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Loans
Loan against Fixed Deposit
During a cash crunch or emergency, people tend to look for loans from a lot of sources. One of those sources can be getting loans against fixed deposits (FD) from banks. This is a time-efficient way of getting a short-term loan. Instead of breaking the FD prematurely, depositors can easily apply for a personal loan with the bank.
FD used as Collateral
While taking a loan against FD, banks keep the FD as collateral or security. This kind of loan is suitable for people who have a damaged credit score or those who do not meet the eligibility criteria and are unable to get a personal loan from the bank.
To apply for Loan Against Fixed Deposit, you need to submit these documents:
Application form
Fixed deposit receipt
ECS mandate (only for non-cumulative FD)
Cancelled cheque (only for non-cumulative FD)
Features of loan against fixed deposit:
| Features | Details |
Eligibility |
All FD holders (single or joint holders), except minors |
Loan Amount |
Avail Loan up to 90% of the value of your Fixed Deposit |
Tenure |
Cannot exceed FD tenure |
Loan Interest Rate |
12.5% |
Processing fee |
None |
Collateral |
Fixed Deposit |
Documentation |
Minimal documentation as the FD exists with the bank issuing the loan |
*Kindly note that the list of documents mentioned is indicative. During the loan process, additional documents may be asked for. The same will be appropriately communicated to you as and when required.