You cannot foresee emergencies, and when you need funds quickly, a simple way to get money involves taking a loan against a fixed deposit. Moreover, instead of breaking your whole investment or a part, you can avail of a loan against FD. If you have a fixed deposit in HDFC Bank, you can opt for a loan against FD facility, and this is called an overdraft. With the HDFC loan against FD scheme, you get to borrow upto 90% of the overdraft on your loan. You have to repay the loan only as far as what you have borrowed with interest. The unborrowed portion of your FD continues to earn the HDFC Bank interest rate as in normal circumstances.
When you take an HDFC Bank loan against FD, you essentially take a loan without breaking your FD, and that’s the prime advantage of a loan against FD. Here are some key features of a loan taken against a fixed deposit:
Instantly, you get to avail 90% of the overdraft based on your fixed deposit.
Only a minimum amount of ₹25,000 is required in your FD, for a tenure of 6 months, so you can be eligible for a loan against FD.
If an FD is held in a single name, then this loan can be taken with quick approval through the services of net banking.
You can pay back the loan with interest only as far as the amount you borrow. The rest of your FD can continue to earn interest as usual.
When you opt for an HDFC Bank loan against FD, interest rate is kept low, so you can make repayments without worry.
You get flexibility as you choose your amount to be repaid with convenient repayment tenors that you can opt for.
Taking a loan against FD is a great way to keep your FD intact, while you still have cash in any emergency or for any other purpose. With an HDFC FD, you can do this quite easily, but a Bajaj Finance FD offers you considerable advantages which you should consider. Here are some comparisons of features/advantages of a Bajaj Finance FD vs an HDFC FD:
Interest Rate - Before you take a loan against FD, it's a good idea to be informed about interest rates on FDs. For a fixed deposit with Bajaj Finance FD, you get a cumulative interest rate of upto 8.10% which is much higher than interest rates offered for even high tenure deposits at HDFC Bank.
Senior Citizens - If you are a senior citizen, you get a higher FD interest rate than you would with an HDFC FD.
Bajaj Finance FD offers FD tenors going up to 20 years, so you can avail an overdraft anytime in that period, whereas HDFC FDs are for a maximum of 10 years.
If you avail of Bajaj Finserv overdraft facilities, you pay no charges for foreclosure, whereas with HDFC Bank, you pay extra costs. Besides this, you pay interest on the amount you withdraw in an overdraft from HDFC Bank, and this is 2% over your regular HDFC Bank FD interest rate.
At Bajaj Markets, you get to select the best loan against a Bajaj Finance FD, offering you higher interest rates, with higher tenures than those offered by HDFC Bank FDs.