Federal Bank Loan against FD Interest Rate

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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.

Federal Bank Loan Against FD Interest Rates

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	Interest Rate
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)

Benefits of Loan Against Federal Bank Fixed Deposit

Quick Access to Funds

Unlike other assets, putting your FD account as loan collateral saves a lengthy approval process. So, you can access these funds easily, which is quite helpful in emergencies.

Up to 90% of deposit value

Federal Bank allows you to take a loan equivalent to 90% of your deposit. So, the higher the deposit, the higher amount you can expect as a loan when choosing a Federal Bank loan against FD.

Easy Process

Since you pledge your FD deposits as security, you save yourself from lengthy paperwork. In addition, you can also access it online or through SMS without having to visit a branch.

No Processing Fee

Another benefit you enjoy when choosing a Federal Bank loan against FD is that you do not have to pay a processing fee. Moreover, you can pay the loan back in instalments or a lump sum amount.

Continued Interest on FD

Your FD is not interrupted and continues to earn interest when you take a loan against it. The interest rates are merely 2% over and above the deposit rate for loans against your own FD.

Features of Federal Bank Loan Against FD

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.

Federal Bank Loan against FD: Eligibility Criteria

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

Federal Bank Loan against FD: Repayment Option

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.

How to Apply for Federal Bank Loan Against Fixed Deposit?

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.

Disclaimer

The information provided by BFDL herein above is related to the Non-Partnered Banks/ NBFCs and is just for the purpose of information and under no circumstances the information provided hereinabove is intended to be source of advice or recommending any financial investment advice or endorsement of any sort.

The information including interest rates with regard to fixed deposit, provided on this website is gathered through publicly available sources over the internet and is considered as accurate and reliable to the best of our knowledge. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes etc. as well as offers by the Non-Partnered Banks. The use of information set out is entirely at the User’s own risk and User should exercise due care prior taking of any decision, on the basis of information mentioned hereinabove. You are advised to visit/ contact the respective Banks/ NBFCs to verify the information before making any investment or opening an account. Further, BFDL does not undertake any responsibility or liability to update this information. YOU ARE SOLELY RESPONSIBLE FOR ANY LIABILITY OR DAMAGE YOU INCUR THROUGH ACCESS TO OR USE OF THE SITE OR SUCH INFORMATION OR MATERIALS EXCEPT WHERE THE LAWS AND REGULATIONS OF A PARTICULAR JURISDICTION CONCERNING WARRANTIES CANNOT BE WAIVED. Additionally, display of any trademarks, tradenames, logo and other subject matters of intellectual property owners. Display of such Intellectual Property along with the related product information does not imply BFDL’s partnership with the owner of the Intellectual Property of such products.

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Monthly Interest on FD

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.