As an investor in a Federal Bank FD, you can get a secured loan against your investment if you ever need funds. The Federal Bank Loan Against FD is just like the facilities offered by other issuers, and it is easy to avail.
You can avail of a Federal Bank loan against FD facility from any of the bank's branches, spread across 29 states and UTs of India. Moreover, you can take this loan online through Fed-E-Credit or SMS.
Read on to know more about the Federal Bank loan against FD. This would help you to make an informed decision about this provision.
When deciding whether the Federal Bank Loan Against FD is the best-suited credit option for you, you must be aware of the interest charges:
Type of Fixed Deposit
Loan against own fixed deposit
Deposit Rate + 2.00%
Loan against third-party fixed deposit
Deposit Rate + 2.00% or 12.50% (whichever is higher)
Some key features of a Federal Bank loan against fixed deposits are as follows:
You can avail of a loan against FD even if it is parked in another bank branch. However, you will need to submit the deposit receipts to the loan disbursing branch.
Federal Bank also allows you to avail this loan even with your mobile phone. You need to give them a missed call, and the loan proceeds will begin.
You can take a loan of up to 90% of the deposits in your FD.
Bank does not charge any penal interest or processing fee if you avail of a loan against your FD.
To secure a loan against your FD from Federal Bank, you must fulfil certain requirements under their eligibility criteria, such as:
You must be a resident investor
The minimum deposit must be ₹5,000
You must have an FD solely in your name as joint names/minors are not eligible
The minimum tenor left for FD’s maturity must be more than one day
You can avail loan on any solely-named FD, barring FCNR Deposits, tax-saving deposits and those already pledged as securities for a loan
The bank will fix a repayment schedule taking into account your ability to repay the loan. The maximum repayment period is five years for STDR/e-STDR and three years for TDR/e-TDR.
The Federal Bank loan against FD can be availed by applying for it in any branch, sending an SMS, or through a missed call. Read on to know about the process:
Apply for a loan against FD by visiting the branch where you opened your FD account
Carry the relevant paperwork if you wish to get a loan from a different branch. The bank may ask for a fixed deposit certificate or receipt you received when you opened the account.
Give a missed call or SMS ‘INSTANT LAD’ to 8546995577 to get started with your loan process. You can apply for a loan against FD using BYOM Portal received via an SMS.
Like Federal Bank, Bajaj Finance Loan Against FD also allows you to avail of loans up to 75% of your deposit amount. The interest rate charged is a mere 2% over the interest rate you receive on your deposit.
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You will need to visit that branch with relevant documentation if you wish to get a loan from a different branch. These include a fixed deposit certificate or receipt you received when you first opened the account.
With Federal Bank, you can avail loan against FD for up to 90% of your FD deposit amount. You can also avail of loans against recurring deposits and cash certificates.
Simply visit any branch and fill out the application form to open a loan against your fixed deposit in any bank. Alternatively, you can also access BYOM Portal to apply for the loan by sending an SMS or giving a missed call to 8546995577.
You can avail of a loan of up to 90% of your deposits. So, the higher the deposits, the higher the chances of you getting a larger loan amount.
Yes, you can make a premature withdrawal from an FD. However, the bank may charge a penalty fee of up to 1% of your deposit amount.