Is the facility to create pledge, hypothecation or lien against Relief/Savings Bonds availabe to the investors to avail of loan facility by putting the Relief/Savings Bonds as collateral?
Yes. The facility to create pledge, hypothecation or lien against Relief/Savings Bonds is available as in case of other Government securities as explained at question no. 33 & 34. The Government of India has amended the notifications relating to 7% Savings Bonds, 2002, 6.5% Savings Bonds, 2003 (Non-Taxable) and 8% Savings (Taxable) Bonds, 2003 schemes allowing for pledge or hypothecation or lien of these bonds as collateral for obtaining loans from the scheduled banks w.e.f. August 19, 2008. However, such collateral facility is available only for the loans to be availed of by the holders of the bonds and not in respect of the loans availed of by third parties.
Related Questions
- Is the facility to create pledge, hypothecation or lien against Relief/Savings Bonds availabe to the investors to avail of loan facility by putting the Relief/Savings Bonds as collateral?
- Is the facility to create pledge, hypothecation or lien against Government securities available across all the loans?
- Are Government securities eligible for creation of pledge, hypothecation or lien?
