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    Loan Against SBI Fixed Deposit

    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:

    1. Type of loan available Both demand and overdraft loans
    2. Channels available Internet Banking as well as through branches
    3. Security Granted on underlying fixed deposit
    4. Margin Up to 90% of the value of the fixed deposit
    5. Processing fee Nil
    6. Repayment period The period is fixed based on the repayment capacity of the borrower.
    7. Interest rate 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

    1. How is the loan against SBI Fixed Deposit provided?
    2. 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.

    3. Is demand loan facility also available?
    4. Yes, the demand loan facility is available for the potential borrower.

    5. Can I avail 90% of my TDR/e-TDR as overdraft through the internet banking platform?
    6. No, as of now you can avail only 75% of your TDR/e-TDR as overdraft.

    7. Are NRIs eligible for loans against fixed deposits?
    8. Yes, they are eligible and can avail loans as long as their fixed deposit accounts are operational.

    9. Is the online overdraft facility available against Tax Saving and Recurring deposits?
    10. No, the facility is not available with regards to Tax Saving fixed deposits and Recurring deposits.

    11. How to avail the facility online?
    12. 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.

    13. Can joint holders of a fixed deposit apply online?
    14. 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.

    15. Is there a limit on the maximum amount when the facility is availed through SBI branch?
    16. 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.

    17. Is the interest rate the same for all the applicants who wish to avail the facility?
    18. No, it is not the same as interest rates vary from one another depending on the fixed deposit schemes.

    19. How can I repay the loan?
    20. One can repay the borrowed amount through internet banking or by visiting a SBI branch.

    Loan against FD SBI Reviews

    • SBI Fixed Deposit
      "Good FD account"
      0.5 5.0/5 "Blown Away!"
      I have invested the fixed deposit with State bank of India. Since the branch is nearest by my home and they have given me a locker facility hence i have chosen the fixed deposit with SBI. Overall, I'm very much satisfied with the services with SBI.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jan 18, 2019
    • SBI Fixed Deposit
      "Best Investment plan"
      0.5 5.0/5 "Blown Away!"
      I have taken fixed deposit account in State Bank Of India . They are not charging any charges for the account . I used to get income tax benefits . Am satisfied with the customer service and response.They are giving good rate of interest . Overall am happy with my account .
      Was this review helpful? 5
      , ahmedabad
      Reviewed on Dec 29, 2018
    • SBI Fixed Deposit
      "Very Good Service"
      0.5 4.0/5 "Great!"
      I had made this investment pretty long time back and the services which they had provided so far has been good. The interest rate with them has been good and the growth with the investment has also been good. Their customer support has been helpful in guiding with everything.
      Was this review helpful? 9
      , bangalore
      Reviewed on Dec 14, 2018
    • SBI Fixed Deposit
      "Good Investment Plan"
      0.5 4.0/5 "Great!"
      I have taken fixed deposit account in STATE BANK OF INDIA . They are not charging any charges for the account . I used to get income tax benefits . Am satisfied with the customer service and response.They are giving good rate of interest . Overall am happy with my account .
      Was this review helpful? 4
      , mumbai
      Reviewed on Dec 12, 2018
    • SBI Fixed Deposit
      "Average service"
      0.5 3.0/5 "Satisfactory"
      I had a Fixed Deposit account with SBI and my experience was average, an amount of Rs 20000 is paid as a fixed amount. Customer service was not up to the mark with SBI. I am not aware of the returns in this Fixed deposit account.
      Was this review helpful? 6
      , kolkata
      Reviewed on Nov 20, 2018
    • SBI Fixed Deposit
      "Good returns"
      0.5 5.0/5 "Blown Away!"
      I had a Fixed Deposit account with SBI and my experience was good, an amount of Rs 1 lac is paid as a fixed amount. Customer service was very good and they explained all the terns and conditions. I am satisfied with the returns in this Fixed deposit account.
      Was this review helpful? 3
      , gurgaon
      Reviewed on Nov 20, 2018
    • SBI Fixed Deposit
      "Good Investment"
      0.5 5.0/5 "Blown Away!"
      I have fixed deposit in SBI, the interest rate is good around 8.9% for the period of one year. I can invest the min of Rs. 500 to 15 lakhs, I have not tried reaching them because everything is going well. I get message every time after making a payment on month basis.
      Was this review helpful? 8
      , hyderabad
      Reviewed on Nov 12, 2018
    • SBI Fixed Deposit
      "Average Investman plan"
      0.5 2.0/5 "Expected more"
      I have taken Fixed deposit account from the state bank of India . There is no additional charges for the account. It is short term investment plan for 5 years but am not satisfied with the rate of i9nytrest which they are giving . I used to get income tax benefits . Customer service and response is not that much good .
      Was this review helpful? 5
      , bangalore
      Reviewed on Nov 10, 2018
    • SBI Fixed Deposit
      "Satisfactory"
      0.5 5.0/5 "Blown Away!"
      I have a fixed deposit account with State Bank of India. The experience is fine and there are no hassles to open this account. The interest I earn on this account is also satisfactory. The customer support and response is good at the bank. It has been a smooth process.
      Was this review helpful? 0
      , bangalore
      Reviewed on Oct 27, 2018
    • SBI Fixed Deposit
      "Average service"
      0.5 3.0/5 "Satisfactory"
      I have a Fixed Deposit with SBI from last 3 years, i am satisfied with the returns of Fixed Deposit which is 8%-9%. The maturity period for Fixed Deposit is 5 years. Customer support was very good and they explained all the terms and conditions..
      Was this review helpful? 9
      , secunderabad
      Reviewed on Oct 19, 2018
    • SBI Fixed Deposit
      "Good in all"
      0.5 3.5/5 "Pretty good"
      I hold a fixed deposit account with State Bank of India. I had to visit the bank to open this account, it is a tedious process as it was not online. I had to fill in the application for the same. In all there has been a very good experience. Good overall.
      Was this review helpful? 2
      , bangalore
      Reviewed on Oct 18, 2018
    • SBI Fixed Deposit
      "Good service"
      0.5 4.5/5 "Excellent!"
      I have a Fixed Deposit account with SBI from last 4 years, the maturity period for this FD is 18 years. I invested an amount of Rs 5 lacs in Fixed Deposit account. Customer service was good with SBI and i get good returns of 8% after the maturity period.
      Was this review helpful? 13
      , hyderabad
      Reviewed on Oct 01, 2018
    • SBI Fixed Deposit
      "Good service"
      0.5 4.0/5 "Great!"
      I have opened a Fixed Deposit with SBI since 2011, i have renewed the FD 2 to 3 times. Customer service is very good with this bank and they explained everything about the returns. I deposit an amount of Rs 1 lac and i get 6.75% as interest on returns.
      Was this review helpful? 18
      , kolkata
      Reviewed on Aug 29, 2018
    • SBI Fixed Deposit
      "Good service"
      0.5 4.0/5 "Great!"
      I have taken fixed deposit account with state bank of India . I have chosen this bank . As they are offering good rate of interest which will good returns . Am satisfied with the premium amount which am paying . Am satisfied with customer service and response .
      Was this review helpful? 17
      , mumbai
      Reviewed on Jul 25, 2018
    • SBI Fixed Deposit
      "Needs to improve"
      0.5 2.0/5 "Expected more"
      I have a Fixed Deposit account with SBI from last 8 months, i am not happy with the services provided by SBI as their response is not proper and there was no complete information given. I paid an Fixed amount of Rs 1.5 lakhs and in return i get 6.5% as interest which is less when compared to others.
      Was this review helpful? 20
      , gurgaon
      Reviewed on Jul 20, 2018
    • SBI Fixed Deposit
      "Good Service"
      0.5 3.0/5 "Satisfactory"
      I've Fixed deposit with the SBI, I deposited 50000. It was so easy to start a fixed deposit with them. 2 years. For senior citizen they offers 7% interest rate which is very low. They also provided me with a credit card with the FD which was also good.
      Was this review helpful? 32
      , chennai
      Reviewed on Jun 11, 2018
    • SBI Fixed Deposit
      "Good Service"
      0.5 2.0/5 "Expected more"
      I've a fixed deposit with the SBI. I deposited 60000 . I also got a credit card as a part of this fixed deposit.I never had any issues with the deposit. The deposit was opened with out any questions asked, they also give an annual interest for this deposit.
      Was this review helpful? 11
      , mumbai
      Reviewed on May 25, 2018
    • SBI Fixed Deposit
      "Good Service"
      0.5 4.0/5 "Great!"
      I've a savings account with SBI. I started a Fixed Deposit with them. I started the FD for tax saving purposes. They do charge some normal annual interest rates of fixed deposit also I had never experienced any difficulty with their services.
      Was this review helpful? 9
      , chennai
      Reviewed on May 21, 2018
    • SBI Fixed Deposit
      "Average"
      0.5 3.0/5 "Satisfactory"
      State Bank Of India fixed deposit service is good. But I am not much comfortable with State Bank Of India process. State Bank Of Indiaonline portal is good, even the payments are through online. It was an average service from Sbi fixed deposit service.
      Was this review helpful? 9
      , pune
      Reviewed on Apr 25, 2018
    • SBI Fixed Deposit
      "Best Service"
      0.5 5.0/5 "Blown Away!"
      I have opened an Fixed Deposit account with SBI 3-4 years back, the services provided by this bank is good when compared to other banks. I invest 5000-6000 every month. I get 7.5% as an interest on returns. Customer support team guided me well and they gave all right information.
      Was this review helpful? 4
      , ahmedabad
      Reviewed on Apr 20, 2018
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