You can avail loan against your Fixed Deposit (FD) if your credit score is low, you do not meet the income eligibility criteria, or if you have no other assets to pledge for a secured loan. The interest rate on such loans range between 1% and 2% above the FD rate and can be repaid in up to 60 months. These loans are usually given in the form of an overdraft or demand loan.
|Name of the Bank||Interest Rate||Repayment Tenure||Loan Amount|
|Axis Bank||2% above term deposit rate||-||Rs.25,000 onwards|
|State Bank of India||1% above the relative time deposit rate||6 months to 5 years||Rs.25,000 to Rs.5 crore|
|HDFC Bank||2% above the FD rate||6 months onwards||Rs.25,000 onwards|
|Federal Bank||2% above the FD rate||-||Up to 90% of the deposit amount|
|Karur Vysya Bank||5% to 7%||-||Up to 90% of the deposit amount|
|Deutsche Bank||2% above the FD rate||7 days to 365 days||Rs.25,000 onwards|
|Penal Interest Rate||Cheque Book Issuance Charges||Cash Deposit Charges||Duplicate Account Statement|
|24% p.a., 2% per month plus GST||Rs.100 plus GST||Rs.3 per Rs.1,000 plus GST||Rs.100 per statement plus GST|
|Processing Fee||Prepayment Charges||Margin||Repayment Period|
|Nil||Nil||Up to 90% of the value of FD||3 years to 5 years|
|Loan Amount||Minimum Repayment Tenure||Interest Rate||Prepayment Charges|
|Up to 90% of overdraft on your FD||6 months||2% above the FD rate||-|
|Loan Margin||Penal Interest||Processing Fee||Prepayment Charges|
|Up to 90% of the FD amount||Nil||Nil||-|
|Loan Amount||Processing Fee||Prepayment||Penal Interest|
|Up to 90% of the deposit amount||-||-||-|
|Minimum Overdraft Amount||Repayment Tenure||Service Tax||Overdrawing of Facility Limit||Stamp Duty Charges|
|Rs.25,000||7 days to 365 days||As applicable||24% p.a. on the overdrawn amount||Depends on local regulations|
To be eligible for a loan against FD, the basic criteria is that you must hold a fixed deposit with the bank you are availing the loan from and any of below-given individuals/entities can avail the loan:
To avail a loan against fixed deposit, you will need to provide the below-given documents:
Please note that these may vary from lender to lender.
Most lenders allow you to avail a loan against fixed deposit online except in few cases where you will need to visit the nearest branch of the bank. Some of the banks that offer the facility of availing a loan against fixed deposit online through their respective websites are the State Bank of India, HDFC Bank, Axis Bank, and Deutsche Bank. In the case of Federal Bank, you will need to visit the nearest branch of the bank.
Answer: Yes, you can obtain a loan against your Foreign Currency Non-Resident Account (FCNR) deposit from banks such as HDFC Bank, ICICI Bank, etc. Loans can also be availed against your NRE and NRO deposits.2. What happens if I am unable to pay the EMIs towards my loan availed against my FD?
Answer: In instances where you fail to pay the EMIs, the bank will use the amount in your FD to adjust the payment against your loan availed.3. Can minors avail loan against fixed deposits?
Answer: No. To avail loan against a fixed deposit, you need to be at least 18 years of age and hold a valid fixed deposit.4. I have availed a loan against my FD. Is it possible to close my FD before my loan tenure ends?
Answer: You are not allowed to close your fixed deposit if there is an outstanding overdraft against it.5. I want to avail a demand loan against my FD from SBI. Can I do it online?
Answer: Unfortunately, no. At the moment, SBI allows online facility only for overdrafts. If you wish to avail a demand loan, you will have to visit the nearest branch of SBI.6. My husband and I hold a joint account in SBI. Can we avail the overdraft facility against our FD?
Answer: Yes, joint account holders can avail the overdraft facility against fixed deposit by visiting the nearest SBI branch.7. I hold an NRO deposit in ICICI Bank. How do I repay the loan I have availed against my deposit?
Answer: The repayment for the loan availed against your NRO deposit from ICICI Bank can be made by adjusting the FD or making fresh remittances through the usual banking channels, from outside India. Repayment can also be made out of the funds in your NRO account.8. What is the minimum loan amount that I can avail from SBI against my FD as an overdraft?
Answer: To avail an overdraft facility from SBI against your FD, the minimum amount should be Rs.25,000.9. Can I avail an online overdraft facility against my tax saving deposit in SBI?
Answer: Unfortunately, SBI does not offer overdraft facilities on tax saving deposits and recurring deposits.10. What is the overdraft limit on FCNR deposits in HDFC Bank?
Answer: You can avail an overdraft of up to 70% of the deposit amount in your HDFC FCNR deposit.
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