As per the Housing Finance Companies (NHB) Directions 2010, no premature withdrawal is allowed for a period of the first 3 months from the date of deposit/renewal except in case of death of the depositor. In case of premature withdrawal after the expiry of 3 months, the following rates shall apply.

• After 3 months but before 6 months – No interest is payable on the deposit. Only the principal is payable.

• After 6 months but before the date of maturity - The interest rate payable is 2% lower than the interest rate applicable for the period for which the deposit has run. In case of no interest specified for the period run, interest payable will be 3% lower than the minimum rate at which the public deposits are accepted by the company.

• 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. However, no interest is payable on such repayments of deposits.

• 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 canceled cheque leaf should be submitted.