New Delhi, Aug. 28 -- Are you facing a cash crunch? Your National Savings Certificate (NSC), a prominent government-backed savings scheme, can double as instant loan collateral. While it offers investors fixed, predictable returns and a 5-year tenure, in exceptional cases of cash crunch, if you need funds before the maturity date, you may be able to pledge your NSC as security for a loan. This primarily depends on the lending institution's eligibility criteria, requirements and associated policies.

For the July-September 2026 quarter, the NSC offers investors a 7.7% interest rate. Furthermore, interest in this case is compounded annually and paid to investors with the principal at maturity.

To put it simply, the NSC is first pleaded as ...