Archive · 28 Aug 2026
NSC Can Be Used for Instant Loans
The National Savings Certificate (NSC) is a government-backed savings scheme that offers fixed returns over 5 years.
If you need money urgently, you can use your NSC as collateral to get a loan.
The loan amount, interest rate, and repayment terms depend on the lender's policies.
The NSC offers a 7.7% interest rate, compounded annually.
To get the loan, you need to fill out a form, submit your NSC and supporting documents, and complete the pledging process.
The lender will then check your details and approve the loan if everything is in order.
It's important to compare the loan's interest rate with the NSC's returns and understand the lender's terms before borrowing.
If you're unsure, you can seek advice from a financial advisor.
National Savings Certificate (NSC) can be used as collateral for loans during cash crunch.
Loan terms depend on the lending institution's eligibility criteria and policies.
NSC offers a 7.7% interest rate, compounded annually, for the July-September 2026 quarter.
To avail the loan, complete the required form, submit the NSC and supporting documents, and complete the pledging process.
Compare the loan's interest rate and other charges with the NSC's returns before borrowing.
- Who
- Investors with National Savings Certificates (NSC)
- What
- Using NSC as collateral for loans
- When
- During cash crunch or before maturity date
- Where
- At eligible lending institutions
- Why
- To obtain liquidity without encashing the investment
- Interest Rate
- 7.7% p.a.
- Tenure
- 5 years
- Minimum Investment
- ₹ 1,000
- Tax Benefit
- Section 80C benefits may apply
- Premature Encashment
- Generally restricted, except in permitted cases
- Loan Against NSC
- Available subject to lender terms