# Loan Against NSC, KVP and SSY: Pledge Rules, LTV and Rates

You have an NSC and you need money this month. A friend tells you to just pledge it at the post office. That is the wrong advice in two separate ways, and one of them could cost you the certificate.

**In short:**

- **NSC and KVP can be pledged.** Both live schemes have an express rule permitting it. **SSY cannot.** The Sukanya Samriddhi Account Scheme, 2019 contains no pledging provision, and the rule that would otherwise supply one is switched off unless the scheme allows it.
- **No post office lends against them.** The post office records the pledge. The bank lends the money. The post office is not on the list of bodies a certificate can be pledged to.
- **There is no notified LTV and no notified loan rate.** Each bank sets both. SBI publishes 60% of face value plus accrued interest, with a 40% margin — meaning you borrow 60% and keep 40%, which is the opposite of how it reads.
- **The maths that matters is not how old your certificate is. It is what rate it was bought at.** Pledge early or late changes almost nothing. An old certificate earns you less, but no certificate anyone can actually hold loses money on this deal.

*Deposit rates quoted are as notified for Q3 FY 2026-27 (1 October – 31 December 2026): NSC 7.7%, KVP 7.5%, SSY 8.2%. Next revision 31 December 2026. Bank lending rates below are dated to the card they came from. Check both before you act.*

## Three schemes, three different answers

The most common mistake here is treating PPF as the template and assuming every small savings scheme behaves like it. PPF is unusual because the scheme itself lends to you, at 1% a year, under its own rules. Of the three schemes on this page, none of the others works that way. We cover PPF separately — see [Loan against PPF and PMVVY](https://thewealthblog.in/loan-against-ppf-pmvvy/) for the 25% rule, the 36-month window and the 6% penalty rate. This page is about the three schemes with no coverage anywhere else.

| Scheme | Can it be pledged? | Where the rule is |
|---|---|---|
| NSC (VIII Issue) | Yes | Paragraph 6, National Savings Certificates (VIII Issue) Scheme, 2019 |
| KVP | Yes | Paragraph 7, Kisan Vikas Patra Scheme, 2019 |
| SSY | No | No pledging paragraph exists; the General Rules gate stays shut |

If you have an NSC bought before 12 December 2019, the older 1989 Rules governed it. They were rescinded on 12 December 2019, but anything done under them continues to have effect. Most readers holding an NSC today bought after that date and fall under the 2019 scheme. Either way the pledgee list is the same five bodies.

## SSY cannot be pledged, and here is why that is a real finding

This one deserves more than "the rules don't mention it," because a general rule *does* mention pledging, and a careless reader could stop there and get the wrong answer.

Rule 16 of the Government Savings Promotion General Rules, 2018 provides that "where the provision of the Savings Scheme so permit, an Account may be pledged or transferred as security." There is also a Form 7 in the schedule for applying to pledge, and a ₹100 fee listed for pledging in Schedule-II.

That form and fee are not an accident of drafting. They are there because NSC, KVP and the other schemes in the family *do* permit pledging. The opening words of rule 16 — "where the provision of the Savings Scheme so permit" — are the switch. The rule supplies the machinery. The scheme has to turn it on.

The Sukanya Samriddhi Account Scheme, 2019 does not turn it on. We read the live instrument (G.S.R. 914(E) of 12 December 2019, as amended by G.S.R. 288(E) of 5 May 2020) and searched it for "pledge", "security", "charge", "hypothecate" and "encumber". The scheme runs to eleven paragraphs covering definitions, opening, deposits, interest, operation, premature closure, withdrawal for education, closure on maturity, application of the General Rules, and power to relax. Pledging is not among them, and those terms do not appear. Its paragraph 10 imports the General Rules only "so far as may be" — for matters the scheme has not provided for — and the General Rules decline to operate where the scheme has not permitted.

So the answer is no, and it is no for a specific reason rather than an omission you have to notice yourself. If you have read somewhere that you can borrow against a Sukanya Samriddhi account, that source made it up. You will see the claim repeated widely.

If you have an [SSY account](/sukanya-samriddhi-yojana-for-parents-rules/) and a cash need, the money is genuinely not there for you. Plan for it in the year you need it, not on the day.

## Who can actually take the pledge

Paragraph 6 of the NSC Scheme, 2019 and paragraph 7 of the KVP Scheme, 2019 list the same five categories of pledgee: the President of India or a Governor of a State in official capacity; the Reserve Bank of India, a Scheduled Bank or a Cooperative Society including a cooperative bank; a public or private corporation or a Government company; a local authority; and a housing finance company approved by the National Housing Bank and notified by the Central Government.

Two things follow.

**The post office is not on it.** The post office is not the lender. It is the accounts office, and it does the paperwork — the endorsement on the record reads "Transferred as security to…" and from that point the pledgee "shall, until it is transferred back, be deemed to be the depositor." When you walk into a branch to borrow against your NSC, you are applying to a bank. If counter staff at a post office offer you a loan, ask which bank is on the other end of it.

Note what that deemed-depositor wording does to your paperwork. The bank is the depositor on the record of the account, so the certificate is held by the pledgee rather than by you for as long as the pledge stands. Your borrowing arrangement sits on top of that, with the bank as your creditor — which is a different position from a personal loan where you keep your own security. If a dispute ever arose about who holds the account, this is the clause that decides it.

**Minor and unsound-of-mind accounts need a certificate, not just a signature.** Both paragraphs carry the same proviso: an account opened for a minor or a person of unsound mind cannot be transferred as security unless the guardian certifies in writing that the person is alive and that the transfer is for their benefit. If you are pledging a child's account, write that letter before you go.

Both schemes also let a blind person or someone with physical infirmity pledge through a literate person they authorise. Worth knowing if you are doing this for a parent.

## What you can borrow

No government notification fixes a loan-to-value ratio or an interest rate for a loan against an NSC or KVP. Both are bank credit decisions. Published terms from two large banks, each dated to the card it came from. Both cards were re-checked while writing this and neither had moved.

**State Bank of India** (loan against NSC/KVP):

- **Effective interest rate 11.20%** — published by SBI as "1-year MCLR 8.70%, spread over 1-year MCLR 2.50%", rate card **w.e.f. 15 August 2025**
- Loan up to **60% of face value together with accrued interest**, no ceiling on the maximum amount as long as the margin is maintained
- Margin: **40%** of face value plus accrued interest
- Processing: **0.35%** of the loan amount, minimum ₹500, maximum ₹2,500, plus GST
- Demand loan or overdraft, branches only, no prepayment charges
- Repayment aligned to the certificate's maturity, and at no point may the outstanding exceed the maturity value of the certificate pledged

That 11.20% is SBI's own published figure, not one we calculated — worth saying, because two different pages on SBI's site describe this product at two different ages. The **interest-rate page** for loans against securities carries the rate card above with an August 2025 date. The **product page** is dated 13 September 2024 and still quotes 11.45%. If you are checking a bank's terms, the rate page is the page. The product page describes the deal; the rate page prices it.

**Bank of Baroda** (Baroda Advance Against Securities; retail rate card w.e.f. 6 December 2025):

- Loan against NSC, demand loan or term loan: **1.00% over the NSC rate**, or BRLLR + Strategic Premium + 1.50%, **whichever is higher**
- Overdraft: 0.25% above that, i.e. 1.25% over the NSC rate
- Loan against KVP: the same structure against the KVP rate
- Bank staff: 0.50% over the NSC or KVP rate
- No documentation charges for a loan against NSC, KVP or Government securities

One line needs unpacking, because it is the failure mode of every comparison page in this niche. Bank of Baroda's "1.00% over the NSC rate" reads as 8.7% when the NSC pays 7.7%. But the other side of the formula is live too. With BRLLR at 7.90% and a Strategic Premium of 0.25%, that leg prices the loan at **9.65%**. The bank charges the higher of the two, so 9.65% is what you pay. "Deposit rate plus 1%" is the floor on this pricing, not the rate — and in this quarter it is not the rate.

A note on why the two banks differ so much. SBI prices off the money market and carries the risk that rates move. Bank of Baroda prices at least partly off your deposit rate, which does not move for the life of your certificate. That is a real difference in whose risk you are carrying, and it is the more useful thing to compare than two headline percentages.

And a caution about reading any rate card as current. Bank of Baroda's card is dated 6 December 2025, but the bank's own 1-year MCLR has moved since it was printed — to 8.75% with effect from 12 September 2026. The NSC and KVP products are priced off BRLLR, so 9.65% still holds and the card is safe to use. But it is worth knowing that the number on a rate card and the number on a benchmark can drift apart, and that a card's own date is the only thing telling you which one you are looking at. SBI's page is the mirror image of that problem: still dated 13 September 2024, still quoting 11.45%.

## The interest maths, done properly

Start by discarding the comparison most people make. Comparing a loan rate against your deposit rate tells you nothing, because the deposit keeps earning while it is pledged. The number that matters is the gap between what the deposit earns and what the loan costs, on the same money.

Take the case. Ramesh holds an NSC with ₹1,00,000 face value bought at the current 7.7%. After one year the account is worth ₹1,07,700. He pledges it at Bank of Baroda and borrows 60% of that, ₹64,620, at 9.65%.

- Deposit interest in the following year: **₹8,293**
- Loan interest on ₹64,620 at 9.65%: **₹6,236**
- **Carry: +₹2,057 in his favour**

Same Ramesh at SBI. He borrows the same ₹64,620 at SBI's published 11.20%, which costs ₹7,237 a year:

- Deposit interest: **₹8,293**
- Loan interest: **₹7,237**
- **Carry: +₹1,055 in his favour**

And this is where the intuitive answer is wrong. The instinct says the deal gets worse as the certificate ages, because the loan amount grows. It does not. The loan is fixed at the moment you borrow — it does not grow with the certificate. Meanwhile the deposit's interest keeps compounding, because the 2019 scheme reinvests each year's accrual into the account. So the gap widens in your favour every year.

Ramesh's year-by-year carry at Bank of Baroda, having pledged at the end of year 1:

| Year | Deposit interest | Loan interest | Carry |
|---|---|---|---|
| 2 | ₹8,293 | ₹6,236 | **+₹2,057** |
| 3 | ₹8,931 | ₹6,236 | **+₹2,696** |
| 4 | ₹9,619 | ₹6,236 | **+₹3,383** |
| 5 | ₹10,360 | ₹6,236 | **+₹4,124** |

Pledge in year 4 instead and the year-5 carry at Baroda is ₹2,570 — lower, but only because he is borrowing more against a bigger base. He is still ahead. The breakeven loan rate is 12.83%, and it is 12.83% whether he pledges in year 1 or year 4. Age of the certificate is not the variable.

**The rate the certificate was bought at is the variable.** This is the part that catches people, and it is the reason to read this section. The interest rate on your account is the rate notified when you bought it, and it does not reset with the quarterly revisions.

The good news is better than you might expect. **No small savings certificate anyone can actually hold today loses money on this product.** A 4.9% rate was never notified for either scheme, and the floor that does exist is lower than most people assume. NSC ran at **6.8% for eleven consecutive quarters**, from April 2020 through December 2022, then 7.0% for the March 2023 quarter, and 7.7% since April 2023. An NSC bought in 2021 or 2022 is still running at 6.8% today. KVP's floor is 6.9%, from April 2020 to September 2022.

So here are the real vintages, each pledged a year in, at 60% of its own value:

| Certificate | Bought | Value after 1 yr | **Loan (60%)** | Deposit interest | BoB @9.65% | SBI @11.20% | Breakeven |
|---|---|---|---|---|---|---|---|
| KVP | 7.5% (current) | ₹1,07,500 | **₹64,500** | ₹8,062 | **+₹1,838** | +₹838 | 12.50% |
| KVP | 7.2% | ₹1,07,200 | **₹64,320** | ₹7,718 | **+₹1,512** | +₹515 | 12.00% |
| KVP | 7.0% | ₹1,07,000 | **₹64,200** | ₹7,490 | **+₹1,295** | +₹300 | 11.67% |
| KVP | 6.9% | ₹1,06,900 | **₹64,140** | ₹7,376 | **+₹1,187** | +₹192 | 11.50% |
| **NSC** | **6.8% (oldest still alive)** | **₹1,06,800** | **₹64,080** | ₹7,262 | **+₹1,079** | **+₹85** | **11.33%** |

One caveat on the timing, because it is not the same for both schemes. An NSC credits interest to the account each year, so its deposit-interest figure is money you can see. **A KVP pays nothing until maturity** — the figure above is the accrual, which is the right basis for comparing rates but not for cash in hand. Anyone drawing regular income from a deposit needs to know that difference.

Read the top row and the bottom row together, because the bottom row is the one that tests the claim. A current 7.5% KVP gains **₹1,838 a year** at Bank of Baroda. The oldest certificate a reader can hold — a **6.8% NSC** — gains **₹1,079**. At SBI the same comparison is **+₹838 against +₹85**, and that last figure is the one worth sitting with: thirteen basis points of headroom, ₹85 a year on a ₹64,080 loan.

Which means the ₹100 fee for pledging an account, charged under the General Rules, **exceeds the entire annual gain.** For a 6.8% NSC borrower at SBI this product does not work. Not because it loses money — it does not, it is still positive — but because a fixed cost is larger than what the deal earns. At Bank of Baroda the same certificate still returns ₹1,079, which is the difference between a bank that prices off the money market and one that prices partly off your deposit rate.

So the honest version of the warning is not that old certificates lose money. They do not, and anyone telling you otherwise is quoting a rate that was never notified. It is that **the oldest certificate is the one closest to the bank's rate**, and "still positive" can mean ₹85. Find out your rate before you borrow, and if it is at the floor, borrow from the bank that charges the lower number.

**What the breakeven rate actually is.** Strip the compounding out and the comparison collapses to one line. Divide the deposit's rate by the loan-to-value ratio and you get the loan rate at which you break even: 7.7% ÷ 60% = **12.83%** for a current NSC. At the floor of 6.8% it is **11.33%** — still above SBI's 11.20%, by thirteen basis points. That margin is the whole story of the table above.

That is why the ₹85 row is the most useful line on the page rather than the tightest one. The bank lends against what the certificate is worth today, and the certificate earns on what it is worth today — **both sides of this comparison are struck on the same number**, which is what lets the certificate's own value drop out and leaves you dividing a rate by a ratio.

That figure does not move with the pledge date. Pledge in year 1 or year 4, it is 12.83% either way — verified at both. The certificate's age is not the variable. What it was bought at is.

One footnote on how the loan is sized. Both published cards lend against the certificate's **current** value — face value plus accrued interest to date — not against what it will be worth at maturity. For a ₹1,00,000 NSC pledged at the end of year 1 that is a ₹64,620 loan; striking the same 60% against the ₹1,44,903 maturity value would give ₹86,942 instead, ₹22,322 more. No bank publishes that, and if one offered it, understand what you would be paying for.

And a caution for anyone checking our working. Paragraph 5(3) of the NSC Scheme is where the compounding rule lives, and it is stable. But the rupee amounts printed beside it are not: **paragraph 5(2A) still states that ₹1,000 matures at ₹1,389.49, and the accruals in Table-2 still read 68.00, 72.62, 77.56, 82.84, 88.47.** Those are 6.8% compounding, to the paisa, and they have not been updated since G.S.R. 284(E) of 5 May 2020. In practice the notified rate governs, so a 7.7% certificate really does mature at ₹1,449.03 per ₹1,000 — but if you follow the citation you will land on a figure ₹5,954 lower per lakh than the one we print, with nothing in the paragraph to tell you it is stale. Which is this page's own point, so we would rather tell you than let you find it.

Two charges the model does not capture. SBI's 40% margin means ₹43,080 of his money is tied up earning nothing beyond the deposit interest already counted — not a cash cost, but it removes flexibility. And the processing fee of 0.35% up to a ₹2,500 ceiling plus GST is proportionally brutal on a small loan.

## The trap: what happens when you cannot pay

Here the rules do something most readers do not expect, and it works in your favour.

An NSC account cannot be closed before maturity except in three cases. Paragraph 7(1) of the NSC Scheme, 2019 lists them: on the death of the account holder; on forfeiture by a pledgee **being a Gazetted Officer**, when the pledge is in conformity with the Scheme; or when ordered by a court. Paragraph 6(1)(b) of the KVP Scheme, 2019 is the same, with the same Gazetted Officer limit.

Read that second limb again. A commercial bank is not a Gazetted Officer. So a bank, as pledgee, cannot simply encash your NSC at post office rates because you missed an instalment and call the debt settled. Recovery is a matter for the courts. The certificate survives unless a court orders otherwise.

Contrast that with a bank fixed deposit, where the bank is both depositary and pledgee and simply deducts what is owed. If you are choosing between pledging a bank FD and pledging a small savings certificate, this is a genuine reason to prefer the certificate. If you are choosing between borrowing at 9.65% secured on your NSC and borrowing unsecured at a higher rate, the security is worth real money — the pledge is not free, but the bank's recourse against your certificate is narrower than a bank's recourse against its own deposit.

The fee and the paperwork, while we are here: pledging an account costs **₹100** under Schedule-II of the General Rules, 2018, plus applicable tax. You apply on Form 7, or on the scheme's own Form 3 for NSC and Form 4 for KVP, with an acceptance letter from the pledgee.

## What it costs you at tax time

The two schemes are taxed differently here, and the difference is worth more than most of this page.

**NSC interest is exempt from tax entirely** under section 11(1), Schedule II, Sl. No. 11 of the Income-tax Act, 2025, which covers interest on savings certificates and deposits notified by the Central Government. No tax is deducted at source on it and there is nothing to claim on it.

**KVP interest is fully taxable** and gets no deduction on the deposit. KVP sits outside the notified set that the Sl. No. 11 exemption covers, and it is not one of the qualifying subscriptions in Schedule XV. The whole of your return, including the interest component, is taxable as income from other sources at your slab. This is a common and costly misunderstanding, because the KVP is sold alongside the NSC and behaves differently on the tax form.

Separately, the **NSC** deposit itself is claimable as a deduction. Under the Income-tax Act, 2025 the deduction formerly at section 80C is now **Section 123**, read with Schedule XV, and the limit is unchanged at ₹1,50,000 aggregate. Schedule XV paragraph 1(i) covers a subscription to a savings certificate under section 3(k) of the Government Savings Banks Act, 1873, which is the NSC. Pledging does not break the deduction. Your deposit is still your deposit. A KVP holder, by contrast, has no Section 123 claim to make at all.

Do not merge those facts. A deduction for the deposit and exempt interest on it are separate. Claiming one does not make the other follow.

The interest on your loan is a third thing, and it is where readers get it wrong. Loan interest is not claimable under Section 123, and Section 153 is not the place either — that is the capped relief on taxable deposit interest, such as an MIS or SCSS payout. Loan interest follows the house-property rules where it is deductible at all, which is a different claim with a different ceiling. Check this with your chartered accountant rather than a branch counter.

## What to do today

1. **Find out what rate your certificate earns.** Not the current notified rate — the rate your certificate is locked into. Divide it by the loan-to-value ratio and you have your breakeven loan rate; if the bank is under it, the deal works.
2. **Check the certificate type before anything else.** If it is a Sukanya Samriddhi account, stop. There is nothing to pledge.
3. **Call two banks before you call one.** Get the actual rate in writing, not the spread formula, and ask what the margin is on your certificate's remaining maturity.
4. **Ask what happens on default.** Not the rate — what the bank can actually do to your certificate. The Gazetted Officer limit is a real protection and most borrowers have never heard of it.

## Key takeaways

- NSC and KVP can be pledged — paragraph 6 of the NSC Scheme, 2019, paragraph 7 of the KVP Scheme, 2019. SSY cannot, because the General Rules that supply pledging machinery apply only "where the provision of the Savings Scheme so permit," and the SSY scheme does not permit.
- The post office registers the pledge. A bank lends the money. No post office lends against these schemes.
- No notified LTV or loan rate exists. SBI: 60% of face value plus accrued interest, 40% margin, published effective rate 11.20%. Bank of Baroda: 1.00% over the deposit rate or BRLLR + SP + 1.50%, whichever is higher = 9.65%.
- Carrying a loan against a small savings certificate is profitable, and it gets *more* profitable as the certificate ages, because the loan is fixed at disbursal while the deposit compounds. Breakeven is simply your certificate's rate ÷ the loan-to-value ratio — 12.83% at 60% LTV on a current 7.7% certificate — and that number does not move with the pledge date.
- The thing to know about an old certificate is that it is thinner, not poisonous. A current 7.5% KVP gains ₹1,838 a year at Baroda; the oldest certificate a reader can hold, a 6.8% NSC, gains ₹1,079. At SBI it is ₹838 against **₹85** — thirteen basis points of headroom, where the ₹100 pledging fee exceeds the annual gain. No real certificate loses money here, but the floor vintage is not worth borrowing against at SBI.

## Questions people ask

### Can I get a loan against a Sukanya Samriddhi account?

No. The Sukanya Samriddhi Account Scheme, 2019 (G.S.R. 914(E), as amended by G.S.R. 288(E)) contains no pledging paragraph. Rule 16 of the Government Savings Promotion General Rules, 2018 does provide for pledging, but only "where the provision of the Savings Scheme so permit," and this scheme does not permit it.

### Can I get a loan against an NSC or a KVP?

Yes. Paragraph 6 of the NSC Scheme, 2019 and paragraph 7 of the KVP Scheme, 2019 permit the account to be pledged or transferred as security to a Scheduled Bank, the RBI, a cooperative society, a corporation or Government company, a local authority, or an NHB-approved housing finance company. The lender applies its own margin and rate.

### What does "40% margin" actually mean?

It means you borrow 60%. Margin is the bank's cushion, not your share. If SBI's card says a 40% margin and a 60% loan-to-value, those are the same fact stated twice, and "you get 40%" is the wrong reading of the word "margin."

### Does the post office lend against my NSC or KVP?

No. The permitted pledgee list in both schemes does not include the accounts office. The post office records the pledge — the endorsement reads "Transferred as security to…" — and the bank holds the certificate. India Post Payments Bank is a separate commercial bank and is not the post office acting as accounts office.

### What interest rate will I pay?

Bank by bank, and check the rate page rather than the product page. SBI publishes an effective rate of 11.20% outright — 1-year MCLR 8.70% plus a 2.50% spread, card dated 15 August 2025 — while its separate product page still quotes 11.45% from 2024. Bank of Baroda publishes no product rate, only a formula: 1.00% over the NSC or KVP rate, or BRLLR + SP + 1.50%, whichever is higher, currently 9.65%. The "deposit rate plus 1%" reading gives 8.7% and is not what you pay.

### Is it better to pledge early or late in the certificate's life?

It barely matters, and this is worth believing because your instinct says the opposite. The breakeven loan rate is your certificate's rate divided by the loan-to-value ratio — 12.83% at 60% LTV on a current 7.7% certificate — and that number is identical whether you pledge in year 1 or year 4. Carry improves each year you hold it, because the loan is fixed at disbursal while the deposit's interest compounds. What does matter is the rate your certificate was bought at: the same 60% LTV breaks even at 12.50% on a current 7.5% KVP but only 11.33% on a 6.8% NSC, which is thirteen basis points above SBI's 11.20%. An older certificate has almost no headroom before the bank's rate catches up with it.

### Is the loan based on what my certificate is worth now, or what it will be worth at maturity?

Now — current value, meaning face value plus interest accrued to date. That is how both published bank cards are written. The gap is not trivial: on a ₹1,00,000 NSC pledged one year in, 60% of the current value is ₹64,620, while 60% of the ₹1,44,903 maturity value would be ₹86,942. A bank that lends against maturity value is lending you money you have not earned yet, and you would be paying interest on it from day one.

### Can the bank encash my certificate if I default?

Not on its own, under these scheme rules. Premature closure on forfeiture is permitted only where the pledgee is a Gazetted Officer. A commercial bank would have to enforce through a court. This is a real difference from a bank fixed deposit, where the bank deducts its dues directly.

### Can I pledge a certificate held for my minor?

Only with written certification from the guardian that the person is alive and that the transfer is for their benefit. The proviso is in paragraph 6(2) of the NSC Scheme and paragraph 7(2) of the KVP Scheme.

### Is the deduction affected by pledging?

For an NSC, and the numbering changed. Under the Income-tax Act, 2025, in force from 1 April 2026, the deduction formerly at section 80C is now **Section 123**, read with Schedule XV, with the limit unchanged at ₹1,50,000 aggregate. Pledging does not affect it. Separately, NSC interest is exempt under section 11(1), Schedule II, Sl. No. 11 — that is a separate fact, not something you get by claiming Section 123.

### Is KVP interest taxed the same way as NSC interest?

No, and this catches people. NSC interest is exempt under section 11(1), Schedule II, Sl. No. 11. **KVP interest is fully taxable** as income from other sources at your slab, because KVP sits outside the notified set that exemption covers — and the KVP deposit itself gets no Section 123 deduction either. A KVP holder has neither the exemption nor the deduction. The two schemes are sold at the same counter and behave differently on your tax form, so check which one you actually hold.

## The wider picture

How these three schemes work outside a pledge: [NSC complete guide](/nsc-national-savings-certificate-complete-guide/), [Kisan Vikas Patra explained](/kisan-vikas-patra-doubling-period-explained/), [NSC vs KVP for families](/nsc-vs-kvp-which-post-office-scheme-should-you-pick/). What it costs to leave each one early: [premature closure penalties](/ppf-nsc-kvp-mis-ssy-premature-closure-penalties/). How the interest is taxed: [post office interest and TDS](/post-office-interest-tds-form-121-ppf-exemption/). And the scheme one at a time: [loan against PPF or PMVVY](/loan-against-ppf-pmvvy/), which is the only one of this family where the scheme itself lends to you.

*This is general information on scheme rules and published bank terms, not legal or tax advice. Small savings rates are set quarterly and bank lending rates change with the benchmark. Verify the current rate at the branch before you borrow, and speak to a qualified adviser about anything touching a specific loan.*

**Related reading on this site.** [all seven small savings schemes](https://thewealthblog.in/small-savings-schemes-india-ppf-nsc-kvp-mis-ssy-scss/); [premature closure costs](https://thewealthblog.in/ppf-nsc-kvp-mis-ssy-premature-closure-penalties/); [a pledged account after death](https://thewealthblog.in/post-office-account-after-death-nomination-legal-heir/); [nomination versus a will](https://thewealthblog.in/nomination-vs-will-joint-accounts-legal-heirs/); [SCSS against a bank FD](https://thewealthblog.in/scss-vs-bank-fd-senior-citizens/).