Citibank Loan Against FD
Anyone with a fixed deposit in Citibank can avail a loan against their FD in times of need. This is helpful in times of a financial crisis or emergency. This can be done without breaking the deposit while also availing much-needed liquidity.
What is Loan Against FD
Loan against FD is similar to a personal loan that is secured. In this case, the loan is availed against a certain percentage of your FD amount, which in Citibank is up to 90% of the value of your fixed deposit.
Benefits of Citibank Loan Against FD
There are several benefits to availing a loan against your Citibank fixed deposit, such as
- Interest rates on loan against FD are lower than on personal loans
- Your deposit continues to earn interest with a small markup charged over it
- Interest is only charged on the usage of your loan
- Minimal documentation required
- The loan is disbursed quickly
Eligibility for Citibank's Loan Against FD
Anyone who has opened an FD account with Citibank can avail the loan against FD. The following entities are eligible:
- Indian residents who are 21 years and above
- Private limited companies
- Partnership firms
- Sole proprietorship firms
- Stock brokers
- Public limited companies that are closely held
How to Apply for Citibank Loan Against FD
The application process for Citibank's loan against FD is very simple by following the steps given below:
Step 1: Visit the bank's official website or mobile application
Step 2: Navigate to the ''Loans'' section
Step 3: Navigate to ''Loans against Fixed Deposits''
Step 4: Fill up the required details and a relationship manager will get in touch with you
Or
Step 5: Choose the application form for either non-individuals or individuals as the case may be
Step 5: Download the form
Step 6: Fill up the form with the required details
Step 7: Submit the duly signed form along with the required documents to the relationship manager
Other Banks Offering Loan Against FD
FAQs on Citibank Loan Against FD
- What is the minimum FD limit to avail a loan against it?
You can avail a loan against your FD if it is a minimum of Rs.1 lakh deposit.
- Can I take a loan if the deposit is held by a family member?
If the deposit is held by members belonging to the same household, then a loan can be availed against the FD.
- What are the interest rates for loan against FD?
Contact the bank or your relationship manager of the bank to know the interest rates for the loan against FD.
- What is the markup on the interest rate?
The markup on the interest rate is subject to 1% over the deposit rate.
- Is there a penal interest rate?
Yes, the penal interest rate is 2% above the applicable interest rate.
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