The Hindu Business Line : HDFC Bank in tie-up with AP postal dept

HDFC Bank has tied up with Andhra Pradesh Circle of Department of Posts to offer loans against postal instruments such as National Savings Certificate (NSC) and Kisan Vikas Patra (KVC) in the State.

Announcing this here at a press conference on Thursday, Mr Biju Pillai, Vice-President and Business Head of HDFC Bank, said loans were offered in the form of an overdraft facility in 27 select post offices in the State.

The bank had announced similar tie-ups in Punjab and Karnataka. The public-private initiative is aimed at unlocking the financial opportunities for customers, mostly in the semi urban and rural areas.

EASY LOANS

He said the bank would give loans up to 90 per cent of the value of postal instruments, with a bar of Rs 50,000 on the loan amount. Interest rates would be charged only on the loan amounts. The customers need not pay any monthly instalments. They are, however, supposed to service the interest component every month.

Mr Pillai said the alliance was part of the bank's plan to expand the scope of the Loan Against Securities scheme it launched a few years ago.

In the beginning it used to be only against the shares, but the number of people in the country who owned shares was miniscule. "The bank has started expanding the scheme to other instruments such as mutual funds, insurance polices and bonds," he said.

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