• OBC Loan Against FD

    The Oriental Bank of Commerce has been among the top banks in the country, offering its customers a wide range of financial products. Among them is the facility of Loan against fixed deposits . If an account holder requires a sum of money, he or she can choose to take out a loan against their fixed deposit account with the bank. This allows them the chance to take a loan without breaking their FD account and also pay back the loan at a lower interest rate compared to regular personal loans.

    Eligibility Criteria for Availing Loan against Fixed Deposit by OBC

    • The applicant must be an Indian national above the age of 18.
    • Firms, companies, trusts, HUF, clubs and association of person can apply for the loan against FDs.
    • Applicants can take either overdraft limit or a demand loan.

    Features of Loan against OBC Fixed Deposit

    • The maximum loan amount would be Rs.5 crore depending on the amount in the fixed deposit.
    • For advance against self-deposits, the interest rate charged would be 1% over the applicable rate on the fixed deposit.
    • For the advances against third-party deposits, the rate of interest applicable would be 2% over the applicable interest rate on the FD with 1 year of the MCLR.
    • The facility does not require any processing fee.
    • A penal interest would be charged if the account is irregularly withdrawn.

    Loan Amount Given against FD

    Tenure/Type of Loan Loan Amount
    For self-deposits of less than 6 months 95%
    For self-deposits of more than 6 months 90%
    For any third-party deposits 85%

    Things to Remember Before Opting for a Loan against FD

    • If a loan is taken against a joint FD account, all holders will bear the repayment of the amount.
    • No loans can be availed from the term deposits which are opened in the name of minors.
    • OBC will reserve the right to close the FD account if the borrowed amount isn’t repaid.
    • The loan will be provided only against the fixed deposits which are free of mortgage or impediment.

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