Such loan linked deposit scheme has the following broad features:
(1) The minimum amount of initial deposit should be atleast ` 200. Subsequent deposits
must be in multiples of ` 50.
(2) Deposits with HDFC earns 7% compound interest payable half yearly. The interest is
receivable only at the time of the withdrawal of the deposit.
(3) The deposits are for a minimum period of 18 months and the maximum period of 60
months.
(4) HDFC deposits are exempted from wealth tax upto ` 5,00,000 along with other
eligible assets.
(5) Loans are offered by the HDFC for housing purpose. The interest is charged
depending on the amount of loan taken. The interest rates on HDFC loans are now
reduced considerably.
(6) The loan repayment period may extend upto 20 years.

Advertisement

 

HDFC deposits are not attractive due to low interest rate. However, deposits are collected
by HDFC on a large scale as housing loan facility is linked with the deposits. The
procedure for granting loans is also lengthy and time consuming. However, middle class
people take loans from HDFC for housing purpose. Recently, the interest rate on housing
loan is brought down by HDFC along with other housing loan lending agencies. In addition,
income tax benefit is also available in the case of such housing loans.
In addition, HDFC also accepts other deposits from individuals. Deposits placed with
HDFC are exempt from Wealth Tax. There is no tax deduction at source (TDS) on interest
paid/credited upto ` 5000 per branch in a Financial Year. Loan against deposit is available
after 3 months from the date of deposit upto 75% of the deposit amount, subject to the
other terms and conditions. Interest on such loans will be 2% above the deposit rate. This
facility is not available for Easy Way Savings and deposits from minors.

Advertisement
The following two tabs change content below.
MT UVA- University, Vocational and Affiliated Education for BMS
13 Comments

Leave a reply

BMS.co.in is aimed at revolutionising Bachelors in Management Studies education, also known as BMS for students appearing for BMS exams across all states of India. We provide free study material, 100s of tutorials with worked examples, past papers, tips, tricks for BMS exams, we are creating a digital learning library.

Disclaimer: We are not affiliated with any university or government body in anyway.

©2020 BMS - Bachelor of Management Studies Community 

A Management Paradise Venture

Ask Us On WhatsApp
or

Log in with your credentials

or    

Forgot your details?

or

Create Account