• PNB Loan Against FD

    The option of availing a Loan against your Fixed Deposit is offered by most banks operating in the country. Given the fact that a loan against the term deposit can be had at a low interest rate and also prevents you from breaking the fixed deposit, makes it a good option. It helps you in saving both time and money.

    PNB Loan Against FD - Eligibility Criteria

    A loan against the Fixed deposit account opened with Punjab National Bank can be availed by:

    • An Individual (Singly/Jointly)
    • Minors who have attained the age of 10 years
    • Company/Corporate body
    • Commercial organizations
    • Partnership/Proprietorship firms
    • Hindu Undivided Families (HUFs)
    • Charitable/Educational institutions
    • Clubs, associations, society etc.
    • Trusts/religious institutions
    • Municipality/Panchayat
    • Government/Quasi government body
    • Illiterate and blind persons

    Rate of Interest

    The rate of interest charged for a loan against PNB fixed deposit is listed below:

    • For general public – 4% p.a. to 6.25% p.a.
    • For Staff and ex-Staff
      • Advance up to Rs.10 lakh – At par with interest on the deposit
      • Advance above Rs.10 lakh – 1 percent above the interest rate allowed on deposit

    Loan period

    The maximum loan period for loan against term deposit is up to 3 years or residual period, whichever is less.

    Eligible Fixed Deposit

    To avail a loan against the fixed deposit, the term deposit account should have a residual period of up to 3 years. It must be noted here that you cannot avail a loan against a tax saver or capital gain FD.

    Advance Granted against FDs Standing in the Name of the Borrower

    Maturity period remaining at the time of granting Advances Margin
    Up to 24 months 5%
    24 months 1 day to 36 months 7.50%
    36 months 1 day to 48 months 10%
    48 months 1 day to 60 months 12%
    60 months 20%
    Advance against third party deposits 25%
    Advance up to Rs.3 lacs for members of Staff/honorably retired/voluntarily retired/ widow of Staff 5%
    Advance above Rs.3 lacs for members of Staff/honorably retired/voluntarily retired/ widow of Staff As applicable to public

    How to Apply for PNB Loan Against FD online

    In case, you want to apply for loan against a FD account opened with PNB, you need to follow the steps mentioned below:

    • Step 1: Log in to your internet banking
    • Step 2: Click on ‘Manage Accounts’
    • Step 3: Under the Manage Accounts tab, click on ‘Open OD Account against FD’
    • Step 4: Next, select FD account against which you want to avail an overdraft
    • Step 5: Enter the amount you want to avail
    • Step 6: Click on ‘Agree’ button displayed under the terms and conditions
    • Step 7: Once that is done, the OD account number will be displayed on the screen and will be visible under ‘Operative Accounts’

    FAQs on Loan Against PNB FD

    1. Can I apply for a PNB loan against FD offline?

      Yes, you can apply for a PNB loan against FD offline by visiting the nearest PNB bank branch along with all the relevant documents. A representative from the bank will help you with the application process.

    2. I am looking to avail a loan against FD from PNB. Will partial withdrawal be allowed at a later date?

      No, partial withdrawal facility will not be allowed at a later date if you avail the loan against facility.

    3. Will pre-mature closure of FD be allowed if I avail the loan against FD?

      Yes, pre-mature closure of FD will be allowed provided that you have repaid the outstanding amount if any.

    4. The FD account is in the name of a minor. Can the minor avail loan against FD facility?

      No, the minor cannot avail a loan against FD. A guardian on behalf of the minor can do so.

    5. Can I apply for a PNB loan against FD through the PNB mobile app?

      Yes, you can log in to the PNB mobile app using your credentials and apply for loan against FD. The process is extremely simple and hassle-free.

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