Quote Originally Posted by Natraj View Post

Premature encashment is not possible in your case.
Premature encashment of the certificate is permissible at discount, only in case of death of the holder(s), surrendered as a penalty by a pledgee and when ordered by a court of law.
Just to add to this - It is possible after the expiry of three years from the date of purchase of certificate.

You can take a loan against the NSC by pledging it to the RBI or a scheduled bank or a co-operative society, a corporation or a government company, a housing finance company approved by the National Housing Bank etc with the permission of the concerned post master.