, they often encounter difficulties in securing loans from financial institutions. However, IndiaLends has forged special partnerships with various banks, enabling them to assist some individuals who are new to credit (with thin credit files) in accessing low-interest personal loans.

Recently Declined Personal Loan Application

A significant number of consumers face loan application rejections from banks due to factors such as inadequate credit history, limited affordability, insufficient supporting documents, and more. However, IndiaLends can assist some of these customers in obtaining affordable loans through collaborations with specialized NBFCs.

Banks and NBFCs Partners

IndiaLends has established partnerships with a comprehensive range of lending institutions, encompassing both prominent and smaller entities. Our collaborations include renowned banks such as HDFC, ICICI, SBI, Kotak, IndusInd, Tata Capital, Bajaj Finserv, IDFC First, IIFL, IndiaBulls, RBL Bank, DHFL, Aditya Birla Capital, American Express, among others, ensuring a wide array of options for our customers.

Loans For Phones / Desktops / Laptops And Tablets

IndiaLends offers easy installment personal loans starting from as low as Rs. 25,000 for customers who wish to purchase the latest gadgets, whether it's an iPhone 7 or a MacBook Pro. This allows individuals to acquire their desired gadgets through manageable loan amounts and easy repayment options.

EMI Without Credit Cards

While e-commerce marketplaces offer convenient EMI options for significant purchases, these benefits are typically limited to customers who already possess credit cards. Unfortunately, this privilege extends to only a small proportion of the population, approximately 10 million individuals across the country. However, IndiaLends provides an accessible solution through its online personal loan, enabling individuals to swiftly make large-ticket purchases on e-commerce platforms and convert them into affordable EMIs. This expands the opportunity for a broader segment of customers to enjoy the convenience of EMI-based shopping on e-commerce portals.

Credit Report

A credit report serves as a financial report card, encompassing historical data regarding an individual's loans and credit cards. Various types of loan accounts are included, such as Credit Cards, Personal Loans, Home loans, gold loans, Car loans, Two-Wheeler loans, business loans, Loan against Property, Agriculture loans, and more. Each account provides detailed information about repayment history, loan amount, tenure, open and close dates, and other relevant details. Credit Bureaus utilize this information to assess the risk associated with an individual, resulting in a credit score. The credit score ranges from 300 to 900, and a higher score increases the likelihood of loan approval. In India, there are four credit bureaus—CIBIL, Experian, Equifax, and Hi-Mark—providing credit scores to individuals. IndiaLends has partnered with Experian and Hi-Mark credit bureaus to offer its customers free credit reports and analysis. Additionally, IndiaLends customers also receive complimentary credit report refreshments every quarter for the first 12 months.

National Saving Certificate

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