CreditMantri Finserve Private Limited
4th Floor Sudhama, 36 Vijayaraghava Road,T Nagar, Chennai, Tamil Nadu 600017
Have any queries? Click here for more details
All written queries will be responded within 1 working day.
We'd love to help you through every step along the way.
Is your Credit Score >750?
Whenever we want to invest our surplus money, the first thing that comes to our mind is fixed deposit. One of the most traditional investment products, fixed deposit, is extremely popular and trusted amongst investors. The hassle-free process, guaranteed returns, and ease of investment makes has attracted many investors towards Fixed Deposit since ages. However, what we do not know is that fixed deposit is much more than just an investment avenue.
If there is an emergency or sudden requirement of cash, we seek loans against various assets. But do you know that you can also avail loan against fixed deposit?
You can pledge your fixed deposit as collateral and avail loan against it from your bank. Loan against fixed deposit is a secured loan in nature.
If you are looking for a loan to meet some financial emergency, look no further and consider your fixed deposit. The loan/overdraft facility is one of the biggest advantages of a fixed deposit account. You can avail loan against a term deposit by pledging as collateral. Not just this, the banks charge comparatively lesser rate of interest than the other forms of loan. This loan is mainly disbursed by the bank in the form of an overdraft.
About Loan Against Fixed Deposit
You can avail about 70% to 90% of your fixed deposit value as a loan. Let us say you have a fixed deposit for Rs.10 lakhs, so you can avail anything in the range of Rs 7 lakhs to Rs 9 lakhs. The remaining amount which remains in the fixed deposit account even after the loan is sanctioned will continue to earn the interest. The loan amount to be sanctioned varies across banks.
The rate of interest for loans against the fixed deposit is much lower than that of other loan forms. Let us say that it is just 2% to 3% higher than the fixed deposit rate. For example, if your bank offers 9.25% on the fixed deposit account, you will have to pay an interest rate of 11.25% on your loan against the FD. This is way below the average interest rate that banks would charge you on personal loans.
One very important point to be noted is that the tenure of the loan against fixed deposit is the same as that of the fixed deposit itself. While the tenure of the loan can be less than the fixed deposit, it cannot exceed the tenure of the deposit. For example, if the tenure of the Fixed Deposit is 5 years, the loan can be either less than or equal to 5 years but not more than that.
This kind of loan is straightforward. There is no requirement of any additional processing fee to be paid as it is the case with other loans. This, in turn, reduces the overall cost of the loan.
This is one sort of loan which is extremely hassle-free. Since you are already the fixed deposit account holder, there is very less documentation involved. You only need to fill up the mandatory forms and there also an option of opting for a loan against fixed deposit online.
Many a time unfortunate events, emergencies and sudden developments may prompt many to break their fixed deposit accounts for immediate cash flow. However, with the option to avail loan against the fixed deposit, you can keep your deposit intact while addressing your immediate cash needs.
1. What is the amount that I can borrow against a fixed deposit?
Banks usually can avail 70%-90% of the fixed deposit as a loan.
2. What will be the tenure of my loan?
The loan against fixed deposit can be sanctioned for a tenure which is the same as or less than the tenure of the fixed deposit.
3. What will be the rate of interest that I need to pay?
The interest rate of the loan is based on the interest rate that the bank is offering you on fixed deposit. Most of the banks offer a rate of 2% to 3% more than the fixed deposit rate.
4. Are non-resident Indians allowed to avail a loan against fixed deposit?
Most of the banks in India now allow loans against fixed deposit facility to the NRIs, NREs, NROs, and FNCR as well.
5. What is the processing fee required for the loan against fixed deposit?
There is no processing fee required for a loan against the fixed deposit.
Get low interest loans & Lifetime FREE credit cards
Get customized Credit Health Report
Improve your creditworthiness
12 Month Loans
3 Month Loans
6 Month Loans
Animal Husbandry Loan
Business Instalment Loan
Cash Credit Loan
Cold Storage Loan
Collateral Free Loans
Dairy Farm Business Loan
Ecommerce Loans In India
Faq Loan Against Property
Government Loans For Small Scale Businesses
Home Improvement Loans
Instant Short Term Loans
Kitchen Modernization Loans
Loan Against Credit Card
Loan Against Insurance Policy
Loan Against LIC Policy
Loan Against Rent Receivables
Loan Against Securities
Loan Against Shares
Loan For Agriculture
Loan For Beauty Parlours
Loan For Businesswomen
Loan For Chartered Accounts
Loan For Construction
Loan For Day Care Centre
Loan For Land Purchase
Loan For Marraige
Loans For Advocates
Loans For Army Personnel
Loans For Defence Personnel And Widows
Loans For Disabled
Loans For Graduates
Loans For Minorities
Loans For People On Benefits
Loans For Restaurants
Loans For Scheduled Caste
Loans For Schools
Loans For Startup Business
Loans For Taxi Drivers
Loans For Unemployed People In India
Loans For Warehouse
Long Term Loans
Medical Equipment Loan
Micro Small And Medium Enterprises Loan
Personal Loan For Low Credit Score
Personal Loans For Self Employed
Reverse Mortgage Loans
Same Day Loans
Small And Medium Sized Enterprises Loans
Small Business Loan For Women
Small Business Loans
Top Up Loans
Working Capital Loan
CreditMantri will never ask you to make a payment anywhere outside the secure CreditMantri website. DO NOT make payment to any other bank account or wallet or divulge your bank/card details to fraudsters and imposters claiming to be operating on our behalf.