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.
To be eligible for a loan against SBI fixed deposit, the criteria are as follows:
The key features of loan against time deposits are as follows:
|Type of loan available||Both demand and overdraft loans|
|Channels available||Internet Banking as well as through branches|
|Security||Granted on underlying fixed deposit|
|Margin||Up to 90% of the value of the fixed deposit|
|Repayment period||The period is fixed based on the repayment capacity of the borrower.|
|Interest rate||1% above the relative fixed deposit rate|
Other Banks Offering Loan Against FD
A repayment schedule will be fixed by the bank for you based on your repayment capacity for the loan that you have taken via the SBI Bank branches.
The maximum repayment period is 5 years against STDR/e-STDR. The period has been fixed at 3 years against TDR/e-TDR for Overdraft availed online.
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.
Yes, the demand loan facility is available for the potential borrower.
No, as of now you can avail only 75% of your TDR/e-TDR as overdraft.
Yes, they are eligible and can avail loans as long as their fixed deposit accounts are operational.
No, the facility is not available with regards to Tax Saving fixed deposits and Recurring deposits.
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.
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.
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.
No, it is not the same as interest rates vary from one another depending on the fixed deposit schemes.
One can repay the borrowed amount through internet banking or by visiting a SBI branch.
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