Frequently Asked Questions (FAQ'S)

Who is eligible to avail Gold loans? What security has to be provided

Anyone who is a member and owns gold ornaments can avail the loan.

To obtain the loan, you need to submit your gold jewellery (within the Karat range of 18 to 24 k) at your nearest SMSO branch. The loan amount will be sanctioned on the basis of gold valuation by duly appointed Jewel Appraisers which involves verification of its purity. The weight of stones etc. fixed on the ornaments will be deducted for the purpose of valuation.

What are the documents required for taking loan against gold ornaments? Are there any end-use restrictions involved?

To abide by the KYC (Know Your Customer) Policy of RBI and approved KYC norms of our Company, we insist to produce the following:-

  • Document of identity proof (Such as Aaadhar Card & PAN Card, Smart Ration Card, Driving License, Voter ID card, Passport etc.)
  • Two passport size photographs.
  • Two hundred rupees, Rs.100/- for Membership fees and Rs.100/- for opening Savings Bank Account.

There are no end-use restrictions in gold loans.

What is the rate of interest charged on such loans? How is the interestcalculated?

  • Our base rate of interest is 12 % per annum. That is, we charge Rs.1/- per Rs.100/- per month.
  • There are no pre-payment penalties.
  • Simple interest is charged, which the borrower has to pay at the specified periodicity, that is, from the 1st of the English Calendar Month to the 10th of the English Calendar Month.
  • The interest rate is fixed and calculated on a reducing balance basis, That is, the interest is calculated on the remaining Principal only in cases where Principal is paid.

What is the tenure of such loans?

Our gold loan products have a maximum tenure of one year. Whatever be the Loan to Value (LTV), interest needs to be remitted monthly.

How long will it take for me to get my gold loan?

Once you submit your Application Form, Demand Promissory Note and supporting documents, we shall give approval within a matter of minutes, provided everything is in order. All loan approvals are at the sole discretion of the Branch Head.

Are the pledged gold ornaments safe and secure with SMSO?

We know that these gold ornaments are very precious and favourite to you. So, we guarantee you that it will be in our safe hands in strong cash safes inside a strong room built as per the standards and specifications applicable to commercial banks. The pledged gold ornaments are also insured for full value. Moreover, security personnel and modern electronic surveillance technology are deployed to protect your beloved gold ornaments.

Do I require a Guarantor or Introducer for availing Gold loan? Do I need to open an account with a Bank?

No. Unlike other loans, there is no need for either a Guarantor or an Introducer and there is no need for a bank account. You have to open a Savings Bank Account with us. The loan amount will be credited to your Savings Bank Account from where you can withdraw the amount. The maximum amount that you can withdraw on a day is Rs.2, 00,000/-.

Can I get my loan amount credited to my Bank Account?

Loans can also be paid by means of Cheques (or) Demand Drafts, NEFT AND RTGS Modes. You have to provide your Savings Bank details the name of the branch you hold the account, the IFSC Code and MICR number.

How do I repay my Gold loan?

You are aware that the tenure of the loan is 12 months. You can repay the Principal within 12 months in equitable instalments or as you wish, from as low as Rs.100/- to a maximum of Rs.2 Lac. However, interest has to be serviced monthly, as per the terms of sanction. Repayments can be made in cash and part payment of Principal and interest can be paid at any branch of SMSO.. However, the pledged ornaments will be released/handed over only at the branch from where the loan was originally availed. Any amount can be repaid by way of Cash / Cheque/ RTGS / NEFT.

Is there any maximum and minimum limit for availing Gold Loan? What about the tenure of the loan, lock-in period, and prepayment penalties?

SMSO PERMANENT Nidhi Ltd Gold loans may be availed for any amount between Rs.1, 000 to a maximum of Rs.15 Lac. Loans are available for periods ranging from one month to one year. Our Gold loans do not have any lock- in-period and there are no prepayment penalties. You can repay earlier than the schedule as you desire.

Whether partial payments of loan and interest are accepted?

Members are free to repay part amount of loan and/or accrued interest thereon at anytime in order to reduce the interest burden on the loans. Interest is calculated on daily product basis on the amount of loan outstanding at the end of the day.

How can customers settle the loan account and get back the gold ornaments?

The member has to submit the Passbook (given to them at the time of taking loan) to the counter staff at the branches with a request to close the loan account. The staff will enquire into your account and inform you about the outstanding loan amount (Principal + Interest accrued). By depositing the outstanding loan amount with up to date interest, the loan account is closed. The branch head then hands over the ornaments to the customer against his/her acknowledgement.

What happens if the loan amount is not repaid on the due date?

In case, the loan amount is not repaid on or before the due date, that is, after the tenure of 12 months and even after serving the reminders, the jewels will be sold in Public Auction. The bid amount will be appropriated against the outstanding.. If the bid amount is higher than the outstanding, the remaining amount (after appropriation to the outstanding) will be returned to the borrower. Where the bid amount is lower than the outstanding, the shortfall will be collected from the borrower.

For receiving reminders periodically, members are requested to update their address and phone numbers as and when they change them.

Is there a possibility of damage to the ornaments at the time of appraising?

Appraising is done in the presence of the member only by our well experienced Appraisers. Due care is taken during appraisal to ensure that there is no damage to the ornament during any stage of appraising or storing.

What are the things that people should keep in mind while taking a gold loan?

The most important thing from the customer’s perspective is transparency, security and choice of loan product to suit individual requirements. Transparency would help the customer see for himself what he gets in return for what he pays. There should be no hidden costs and no nasty surprises. Security is about how well the gold is physically secured, and also about the internal systems and procedures at the company which ensure that there is no scope for any malfunction after the jewellery have been pledged. At SMSO PERMANENT Nidhi Limited, you will find that all these aspects are well taken care of.

What makes SMSO PERMANENT Nidhi Ltd different from other providers of gold loans?

In addition to the transparency, security and range of its gold loan products (as mentioned above), SMSO PERMANENT Nidhi Ltd distinguishes itself from others primarily on the basis of the ease with which gold loans can be availed from our branches. The only requirement is that borrowers present themselves at our branches with the jewellery and with a valid ID and address proof. Our streamlined and centralized systems and well- sketched procedures, promise that gold loan can be availed in a matter of minutes. Also, we offer the highest Loan to value (LTV) to those interested in availing the maximum amount of loan against their jewellery. We are able to perform this because of our elongated experience in gold loan business and with the heartfelt effort of our well experienced and professionally qualified managerial team; we have acquired the capability to handle the extra risk involved.

What are some of the gold loan schemes that SMSO Permanent Nidhi Ltd offers to suit its members from different income groups?

Whatever be the quantum of loan whether it is a High loan to value or Low loan to value, the interest applicable is the same.

Further, our products are well tailored not only to the income group of the customer, but to relevant considerations like how much loan customers would like to avail against jewellery, and their comfort levels with respect to the interest rate and periodicity of repayment of interest and principal. Incidentally, gold loans can be availed at our branches for amounts as low as Rs.1000 and as high as Rs. 15 Lac.

In case of default, when will be the gold jewellery be auctioned off?

In case of persisting overdue, as per our Auction Policy approved by the Board of Directors, the ornaments will be auctioned off only after giving sufficient notice to the borrower and public notice in News Paper. SMSO Permanent Nidhi Ltd serves a minimum of three reminders to its overdue accounts. We also send periodic SMS reminders to our customers to alert them to the overdue in the account. Moreover, we also send auction intimation prior to the auction.

Whom do I contact for more details?

Kindly get in touch with the staff at the branch nearest to where you are located. Information about branches convenient to you can be easily obtained from our website by following this link: www.smsonidhi.com
For addressing your complaints / grievances, feel free to contact:
The Chief Executive Officer
S M S O Permanent Nidhi Limited
# 37 Car Street, Triplicane, Chennai – 600 005 (India).
Phone : (044) – 2844 2139, 2844 5422, 2844 5084

What happens when the borrower dies? And how can the Jewel be claimed?

In case, the borrower dies, the nominee (or) any of his/her Legal heirs has to produce the following documents in order to claim the jewels.

First, the nominee (or) the Legal heir of the borrower (deceased) has to inform the Nidhi in writing, the death of the borrower. After that, he/she has to submit the following documents:-

  • Copy of Death Certificate of the borrower
  • Original Jewel Loan Passbook issued by the Nidhi
  • Claim form issued by the Nidhi
  • Legal Heirship Certificate (in case the borrower had not nominated anyone)
  • No objection letter from other Legal Heirs (where there are two or more Legal heirs).
  • Jewel Loan Closure Receipt.

Who are eligible to become a Member and to do transactions with SMSO?

Any Indian Citizen who is above 18 years of age can become a Member for availing any Service.

What is Registered Mortgage Loan?

A Registered Mortgage Loan is a Loan given on the security of a constructed property.

Who is eligible to avail Mortgage loans? What security has to be provided?

Anyone who is a member, satisfying the Know Your Customer Norms and owning a constructed property within City or CMDA Limits can avail the loan. (Note: Minors are not eligible).

Documents required for Know Your Customer Norms:-

  • Proof of Identity (PAN Card, Aadhar Card or any other photo identity card issued by a Government Agency).
  • Proof of Address (Aadhar Card, Ration Card, Sale Deed, Telephone bill, Property Tax bill, Water bill, Bank statement, Credit Card bill and telephone bill).
  • Three passport size photographs.
  • Two hundred rupees, Rs.100/- for Membership and Rs.100/- for opening Savings Bank Account.

What are the documents required for taking Mortgage loan? Are there any end-use restrictions involved?

The following documents are required for availing Mortgage Loan:-

  • Sale Deed of the property to be mortgaged Parent document of the property
  • Encumbrance Certificate for 25 years
  • Planning permit
  • Property tax receipt – up to date
  • Electricity bill – paid up to date
  • 2 Photographs of the Applicant
  • Photographs of the property – one in an elevated view and one covering the inner rooms.
  • Patta issued by the concerned authority
  • Any other document required to be submitted after scrutiny of the above
  • A legal opinion charge of Rs.2, 500/- is collected.
  • Application form.

Is there any maximum and minimum limit for availing Registered Mortgage Loan? What about the tenure of the loan, lock-in period, and prepayment penalties?

Mortgage Loans are available with tenures ranging from 5 years to a maximum period of 7 years.

The maximum amount that can be lent is Rs.15 Lac and the minimum is Rs.1 Lac. The tenure is for a period of 5 years and 7 years. There is no lock-in period. The pre-payment penalty will be 1% on the outstanding.

What is the interest rate of a Mortgage Loan and how can the Loan be re-paid?

The following are the interest rates:-

  • The interest rate is 14.5% per annum.
  • The interest is applicable for both 5-year and 7-year tenure.
  • Repayment has to be made in Equated Monthly installments.

What is the EMI for a 5- year loan and for a 7- year Loan for a sum of Rs.1 Lac?

The following table shows the amount to be remitted for a 5-year and 7-year Loan.

Loan Amount 5-year tenure 7-year tenure
1,00,000 Rs.2,350 Rs.1,900

Is there any fee for applying Registered Mortgage Loan?

A processing fee of 1% on the loan amount is charged. Further, GST @ 18% on the processing fee is to be paid.

How long will it take for me to get my Registered Mortgage loan?

Once you submit your Application Form, and supporting documents, we shall send it to our Legal Advisor for verification and scrutiny. On Approval from the Legal Advisor, the documents are put up before the Board for disbursement.

Do I require a Guarantor or Introducer for availing Registered Mortgage loan? Do I need to open an account with a Bank?

Yes. A Guarantor is required from whom a Guarantee Deed is obtained. You need to have or open a bank account with a cheque facility.

How do I repay my Mortgage loan?

You are aware that the tenure of the loan is 60 months and 74 months.. You have to submit Post-dated cheques to the value of the EMI amount. The cheques will be deposited on the 22nd of every English Calendar Month.

What would be effect, if the cheque gets bounced on the due date?

A cheque return charge (as charged by the bank) will be collected. Further, if the payment is made in the successive month, a compound interest @ 17% per annum on the accumulated interest will be recovered.

In case of default, what action will be taken by the Institution?

In case of persisting overdue, a notice will be sent to the borrower to his address. Even then, if you fail to pay the overdue, a Preliminary Auction will be sent. Even then, if you do not respond, your property will be brought for sale under Public Auction to appropriate the dues.

As per our Auction Policy approved by the Board of Directors, the property will be auctioned off only after giving sufficient notice to the borrower and public notice in News Paper. SMSO Permanent Nidhi Ltd serves a minimum of three reminders to its overdue accounts. We also send periodic SMS reminders to our customers to alert them to the overdue in the account. Moreover, we also send auction intimation prior to the auction

Whether partial payments of loan and interest are accepted?

As regards Mortgage Loan, partial payment of Interest and Principal is not allowed. You have to pay according to the EMI…

How can customers settle the loan account and get back the documents?

The member has to submit the Passbook (given to them at the time of taking loan) to the counter staff at the branches with a request to close the loan account. The staff will enquire into your account and inform you about the outstanding loan amount (Principal + Interest accrued). By depositing the outstanding loan amount with up to date interest, the loan account is closed. The branch head then hands over the documents to the customer against his/her acknowledgement.

Can I avail loan against Fixed Deposits and Recurring Deposits?

Yes. You can avail loan against your Fixed Deposits and Recurring Deposits.

If so, how much can I get a loan? And what is the interest charged?

You can avail loan on a fixed deposit receipt up to a maximum of 75% of the Deposit. For Recurring Deposit too, you can get a loan of 75% of the subscription paid. The interest on both the loans will be charged at plus 2% above the contracted interest.

Suppose, you have invested a deposit of Rs.10,000/- at an interest rate of 8% per annum, you are eligible to raise a loan up to Rs.75,000/-. The interest rate would be 10% per annum.

What are the documents needed to avail a deposit loan?

The following documents are needed to avail a deposit loan.

  • The Term Deposit Receipt (or) the Recurring Deposit Passbook duly discharged on a one-rupee revenue stamp.
  • An application requesting loan.
  • A promissory note.

(Please note that the Deposit Receipt (or) the Recurring Deposit Passbook will be retained by the office till the loan is closed).

How can I pay the interest for the above loans?

For Fixed Deposits, you need not pay the interest. The interest payable to your deposit would be adjusted against the loan account.

For Recurring Deposits, you need to pay the interest periodically.

What would be the tenure of the deposit loans?

For both the loans, the tenure is the period for which the deposit has been made. You have to close the loan account before the maturity of the deposit.

What if, if I do not close the loan before its maturity?

In that case, on the maturity date, the Deposit proceeds would be appropriated against the loan outstanding. The balance amount will be paid to you.

How can I make a Term Deposit and what are its salient features?

First of all, you have to satisfy the KYC Norms floated by the RBI.
Anyone who is a member, satisfying the Know Your Customer Norms (KYC) and producing the following documents can make a deposit,

Documents required for Know Your Customer Norms:-

  • Proof of Identity (PAN Card, Aadhar Card or any other photo identity card issued by a Government Agency).
  • Proof of Address (Aadhar Card, Ration Card, Sale Deed, Telephone bill, Property Tax bill, Water bill, Bank statement, Credit Card bill and telephone bill).
  • Three passport size photographs.
  • Two hundred rupees, Rs.100/- for Membership and Rs.100/- for opening Savings Bank Account.

After fulfilling the above requirements, you have to fill-up two forms one for opening a Term Deposit and the other for opening a Savings Bank Account.

What would be the rate of interest that you offer for a Term Deposit?

For your reference, we give below the rate of interest for Term Deposits:-

Period Monthly Interest (Normal) Monthly interest (Seniors)
6 months 7.00% 7.00%
12 months 7.10% 7.60%
24 months 7.50% 8.00%

How much amount can I invest for a Term Deposit? Is there any maximum amount fixed?

You can invest from as low as 5,000/- and up to a maximum of Rs.3 Lacs.

How can I make the payment for a Term Deposit?

A sum up to Rs.20, 000/- can be made by cash. Any amount above Rs.20,000/- is accepted in the form of Cheques.

Will I get the effective date of commencement of interest from the date on which I give a cheque?

Yes. Even for deposits made by way of cheque, the interest commences from the Cheque date.

Will I get the Term Deposit Receipt immediately on the date the deposit is made?

In the case of cash deposit (i.e. cash deposited up to Rs.20, 000/-, you can deposit receipt immediately.
For Deposits made by Cheques, the Deposit Receipts will be prepared only on the date of realization of the cheque. You will be intimated when the Deposit Receipt gets ready, (or) it will be despatched by courier.

Further, you can make the deposits in the following modes:-

  • As an Individual
  • As Either or Survivor
  • As Anyone or Survivors in order
  • As jointly

Can I make a deposit in the name of a minor?

Yes. You can make a deposit in the name of your minor son (or) daughter. But the deposited will be represented by Father& Guardian only till the minor attains major. All the deposit rules as applicable for normal deposits are applicable in the case of deposits made in the name of a minor.

Is Nomination facility available for Term Deposits?

Yes. You can nominate a person for your deposits. The Nomination can be registered.

What is the age limit fixed for a Senior Citizen Deposit?

The age limit for a Senior Citizen Term Deposit is 58 years (completed).

What is the age limit fixed for a Senior Citizen Deposit?

The age limit for a Senior Citizen Term Deposit is 58 years (completed).

Now coming to the payout of interest, how can I receive the interest?

Interest on Term Deposits is paid through the following modes:-

  • By directly crediting the depositor’s account into banks through RTGS.
  • By crediting the Savings Bank of the Depositor at SMSO.

Is quarterly mode of payment of interest available at SMSO?

No. Only monthly payment of interest is available.

Have I to pay income tax for the interest that I receive?

You can claim Income Tax exemption up to a maximum interest payout of Rs.5, 000/- per year.

What if, if my interest payout exceeds Rs.5, 000/-. Is there any alternative to get exemption?

Yes. You can claim exemption if your interest payout exceeds Rs.5, 000/- per year by the following means:-

  • If you are a senior citizen, by furnishing form 15-H quarterly.
  • If you are a housewife and below the age of 58, by submitting form 15-G.
  • If your income is purely from the interest earned on deposits and that you don’t have any other income, you can furnish form 16-G and claim exemption.

For others, Interest amount is subject to Tax Deducted at Source (TDS) as per provisions of Section 194-A, of the Income Tax Act, 1961. As such, TDS at the rate of 10% will be deducted from the total interest payout.

Can I pre-close a Term Deposit (or) a Recurring Deposit before it has completed a period of 3 months?

No. Term Deposits and Recurring Deposits cannot be pre-closed before it has completed 3 months. Only after completion of 3 months a Term Deposit can be pre-closed.

What is the interest that I get for a pre-closure of Term Deposit?

For a period up to 6 months, you cannot claim any interest for the Deposit.

What is the eligible interest rate if a Term (or) Recurring Deposit has crossed 6 months?

The eligible interest rate will be (-) 2% from the rate that prevailed on the date when the Deposit was made.

What about the excess interest that was paid for the deposit in question?

The excess payout of interest will be deducted from the maturity proceeds.

What about the excess interest that was paid for the deposit in question?If my Deposit Receipt is lost, what is the procedure for its retrival?

Once your Deposit Receipt is lost, you have to report to our office that your deposit receipt is lost and is not traceable.
Based on your letter, we will ascertain, whether you have availed any loan on the deposit.

If you had availed a deposit loan, the deposit receipt would be with us. Otherwise, you have to furnish an indemnity on a stamp paper of Rs.50/-, the contents of which would be typed and given to you. You have to get is notarised and return it to us. After processing, we will issue a duplicate deposit receipt to you.

How long will it take to issue duplicate deposit receipt?

It will take at least 10 days to issue a duplicate deposit receipt, provided all the necessary documents submitted are in order.

How can I avail a Loan on my Recurring Deposit?

You can avail a maximum of 75% of the total subscription paid by you. The other 25% will be kept to a minimum.

For example, if the total subscription paid by you is 10,000/- (assume, you have opened an Recurring Deposit .for Rs.2,000/- per month and that your R.D. has run for 5 months), the maximum loan that you can avail is Rs.7,500/-).

What are the formalities for availing Recurring Deposit Loan?

  • You have to discharge the Recurring Deposit passbook on a one rupee revenue stamp.
  • You have to sign a promissory note for the value of the loan.

Have I to pay interest for the Recurring Deposit Loan monthly?

Yes. You have to pay the interest monthly.

Can I remit any amount towards the Principal of the loan?

Yes. You can remit any amount from a minimum of Rs.100/- daily (or) at frequent intervals as you wish.

Recurring Deposit subscriptions are to be made on (or) before the date of opening of the Recurring Deposit. You can also leave a standing instruction by filling in a form so that the subscription will automatically get transferred to your Recurring Deposit Account from your Savings Deposit Account. You have to ensure sufficient balance in your Savings Deposit Account.

What is the maximum tenure for repayment of the Recurring.Deposit.Loan?

The maximum tenure will be before the date of maturity.

What if, if I cannot repay the amount before the maturity date?

On the maturity date, the maturity proceeds would be adjusted against the loan. The balance amount will be paid to you.

What is the Criteria for opening a Recurring Deposit with your Nidhi? The Criteria is the same as applicable for opening Fixed Deposits.

First of all, you have to satisfy the KYC Standards of the Reserve Bank of India. You have to produce the following copies of documents:-

  • Aadhar Card and PAN Card – mandatory (for proof of Identity or Address)
  • Family Ration Card
  • Lease Deed
  • Property Tax Receipt
  • Telephone Bill
  • Two Passport size photographs

You have to remit Rs.100/- for Membership Enrolment and Rs.100/- for opening Savings Deposit Account.

What is the current rate offered for Recurring Deposits?

The following are the terms and rates for Recurring Deposits :

  • Recurring deposit account can be opened by those who want to save regularly for a certain period of time and earn a higher interest rate.
  • In Recurring Deposit Account Minimum amount Rs.100/- and multiplies of 100/- is accepted every month for a specified period (1 year to two years) and the total amount is repaid with interest at the end of the particular period.

Features of SMSO Recurring Deposit Account :

  • Minimum amount that can be deposited is Rs. 100/- at regular intervals.
  • The period of deposit is minimum 1 year and maximum 2 years.
  • The most attractive rate of interest of 7.00% per annum .for one year and 7.50% per annum for two years with effect from 01st August, 2017
  • Interest calculated on Cumulative basis
  • Providing the loan facility .The loan can be availed upto 75% of the amount standing in the credit of the account holder
  • Interest for loan is +2% of the Deposit Interest.
  • For premature settlement, no penalty is levied.
  • For a subscription of Rs.100/- for one year, the maturity amount will be Rs.1,246/-
  • For a tenure of two year, the maturity proceeds will be Rs.2,588/-

All the Criteria applicable for Fixed Deposits are also applicable for Recurring Deposits.

What are the features of a Savings Deposit Account?

Features of SMSO Saving Account

  • Minimum amount of deposits for open a saving Deposit account is Rs. 100.
  • The money can be withdrawn by using withdrawal slip in the concerned branches.
  • Saving account is of continuing nature. There is no maximum period.
  • A minimum amount of Rs. 100/- has to be kept on saving account.
  • No loan facility is provided against saving account.
  • Enable the depositor to earn high rate of Interest @ 6.00% p.a based on daily minimum balance.
  • Maximum amount that can be deposited per day is Rs.2 Lac.
  • Maximum amount that can be withdrawn per day is Rs.2 Lac.
  • Nomination facility is available.
  • Savings Deposit Account can be opened as “Single” , ““Either (or) Survivor”, (or) “Jointly”, (or) Anyone or Survivor

Is Cheque facility available for Savings Deposit Accounts?

No Cheque facility is available. Only withdrawal slips are available for withdrawing cash.

Can I remit cash in Savings Deposit Account at any of your branches?

Yes, you can remit cash at any of our branches.

Can I withdraw cash at any of your branches?

No. Withdrawal from Savings Deposit Account is possible only from the home branch, i.e., the branch at which you have opened the Savings Deposit Account.

What is Savings Deposit Account and how can I open a Savings Deposit Account with SMSO?

  • Savings Deposit Accounts are similar to Savings Bank Accounts of Nationalised and Private Sector Banks.
  • Savings Deposit Accounts can be opened with a minimum balance of Rs.100/- .
  • The maximum amount in Savings Deposit Account that is eligible for interest is 1,00,000/-.
  • Interest @ 6% per annum is given on daily minimum balance.
  • Interest credited half-yearly i.e. during the months of September and March.
  • A maximum of Rs.2 Lakhs can be deposited or withdrawn from a Savings Deposit Account.
  • Amount can be withdrawn by means of withdrawal slips available at SMSO Offices.
  • Savings Deposit Accounts can be opened as “Individual”, “Either or Survivor”, “Jointly” or “Anyone or Survivor” modes.
  • No Loan Facility is available on Savings Deposit Accounts.
  • Amount can be remitted at any of our branches.
  • Fixed Deposits, Recurring Deposits and Savings Deposits can be opened in the name of minors also, who are duly represented by their natural guardian.

What are the requirements for opening Safe Deposit Lockers of your Nidhi?

First of all, you have to satisfy the Know Your Customer Norms. You have to submit the following documents.

  • Proof of Identity (PAN Card, Aadhar Card or any other photo identity card issued by a Government Agency).
  • Proof of Address (Aadhar Card, Ration Card, Sale Deed, Telephone bill, Property Tax bill, Water bill, Bank statement, Credit Card bill and telephone bill).
  • Four passport size photographs.
  • Two hundred rupees, Rs.100/- for Membership and Rs.100/- for opening Savings Bank Account.
  • You have to submit the Locker Application form.

What are the sizes in which the Lockers are available?

There are four sizes of lockers available. They are:-

  • Large
  • Big
  • Medium
  • Small

What is the deposit that one has to pay for availing the facility of lockers?

The following are the deposits to be paid:-

Size Caution Deposit in INR
Small 10,000
Medium 20,000
Big 25,000
Large 50,000

You can make the deposit depending on the size you choose.

How can I make my deposit?

You can make the deposit through the following means:-

  • Up to Rs.20,000/- by cash (or)
  • By cheque drawn in favour of SMSO Permanent Nidhi Limited
  • By Demand Draft drawn in favour of SMSO Permanent Nidhi Limited

What is the acknowledgement for my deposit?

A Caution Deposit Receipt for the amount you deposit will be issued to you. It will contain your locker details and your deposit amount.

Do the deposits carry any interest?

No. The deposits do not carry any interest.

When can I get back the deposit?

You can get the deposit refunded on closing of the Locker.

Have I to pay any rent for the locker?

No. No rent is levied. It is free of rent.

In what mode can I open my locker account?

Safe Deposit Lockers can be opened in the following modes:-

  • Self (Individual)
  • Either (or) Survivor
  • Jointly
  • Any one (or) Survivor

What is the time during which I can operate the Locker?

During Office Hours: i.e. from 9.00 A.M.to 12.30 Noon and from 01.30 P.M. to 3.30 P.M.

What is the procedure for closing the locker account?

  • You have to give in writing that you are closing the locker account.
  • You have to return the Caution Deposit Receipt for refund.
  • You have to return the keys.
  • You have to ensure that the locker is empty.

What if, If I lose my locker key?

  • You have to give a letter in writing.
  • You have deposit a sum of Rs.3, 000/- for opening the locker and issue of a new key.

For further details, please contact the branch near to you.

What is the Procedure for opening for opening Safe Deposit Lockers?

First you have to enrol as a member after satisfying the KYC Standards of the RBI.

For KYC Standards, you have to furnish the following :

  • Copy of your PAN Card for Identity Proof
  • Copy of your Aadhar Card for Address Proof
  • Copy of Family Ration Card (or)
  • Copy of Lease Deed of the Property in which you reside (or)
  • Copy of Telephone Bill
  • Four Passport Photographs
  • Two hundred rupees, one hundred rupees for membership enrolment and one hundred rupees for opening Savings Deposit Account.

Who can open a Safe Deposit Vault Account?

Anyone who is a member and who has attained the age of 18 can open a Safe Deposit Vault Account.

Can a Safe Deposit Vault Account be opened in the name of a Minor?

No. Minors can’t open a Safe Deposit Vault Account.

What are the different kinds of Vault’s available?

Safe Deposit Lockers are available in Large, Big, Medium and Small sizes.

What is the Deposit that one has to pay for availing the facility of Safe Deposit Lockers?

The following are the Sizes and the Deposit Amount that has to be paid.

Size Amount
Small ₹ 10,000 /-
Medium ₹ 20,000 /-
Big ₹ 25,000/-
Large ₹ 50,000/-

Will interest be paid for the Deposit?

No. No Interest will be paid for the Deposit. It will be treated as Caution Deposit. It is fully returnable on surrender of the Locker.

Have I to pay any rent for the Vault?

No rent is needed to be paid.

Where are the places at which Safe Deposit Lockers are available?

You can visit the Section Safe Deposit Lockers for getting information.

What is the acknowledgement for the Deposit made?

A Deposit Receipt to the value of the Caution amount will be issued to you.

What are the modes of operation of Safe Deposit Locker?

Safe Deposit Lockers can be operated in the following modes :

  • Individual
  • Either or Survivor
  • Any one or Survivor
  • Jointly

Can I make a nomination for the Safe Deposit Locker?

Yes. Nominations are accepted and Registered for Individual Accounts.

What are the hours of operation of Safe Deposit Lockers?

On any working day (other than Friday) —

09.00 A.M. TO 12.30 P.M.
01.30 P.M. TO 03.30 P.M.

SUNDAY’s –

09.00 A.M. TO 01.20 P.M.

What is the Criteria for opening Fixed Deposit in SMSO?

First of all, you have to satisfy the KYC Standards of the Reserve Bank of India.

You have to produce the following copies of documents :

  • Aadhar Card and PAN Card – mandatory (for proof of Identity or Address)
  • Family Ration Card
  • Lease Deed
  • Property Tax Receipt
  • Telephone Bill
  • Two Passport size photographs

You have to remit Rs.100/- for Membership Enrolment and Rs.100/- for opening Savings Deposit Account.

What is the Current Interest rate of your Deposits?

Our Fixed Deposits have a tenure of 1 Year and 2 Years.

The following are the interest rates offered:

Period Monthly interest
Scheme (Normal)
Monthly interest
Scheme (Seniors)
1 Year 6.75% 7.25%
2 Years 7.25% 7.75%

After getting enrolled as a member, you can opt for investing your amount in Fixed Deposits, as you desire, on the above interest rates.

How can the interest be paid for my fixed deposit?

Interest is payable monthly through the following modes:-

  • Interest will be credited to your Savings Deposit A/c with us.
  • Interest will be credited to your Bank Account also for which you will have to furnish your Bank Account Number, Name of the Bank where you hold the account, IFSC Code of the Bank and the MICR number.

When will the interest get credited?

Your interest will be credited on the 31st of every month.

Could you please tell us more about the mode of operations of Fixed Deposits?

Fixed Deposits can be opened as “Individual”, Either or Survivor”, “Anyone or Survivor” and “Jointly”.

In such cases, all the members have to enrol as member so as to satisfy KYC norms.

What are the salient features of your Fixed Deposits?

  • You can make the deposits for periods ranging from 12 months to 24 months.
  • In case, you need money for emergency, you can avail a loan upto 75% on the Principal value of the Deposit.
  • The Interest rate for the loan will be +2% above the contracted rate. For example, if you are paid an interest of 8% per annum, the loan interest will be 10% per annum.
  • You need not pay any interest for the loan. The interest payable to your deposit will be adjusted against the loan monthly.
  • You can also pay part amount towards the Principal monthly or as and when you wish to remit.
    The tenure of the loan will be the tenure of your fixed deposit.
  • For Senior Citizens who have completed the age of 60, ½% extra will be paid subject to a minimum deposit of 10,000/- and for a minimum tenure of 1 year.
  • These are some of the salient features of our fixed deposits.

What happens if I do not repay the loan availed on my fixed deposit?

In that case, on the maturity date, the loan outstanding will be appropriated against the maturity proceeds and balance will be paid to you.

Can I make nomination for my deposits?

Yes. You can make nomination for your deposits, in the case where you have opened it as an Individual Account.

What happens when I lose my fixed deposit receipt?

In such cases, you have to submit a letter first informing us of the lost. After that, our Office will search whether you had availed any loan on the deposit. (If you had availed a loan on your deposit, the deposit receipt will be with us). In case, you had not availed any loan, you have to furnish an indemnity bond, indemnifying the Nidhi of any loss that can occur on issuing a duplicate FDR. The procedure will take at least five days or depending upon the submission of the documents by you.

What is the procedure for a claim on the Deposit, when any of the deposit holders die?

  • If the deposit is an Individual account and the Individual has nominated a kin as his successor, the kin has to produce a death certificate of the demised depositor and claim the amount.
  • Where the deposit has been made as “Either or Survivor” (or) Any one of Survivor (or) Jointly, the claimants have to submit a letter informing the Nidhi of the demise of one of the depositors, submit a letter informing the demise of the depositor along with a copy of the death certificate and claim the amount.
  • Where the depositor has not made any nomination, the claimant/claimants have to submit a death certificate and legal heir certificate and thus can claim the deposit amount.
  • For more detailed information, you can visit the nearest branch.
    • Interest amount is subject to TDS subject to Section 194-A of the Income Tax Act of 1961
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