Loan On FD: Financial crisis can be faced at any time in life. Most of the people opt to break the FD for money whenever the financial crisis surrounds the people. This option should be avoided as far as possible. Your savings come in handy in difficult times. Money can be arranged even without liquidating the FD. You can take loan against FD. Banks give 90% to 95% of the amount deposited in FD as a loan. Apart from this, there is also the benefit of overdraft limit on FD Get. Banks can give you the benefit of overdraft limit up to 90% of the deposit amount.
- Loan taken against FD is a type of secured loan.
- The customer has to declare to the bank that his FD amount as collateral for the return of the loan. Will stay close.
Who can take Loan Against FD?
- Salary, business or any other type of savings account.
- Whether the FD is of an individual or a joint, any person making an FD can take this loan.
- Those with a good credit score can get a loan but it is not a mandatory condition.
Who cannot take this loan?
- Loan cannot be availed in the name of a minor.
- Deposit holders depositing money in Tax Saving Fixed Deposit with tenure of 5 years also cannot take this loan.
How much does interest cost?
- Interest is to be paid on the same amount as the amount borrowed.
- This interest is more than the interest earned on FD.
- On FD You do not have to pay any processing fee for availing the loan.
- Loans availed against FD usually attracts 2% more interest than the FD rate.