SBI Loan Against FD

At times, you may consider liquidating your fixed deposit to accommodate an unanticipated emergency. However, this results in losing out on the interest income you may 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. With a loan against an SBI fixed deposit, investors can meet their expenses without liquidating their FDs. Another exciting aspect of an SBI loan against 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 an SBI loan against FD and other essential details.

Disclaimer: Note that the current Marginal Cost of Funds Based lending Rate (MCRL) is fixed at 8.30%.

Here are a few advantages of availing a loan on SBI FD:

• Loan amount of up to 95% of your total FD value

• Can get a demand loan or an overdraft against SBI FD, depending on your needs

• Interest rate charged at 1% above the prevailing FD rate

• Zero loan processing charges with nil prepayment penalties 

• Fixed repayment tenure based on your repayment capacity

• Minimum loan amount of ₹5,000 for availing an online overdraft facility

• Maximum amount of up to ₹5 Crores sanctioned for an online overdraft loan

• Can earn interest on your existing fixed deposit used for the loan

When availing an SBI loan against FD, ensure that you meet the following eligibility parameters:

• You need to have a fixed deposit account with SBI

• You must be at least 21 years to avail an SBI loan against FD

• All sole proprietorship and partnership firms can avail an overdraft against SBI FD

• The FD against which you apply for a loan should not have matured when availing a loan

• If you hold RD or FCNR deposits, you are still eligible to apply for an FD

The repayment time is the period during which you must complete your loan repayment. Like other credit facilities, you have to follow a fixed repayment period when availing an SBI loan against FD. 

However, SBI proposes the repayment schedule after properly analysing your financial standing. This helps reduce the burden on your monthly budget. 

So, when availing a special SBI term deposit online or offline, you need to repay the loan within a maximum period of 5 years. However, in the case of a regular term deposit booked online or offline, there is a repayment tenor of 3 years.

Knowing the repayment options before availing a loan on SBI FD helps you manage and plan your finances efficiently.

When availing a loan or overdraft against SBI FDs, the minimum loan amount disbursed is ₹5,000. Note that you can avail a maximum loan amount of up to ₹5 Crores when pledging your fixed deposit as collateral.

Another interesting feature of availing a loan against SBI fixed deposits is that you can get up to 95% of the total FD amount as the loan. With all the unique features and minimal documentation, getting a loan against SBI FDs is easy and quick.

Follow the process mentioned below to avail a loan against SBI FDs:

1. Log in to the SBI net banking portal with your credentials

2. Navigate to the e-fixed deposit section 

3. Select the ‘Overdraft Against Fixed Deposit’ tab

4. View the list of FDs booked with SBI

5. Choose a specific FD from the list

6. Click on the ‘Proceed’ tab

7. Check the details such as overdraft amount, applicable interest rate, etc.

8. Tap on the ‘Submit’ button

9. Key in the password sent to your mobile number

That’s all it takes to open your loan account. So, follow these easy steps from the comfort of your home and avail a loan against SBI FD in no time! You can get more details regarding the process on Bajaj Markets.