LOANS AGAINST DEPOSITS
Loan against FD (Fixed Deposit) is a type of secured loan in which customers can pledge their fixed deposit as security and get same amount in terms of loan. The amount of the loon is subjected to the FD deposit amount. This can go up to 90%-95% of the deposit amount.
Who is Eligible for this Loan Against Deposit?
Loan against fixed deposits can be availed by all fixed deposit holders being it individual holders of with Joint accounts
if the FD is on minor name, then this toon against ID will not be eligible
Investors of a 5-year tax-saving FD also not eligible for this type of loan
Benefits of Loon Against Deposits
it is having Low interest rates when compared to other loans like personal loans
No need to break I’D and go for premature withdrawal resulting in loss of interest on TO
No processing fees
Loans against deposit con be availed against domestic as well as NFDs
Eligibility for Loan Against Deposits
To be eligible for a loan against deposits, the very basic rule is that one should hold a fixed deposit with the bank that he/she are availing the loan from and any of below-given individuals/entitles con avail the loan
Resident Indian citizens
Family Trusts
Hindu Undivided Family (ur)
Clubs societies, and associations
Sole proprietorships group companies and partnership terms
Disadvantages of Loan Against Deposit
If a borrower is unable to facilitate the loan, the bank or financial institution has the complete rights to foreclose the fixed deposit to recover the money lent.
The tenure of the loan given against the FD should not be more the remaining tenure of the fixed deposit.
Time & Conditions