Demand Loan against Fixed Deposit

 ______________ Bank,

______________

Dear Sir,

On the security of Fixed Deposit(s) amounting to Rs. _________ made in your bank in my name at your New Delhi Branch, I/we request you to please allow me/us _________ Demand Loan of Rs. _________ Fixed Deposit Receipt(s) as hereunder is/are enclosed duly discharge to be kept as security in your possession.

F.D.R.No. Dated  __________ Amount Rs. ___________.

In case you receive instruction from me/us to renew the Fixed Deposit Receipt(s), I/we agree to your bank holding the renewed Deposit Receipt(s) with/ without interest accrued thereon, as the case may be, as security in the same way as the original Deposit Receipt(s). I/We further agree that on the renewal of the Promissory Note in the account, my/our Fixed Deposit Receipt(s), will remain as security for the renewed Promissory Note in the same way as for the Original Promissory Note.

I/We hereby undertake not to call back the Deposit(s) until the Loan or Cash Credit with interest accrued thereon made by you to me _________ is fully adjusted. If at any time you wish to call back the Loan or Cash Credit you are at liberty to do so; and if I ________ fail to repay the Loan or Cash Credit with interest accrued thereon or any portion thereof. I/We hereby authorise you to appropriate any amount that may be necessary to get the Loan or Cash Credit granted to me __________ adjusted from the Fixed Deposit Receipt(s) handed over to you as security.

Yours faithfully,