State Bank of India (SBI), inarguably the largest public sector bank in the country, provides all kinds of loans, including loans against Fixed Deposits (FDs), to its customers. In today’s world, everyone is in need of loans for different purposes like education, home, vehicles etc. In that regard, SBI offers loans to its customers based on their fixed deposits without them having to break it. This initiative is quite beneficial for the ones who are looking to avail a loan as the rate of interest is quite low when compared to other kinds of loans that exist in the financial sector.
Eligibility Criteria for Availing Loan Against SBI Fixed Deposit
To be eligible for a loan against SBI fixed deposit, the criteria are as follows:
The applicant needs to be above 21 years of age and must have a FD account with the bank.
The FD against which the loan is to be availed must not have matured when applying for the loan.
Customers holding TDR/STDR/e-TDR/e-STDR with SBI individually can avail the facility.
The ones who are registered with the bank in terms of depositing in RD/ e-RD/NRE/RFC/FCNR (B) are also eligible.
Businesses can avail this facility only in the case of sole proprietorship or partnership firms.
Features of Loan Against SBI Fixed Deposit
The key features of loan against time deposits are as follows:
Type of loan available
Both demand and overdraft loans
Internet Banking as well as through branches
Granted on underlying fixed deposit
Up to 90% of the value of the fixed deposit
The period is fixed based on the repayment capacity of the borrower.
1% above the relative fixed deposit rate
Benefits of Loan Against SBI Fixed Deposit
Loan up to 90% of FD: Individuals can avail loans up to 90% of the value of the term deposit. So, higher the amount of the deposit in the target="_blank"SBI fixed deposit, the better are the chances of securing a substantial amount as loan as and when the need arises.
Demand and overdraft loans available: Both demand and overdraft loans are available and can be availed as per the needs of the individual. For online overdraft loans against SBI FD, the minimum amount is Rs.25,000 while the maximum amount that can availed is Rs.5 crore. The maximum amount can never exceed the 90 percent of the amount invested in SBI term deposit.
No processing fee or penalties: No processing charges are levied on the individuals who avail loans against SBI fixed deposits and neither is there any prepayment penalties. Considering these factors, loans drawn against SBI time deposits are quite popular among the ones who avail the facility. With no processing fee and no penalties imposed on the borrower if he/she repays the borrowed amount before the scheduled time, the facility offers the customer a lot of breathing space when compared to other loans that the bank offers to its customers.
Interest rate charged is mere 1%: The interest rate on the loan amount against the FD is just a mere 1% above the relative time deposit rate. The interest rates are lower in comparison to other types of loans provided by the bank is because of the fact that the borrower already has a relation with the bank as well as for the reason that the loan falls under the secured category.
Repayment period is fixed based on the individual’s repayment capacity: Another benefit that the bank offers to the individuals who avail this facility is that the repayment period is fixed based on the repayment capacity of the borrower. The maximum repayment time for SDTR/e-STDR is 5 years while for TDR/e-TDR, it is kept at 3 years for overdraft loans while it is done online. In case the loan is availed at the branch, the bank officials determine the repayment period based on the borrower’s capability to repay the borrowed amount.
Interest is provided on the FD: Security interest is provided on target="_blank"fixed deposits. This is another benefit as it helps the borrower earns interest on the existing fixed deposit. It helps the individual in the long run by enabling him/her in repaying the borrowed amount against the existing fixed deposit.
Points to keep in mind if one intends to take loan against Fixed Deposits
Loans are provided only against fixed deposits that are free of mortgage or impediment.
Loans can’t be availed from term deposits opened in the name of minors.
In case the personal loan was availed from an FD that was opened jointly, all holders of the term deposit will have to bear the responsibility of repaying the borrowed amount.
The borrower can’t close or break the time deposit account after availing the loan.
Banks reserves the right to close the FD account against which the loan was borrowed if the borrower fails to repay the amount he/she borrowed.
Loan Against SBI Fixed Deposit FAQs
How is the loan against SBI Fixed Deposit provided?
The loan is provided to the borrower in the form of an overdraft based on the amount deposited by the borrower in the fixed deposit.
Is demand loan facility also available?
Yes, the demand loan facility is available for the potential borrower.
Can I avail 90% of my TDR/e-TDR as overdraft through the internet banking platform?
No, as of now you can avail only 75% of your TDR/e-TDR as overdraft.
Are NRIs eligible for loans against fixed deposits?
Yes, they are eligible and can avail loans as long as their fixed deposit accounts are operational.
Is the online overdraft facility available against Tax Saving and Recurring deposits?
No, the facility is not available with regards to Tax Saving fixed deposits and Recurring deposits.
How to avail the facility online?
The facility can be availed by visiting onlinesbi.com and logging into internet banking by using the username and password. The details are available under the e-Fixed Deposit tab.
Can joint holders of a fixed deposit apply online?
No, joint holders of a fixed deposit account can’t apply online. If they intend to apply for the loan, they need to do so by visiting a SBI branch.
Is there a limit on the maximum amount when the facility is availed through SBI branch?
No, there isn’t any limit on the maximum loan amount that can be availed by the borrower when he/she applies through the bank.
Is the interest rate the same for all the applicants who wish to avail the facility?
No, it is not the same as interest rates vary from one another depending on the fixed deposit schemes.
How can I repay the loan?
One can repay the borrowed amount through internet banking or by visiting a SBI branch.
SBI Interest Rates Revision Effective from 1 August
India’s largest lender and state-owned State Bank of India has cut deposit rates on various tenors stating surplus liquidity and declining interest rate scenario. Interest rates have been slashed by 5075 bps (basis points) for term deposits with shorter tenure of up to 179 days. For term deposits with longer tenures, the reduction is up to 20 bps in retail segment and 35 bps in bulk segment. The bank has also slashed deposit rates on bulk deposits of Rs.2 crore and above. The new rates are effective from 1 August 2019. Additionally, the public sector bank will not impose IMPS charges from 1 August 2019. The IMPS charges of SBI will be zero for users who transfer funds through its Yono app, mobile or internet banking. For bank branches, the bank has announced a waiver of IMPS charges for transactions up to Rs.1,000
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I had a Fixed Deposit in State Bank of India, I have completed the tenure before 3months ago. I have no issues with the customer service. They are given me 7% interest rate for 2years. There is no profit and processing fee. I got an online access, where I can check the interest rate anytime on the YONO app or else SBI online.
I have invested some money through FD. My salary account is in SBI so i have a zero ATM charges and the limit is not actually set by SBI. They do have short term FDs which is pretty good. I have invested the money of Rs. 60000 and the interest rate is 10.01% for the tenure period of 16 months. There is no lockin period. There is no hassle to getting the money back.
I had fixed deposit with SBI then I withdrawn the amount, I done Rs. 3 lakhs of investment on my daughter name then I taken the liquidity to purchase the land, at the time I struggled a lot to take that money because the process was difficult to withdrawn the money after seven months of tenure.
I do have a Fixed deposit account with SBI and it was carried out by Mom and even I have account for my daughter. Its still running and they have Google application separately to access online. The returns are good. I am doing monthly investment and it was opened quite a long may be 4 years.
I have FD with SBI, I have opt for one year term there is no such limitation for depositing the money. The interest rate is good for the FD, the online banking is convenient to take liquidity. They resolve the queries on time. Its most safe and secured.
I have selected state bnak of indis fixed deposit amount 1 lakhs , Tenure 5 years and Rate of interest 8 percentage after renewal fixed deposit 6 percentage is very less .while document directly bank . Customer service is not good and responsive.
Chosen my fixed deposit from State bank of India. I have invested the money of Rs. 57000 and SBI is a most popular bank all over the India and offering all the facilities compared to bank. Since i have a salary account with them, its easy to transfer the money. They are providing the interest rate of 6.5%.
Chosen my fixed deposit from state bank of India because the given rate of interest is high. They are not deducting any service charges. I have invested the money of Rs. 1 lakhs and there is no lockin period and i have chosen the plan for 1 year and they are giving a interest rate of 6.75%.
I am not much satisfied with the fixed deposit with STATE BANK OF INDIA. I am using from last few years and there is a good online banking also the service from the customer support is good added on that the overall service with them was good.
All customer can deposit the SBI fixed deposit from min of Rs. 10,000 , I believe they give 7% of interest for per annum. I have option to activate or de activate the service through online without going to the bank , there is no documentation to be signed for the online procedure. There is no charges for pre matured of FD.
No reason for choosing my fixed deposit account with state bank of India. They are providing a interest rate of 6.75%. I have invested the amount of Rs. 50000. There is a lockin period of 2 years. I can deposit for a long time as well. There is processing fee for my FD account.
Being a middle class person definitely I think to invest my money that's the reason I chosen SBI fixed deposit because its safe and secured. I can deposit for long term, the online feature is great and I can open and close the FD account through netbanking.
I am having fixed deposit with State Bank Of India ,interest is good .The banking service is good so far .I have not faced any issues so far .Money will be safe on this account .Whenever need money can take and can deposit as well .The banking service is good and satisfied so far .Will get frequent update as well. I am satisfied with the overall service.
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RAM BHAJAN ROY
Reviewed on Apr 30, 2019
SBI gives only 6.7% of interest for the fixed deposit, there is some charges applicable for the per matured liquidity amount. They take 1% from the paid amount, its not flexible as HDFC. The customer dealing is also average to resolve the queries.
My fixed deposit is with State Bank of India. I can open and close this account online. The interest I earn is satisfactory. The customer services and response is good and in all it is a smooth process and there are no unwanted charges taken for the same.
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ANANTH NAGARAJ NEERAGUNDA
Reviewed on Apr 29, 2019
For SBI fixed deposit there is no locking period, as per the customer convenience they can chose 7 day to 10 years of term. There is pre matured charges they take it from the invest amount . SBI is trusted and reputed and upto Rs.10,000 deposit there is no tax deduction.
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Reviewed on Apr 24, 2019
Two months before I deposited my money nearly 1,50,000 in SBI . I am really happy with their customer service and response . But the interest rate is around 6.85 % which is lesser comparing to other bank . Since It is Government bank, I need not to worry in future if anything uncertain happens .
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ALBERT HARISAN WILLIAM
Reviewed on Apr 15, 2019
I also have a fixed deposit account with State Bank of India. The customer services are good. The process can be done online. The lock in period depends on the choice of the customer. The minimum tenure is six months. The interest rate provided is also equally good.
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MOHD ANISHAHMED KHAN
, new delhi
Reviewed on Apr 13, 2019
Five years before , I opened a Fixed deposit in SBI , It automatically renewed on every year. I just monitors in online . I am looking for more investment in the future. At one stage I open this fixed deposit for my children's education or marriage .
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KIRAN VEDANTAM PHANI
Reviewed on Apr 10, 2019
All we know, SBI is a government bank, that is the reason I have availed fixed deposit from them. As per the current financial year they are providing the interest around 6%, I opened the account through online, but for the closure I think I need to visit the bank.