Federal Bank's loan against fixed deposit is a feature that facilitates easy access to funds by taking a loan against your fixed deposit that is held with the bank. This helps you to meet any financial emergency while ensuring that you only pay low-interest rates for the loan.
The features and benefits of this option are as given below:
You can take a loan against your own deposit or a loan against a third-party deposit. The interest rates are as given below:
|Type of Fixed Deposit||Interest Rate|
|Loan against own fixed deposit||Deposit Rate + 2.00|
|Loan against third-party fixed deposit||Deposit Rate + 2.00 or 12.50 (whichever is higher)|
A Federal Bank loan against FD has several benefits such as:
No, there is no processing fee for availing a Federal Bank loan against fixed deposit.
No, there is no penal interest for Federal Bank loan against fixed deposit.
No, you cannot take a loan against a fixed deposit if the account is held in the name of a minor.
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