Indian saving bonds can be used as collateral for obtaining loans

In a notification released by finance ministry stated the Indian savings bonds, can be used as collateral for getting loans from banks.

The savings bonds were issued by the government to its officials in those years as a saving avenue who took voluntary retirement or retired at the time.

Notification stated that the scheme will be applicable for 7 7 percent Savings Bonds issued in 2002, 6.5 percent Savings Bonds issued 2003 and for 8 percent Savings Bonds issued in 2003.