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Overdraft against Fixed Deposit

Apply For Overdraft against Fixed Deposit

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Top Features Of Overdraft against Fixed Deposit

About Overdraft against The Fixed Deposit

    The most popular option for investment can now help you get liquidity for your household or business requirement, now get a loan against your fixed deposit.

    This is a facility provided by banks and financial institutions that allows you to borrow money against the value of your Fixed Deposit. Instead of withdrawing the funds from your FD prematurely, you can avail of a loan while keeping the FD intact. The loan amount is typically a percentage of the FD's value, with interest charged on the borrowed amount.

Features and Benefits

Features and Benefits of Loan Against the Fixed Deposit

  • Flexibility and Convenience: An overdraft facility provides you with the flexibility to withdraw funds as per your requirements. You only pay interest on the amount utilized, making it a cost-effective solution for managing short-term financial needs.
  • Repayment Flexibility: With an overdraft facility, you have the flexibility to repay the borrowed amount at your convenience. You can choose to repay it in full or in installments, depending on your financial situation and bank’s approval
  • Interest Savings: Similar to a loan against FD, the interest rates for an overdraft against FD are typically lower than those for unsecured personal loans. This results in interest savings over the borrowing period. Interest will be 1% above the FD rate given to the customer
  • Instant Access to Funds: By opting for a loan against your FD, you can access funds quickly without the need to break your deposit. This can be beneficial in times of emergencies or when you require immediate financial assistance.

Fees and Charges

Rate of Interest: 1% above the interest payable on FD offered

ROI for Overutilization above OD limit: For utilization above the overdraft limit, additional rate of 1% will apply on existing OD rate for the over utilized amount.

Eligibility Criteria

Any customer whose account falls under the following category is eligible:

  • Individual/s and Sole Proprietary concerns
  • Partnership Firm
  • Private & Public Ltd Companies
  • HUF Accounts
  • TASC Accounts
  • Non-Resident Accounts

How to apply for Overdraft Against the Fixed Deposit?

Eligible customers can visit their nearest branch and fill the required form to apply for overdraft against the Fixed deposit

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