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SBI Loan Against Fixed Deposit

At times, you may consider liquidating your fixed deposit to accommodate an unanticipated emergency. This, however, results in losing out on the interest income that you would have received after its maturity. Although, you can still tend to your emergency expenses without breaking your FD investment by taking a loan against your fixed deposit. A loan against FD is a secured loan where your FD acts as collateral in return for your loan amount.

 

State Bank of India also offers such loans against FD for its customers. A loan against SBI FD is preferred by a lot of its customers as it lets them meet their expenses without having to break their FD. Another interesting aspect of a loan against SBI FD is that its rate of interest is lower than other kinds of loans that are present in the financial sector. Given below are the features of a loan against FD SBI and other details.

SBI Loan Against FD Features and Interest Rate

There are several features of a loan against FD SBI. Here is a look at them.

  • Types of Loan Available

Both demand and overdraft loans are available in SBI’s loan against a fixed deposit. For an online overdraft loan on FD SBI, the minimum amount is ₹25,000 while the maximum limit is at ₹5 Crores.

  • Maximum Amount of Loan

The maximum amount of loan that you can avail is 90% of the value of your term deposit. This means that the higher the amount you have in your fixed deposit, the higher loan against FD SBI you can avail if and when the need arises.

  • Available Channels

You can opt for a loan against your SBI FD through both online and offline channels. You can go for the loan through internet banking as well as by visiting SBI branches.

  • Interest Rate

The interest rate that is charged on your loan against FD at SBI is 1% above the relative time deposit rate. The rates are lower as the borrower already has a relationship with the bank and the loan falls under the secured category. The security of the loan is on the underlying fixed deposit.

  • Processing Fee

The processing charge levied on loan against your SBI FD is nil. For prepayment too, no penalty is levied by SBI.

  • Repayment Period

The repayment period for a fixed deposit is based on the repayment capacity of the borrower. The maximum repayment time for SDTR/e-STDR is 5 years and for TDR/e-TDR it is 3 years for overdraft loans while it is done online. If the loan against FD SBI is done at the branch, the repayment time is determined by the bank officials based on the borrower’s capacity.

Bajaj Finance Loan Against FD vs SBI FD Loan Against FD

Bajaj Finance also offers attractive loan options against FD investment just like a loan against FD SBI. Bajaj Finance’s loan against fixed deposit is at lower interest rates, quick processing and flexible repayment options. All of these can be availed with minimal documentation. You can get a loan up to 75% of the amount for a cumulative FD and up to 60% in a non-cumulative Bajaj FInance FD on Finserv MARKETS. Single page documentation and guaranteed approvals make it a better option as compared to a loan against FD SBI.

 

You can repay your loan in a flexible tenor that starts from as low as 90 days from the time when you invested, right up to the remaining tenor of your FD. Just like SBI loan on fixed deposit, Bajaj Finance’s loan against FD also has no foreclosure or part-prepayment charges, making the loans more affordable. You can easily cater to all your emergency needs by applying for a loan against a Bajaj Finance fixed deposit on Finserv MARKETS today.