• 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    • A penal interest would be charged if the account is irregularly withdrawn.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%

    How to Apply for Oriental Bank of Commerce Loan Against Fixed Deposits

    • Step 1: Go to the Oriental Bank of Commerce website: https://www.obcindia.co.in/
    • Step 2: Choose ‘Retail Loans in bank’.
    • Step 3: Select ‘Other Retail Loan’.
    • Step 4: Click on ‘Retail’.
    • Step 5: Key in your OBC Customer ID and enter your registered mobile number.
    • Step 6: Click on ‘Verify’.
    • Step 7: Enter the required details and apply for the loan.

    Repayment Options for Oriental Bank of Commerce Loan Against Fixed Deposits

    • The responsibility of repaying the loan is spread among all the holders of the deposit if it is a joint fixed deposit account. This lowers the burden of the primary holder of the account.
    • Every co-holder has to repay the amount of the loan.
    • The loan will be offered free from lien and restraint.
    • The penalty interest will be charged equal to the overdraft rate of interest for the period of irregularity or irregularly overdrawn.
    Details of deposit Rate of interest
    Advance against self fixed deposits 1.00% over the applicable interest rate on the fixed deposits
    Advance against third party deposits 2.00% over the applicable interest rate on the fixed deposit with a floor of one-year MCLR

    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.

    FAQs on Oriental Bank of Commerce Loan Against Fixed Deposits

    1. How do I know if I am allowed to apply for an Oriental Bank of Commerce loan against fixed deposit?

      You can apply for a loan against fixed deposit with the Oriental Bank of Commerce if you fall under these categories: HUFs, adult Indian nationals, companies, firms societies, trusts, associations of persons, and clubs.

    2. What overdraft limit has Oriental Bank of Commerce established?

      The Oriental Bank of Commerce has set established limit of Rs.500 lakh.

    3. What is the maximum amount of loan that I can get from Oriental Bank of Commerce against my fixed deposit?

      You can get a maximum of 95% of the deposit amount as loan against fixed deposit.

    4. Am I allowed to take a loan against my fixed deposit which is booked with another bank?

      No, Oriental Bank of Commerce does not offer this facility.

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