As per the Housing Finance Companies (NHB) Directions 2010, no premature withdrawal is allowed for a period of first 3 months from the date of deposit subject to regulatory conditions. In case of premature withdrawal after the expiry of 3 months, the following rates shall apply.

• After three months but before six months – The maximum interest payable shall be 4% p.a. for individual depositors & no interest in case of other category of depositors.

• After six months but before the date of maturity – The interest payable shall be 1% lower than the interest rate applicable to a public deposit for the period for which the deposit has run.

• If no rate has been specified for the period for which the deposit has run – 2 % lower than the minimum rate at which the deposits are accepted.

• For premature withdrawals of deposits, the duly discharged FDR with a revenue stamp of requisite value must be surrendered to the company. Premature withdrawals of single or jointly held fixed deposits shall be processed only after such a request is signed by all the depositors along with FDR duly discharged and a cancelled cheque leaf should be submitted.

• In the event of the death of a depositor, the Company may repay the Deposit prematurely (irrespective of the lock-in period) to the surviving depositor (which in the case of joint holders will be the first in the sequence of applicants in the Application) or to the nominee/ legal heir(s) of the deceased depositor, upon the request of surviving depositor/s/nominee/legal heir, as the case may be, and only subject to the submission of proof of death and other requisite documents to the satisfaction of the Company.