How To Get Loan Against Fd Process Interest Rates Fees Banks

Loan Against FD, Interest Rates, Banks, Branch Locator

Today’s fast-paced and inflation-based world is becoming increasingly essential to maintain significant savings. While multiple investments and savings options are available, fixed deposits remain a highly preferable option. Citizens of the country can easily open their Fixed Deposits with any Indian bank. These are safer than mutual funds and equities and provide decent returns.

Today, banks are free to set their own FD rates. Throughout decades, this investment option has offered guaranteed returns. Fixed Deposits also serve as an income plan for retired individuals. Compared to other options, Fixed Deposits are relatively liquid and offer many benefits.

Speaking of the loan facility, financial institutions today extend a line of credit to customers against their fixed deposits. One can avail of these loans without fulfilling any additional requirements. Generally, the loan-to-value for these FD-based credits ranges between 85%-90%. On the other hand, options such as mutual funds do not offer such facilities.

If you wish to know more about FD-based loans, a detailed guide is here. To get a loan against fixed deposits, a borrower does not require to meet any income eligibility criteria. These are usually issued in a demand loan or an overdraft. To get a fixed deposit loan, one must follow the process specified by a particular bank/ financial institution. Here are some of the best options and processes for the same.

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Axis Bank Loan Against FD

Yes, the renowned name from India’s baking sector offers great loans against fixed deposits. This facility can help borrowers meet their cash requirements without having to liquidate their funds. One can avail of a loan for up to 85% of the value of their Fixed Deposit with Axis Bank.

Axis Bank also provides multiple benefits for loans against fixed deposits. Borrowers can get access to liquid funds with a minimum limit of Rs. 25,000.
Additionally, Axis Bank provides this facility at competitive rates. The borrower is charged only the interest amount on the actual utilized amount and tenure.
Additional post-dated cheques or EMIs are not a concern. For the remaining tenure of the Fixed Deposit, Axis Bank provides an FD Account with a Cheque Book, Debit Card, and more banking facilities.
Above all, no prepayment charges are applicable. A borrower can make the payment in an overdraft account from valid channels.

The process of availing of Axis Bank loans against fixed deposits is quite seamless. A borrower can go on the Axis Bank official website and can fill up a quick form with minimal paperwork. The system takes it ahead from there. Alternatively, one can visit an Axis Bank branch. Here is a list of branches in India:

Axis Bank Loan Against FD: Axis Bank Branch Locator

Bajaj Finserv Loan Against FD

Lately, Bajaj Finserv has gained immense popularity in the banking and financial sector. The institution comes under the Bajaj group and provides excellent financial services. Therefore, the loan against the fixed deposit option by Bajaj Finserv is quite feasible.

Bajaj Finserv offers a high-value loan, providing up to 75% and 60% of the FD amount. This is provided for both cumulative and non-cumulative FDs, respectively.
A borrower can also enjoy a flexible repayment option that starts from 3 months and stretches to the remaining tenure of the Fixed Deposit.
Additionally, Bajaj Finserv’s process for Loans against Fixed Deposits guarantees minimal documentation, Zero extra charges, and Quick processing.

To apply for a loan against Fixed Deposits with Bajaj Finserv, one needs an application form, a canceled cheque, and a Fixed Deposit receipt. The list may vary according to time-specific requirements. One can easily download the application form from Bajaj Finserv official website or get it from the branch. Here is a list of Bajaj Finserv branches in India:

Bajaj Finserv Loan Against FD: Bajaj Finserv Branch Locator

Citi Bank Loan Against FD

Another option to get a loan against fixed deposits is Citi Bank. The bank offers this facility to domestic customers against their deposits held by Citi Bank. A borrower can avail 90% of the value of their deposits. Other members can also avail.

Citi Bank offers multiple features for borrowers looking to avail of loans against their fixed deposits. The process is straightforward, convenient, and hassle-free. Citi Bank offers competitive interest rates, charged only on usage. The loan facility is also applicable and available against deposits held by other members of the same household. A borrower can also enjoy facilities such as a Chequen Book, a Citi Bank international ATM access, etc.

A borrower does not need to deal with major documentation to apply for a loan against Fixed Deposits with Citi Bank. They can simply fill out the application form from the official website. The process can be completed after consultation with one’s relationship manager. Here is a list of Citi Bank branches in India:

Citi Bank Loan Against FD: Citi Bank Branch Locator

Bank Of Baroda Loan Against FD

One of the most trusted and reliable names in the banking sector comes to one’s rescue with the facility for loans against fixed deposits. The bank assures services in a timely and efficient manner without any hassle.

For a loan against FDs from the Bank of Baroda, a borrower can provide 95% of the deposit value. The minimum amount for the same stands at Rs. 25,000.
Bank of Baroda charges an interest rate of 1% higher value than the interest one earns on the fixed deposit.
Additionally, no processing charges are applicable for availing of this facility. Borrowers can opt for these loans via an overdraft or a demand loan.

To apply for a loan against Fixed Deposits with the Bank of Baroda, a borrower needs fixed deposit receipts, a filled loan application form, and a signed loan agreement. The form can be downloaded from the bank’s official website. Likewise, a borrower can also choose to visit a branch. Here is a list of Bank of Baroda branches in India:

Bank of Baroda Loan Against FD: Bank Of Baroda Branch Locator

Federal Bank

Finally, Federal Bank is an excellent option for availing a loan against FDs. The bank is positioned to be a citizen’s perfect banking partner. For several years, Federal bank has assisted its customers with excellent services.

A borrower can avail of a loan of up to 90% of their FD amount with Federal Bank. These are provided against Fixed Deposits, Recurring Deposits, and Cash Certificates.
Federal Bank grants loans only against the deposits free from restraint, encumbrance, or lien. Additionally, these should not be registered in the names of minors.
While availing of a loan against Fixed Deposits, Federal Bank does not apply any penal interest or processing fees.

However, Federal Bank offers the most unique and notable process for loan applications. A borrower can either choose to visit a Federal Bank branch or can also apply for a loan against Fixed Deposits via SMS or a missed call. For doing so, a borrower is required to give a missed call on the number mentioned on the official website. Post that, one receives an acknowledgment link through SMS and is directed to the BYOM portal. Here is a list of Federal Bank branches in India: