You can get a secured loan against a fixed deposit by pledging your deposit as collateral in exchange for the loan amount. Most people break their FDs before they reach maturity in case of an emergency. This affects the investor's confidence as the investment plans are disrupted.
People seek loans from a variety of sources to satisfy their needs in the event of a financial emergency, such as medical expenditures or wedding debt. Loans against fixed deposits are one such source. A loan against fixed deposit is a secured loan that allows you to use your deposit as collateral in exchange for a loan. It has a lower interest rate than other unsecured loans, such as personal loans. The processing is free of charge. It is not essential to break FDs and opt for early withdrawal. This effectively keeps your FD from losing interest.
You can acquire a loan for up to 75% of your investment if you have a cumulative fixed deposit.
You will be able to satisfy your financial obligations without difficulty, as there are no additional costs for foreclosure or partial prepayments.
You may be confident of approval with just one page of documentation.
Yes, you can. For an affordable loan against FD interest rate, there is no minimum amount that must be invested. The minimum deposit amount, on the other hand, varies by financial institution. For example, you can invest as low as ₹25,000 in a Bajaj Finance Loan on Fixed Deposit without having to wait for a larger corpus.
To be qualified for a loan against an FD, you must have a fixed deposit with the bank from which you are taking the loan, and you must be one of the following individuals or entities:
Clubs, groups, and organisations associated with the Hindu Undivided Family (HUF).
Sole proprietorships, group corporations, and partnership firms
To apply for a loan against a fixed deposit, you must submit the following documents:
Completed and duly signed application form
Agreement that has been duly signed
Fixed/Term Deposit receipts that have been legally discharged in the bank's favour