Loan against DDS (Daily Deposit Scheme):
Samata Co-Operative Development Bank Ltd provide Loan Against Daily Deposit Scheme (DDS) is a type of financial product offered by some banks and financial institutions. In this scheme, an individual can avail a loan by pledging their daily deposit account as collateral. Here’s a breakdown of the concept:
- Daily Deposit Scheme: This is a type of savings account where the account holder makes small, regular deposits (usually daily). The amount deposited can be fixed or variable, and it accrues interest over time.
- Loan Against Deposit: If the account holder needs funds before the maturity of the deposit, they can pledge the balance of their Daily Deposit Scheme account as collateral to get a loan. The loan amount is typically a percentage of the deposit balance