It is very beneficial to open a fixed deposit with Axis Bank. The bank’s term deposits come with assured investment returns with attractive interest rates, as compared to regular savings account. Now customers can also avail a loan against the fixed deposit account opened with Axis Bank. The loan amount can be used in time of financial emergency, without the need of liquidating the fixed deposit.
In order to apply for a loan against the fixed deposit offered by Axis Bank, the customer should fulfil the following eligibility criteria:
Listed below are the main feature of Axis Bank Loan against Fixed Deposit:
Minimum – Rs. 25,000
Maximum – No ceiling
|Rate of Interest||
2% for loan up to 1 crore
3% for loan above 1 crore
4% for third party customers irrespective of amount
|Period of Deposit||Minimum: 3 months|
|Facility for Nomination||Available|
There are a number of perks of availing a loan against your term deposit from Axis Bank. Here are some of the benefits:
Other Banks Offering Loan Against FD
The procedure to apply for a loan against the amount that is available in the FD account offered by Axis Bank is mentioned below:
The bank charges competitive rates of interest on its loan against fixed deposits. Here are the rate of interests that are charged on different amounts loaned:
There are no other charges applied on the overdraft account, apart from the rate of interest. The interest rates charged by the bank on loans against fixed deposits can be changed on the bank's discretion.
Yes, Axis Bank accepts loan requests from third party customers as well. Around 4% interest rate will be charged, no matter what the loan amount is.
There is no cap on the maximum amount to be availed as loan. However, the bank will not approve the loan in case it is lower than Rs. 25,000.
Yes. The banks allows premature withdrawal fixed deposits, provided the customer doesn’t have any overdrafts against the deposit.
No. The bank does not charge any penalty for early closure of the account.
In order to avail loan against fixed deposit from Axis Bank, the following documents are required:
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