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Bajaj Finance: All you need to know about Loan against FD- eligibility, Interest rate, Tax Benefits

by Aman Khanna Finance

Fixed Deposits (FD) have been the most sought after investment schemes as compared to the rest of the schemes offered by financial institutions in India. Fixed Deposits stands out among the rest of the deposits due to the high return on investment it provides to its account holders as well as the assured returns. Prominent Non-Banking Financial Companies (NBFCs) like Bajaj Finance allow you to take a loan against FD to avoid the risks associated with premature withdrawal. Moreover, Fixed Deposit with Bajaj Finance offers a higher interest rate to senior citizen applicants.

Benefits Associated With Fixed Deposits

  • The principal amount associated with Fixed Deposits is not subject to market fluctuations with respect to the interest rate.

  • Fixed Deposits provide a high rate of Return on Investments (ROI) as compared to other investment schemes.

  • The reliability of Fixed Deposits can be known by checking the credit rating's associated with it. This acts as a rule of thumb for individuals who wish to know the credit eligibility associated with the investment plan.

  • It generally provides a higher interest rate to senior citizens.

  • Some Fixed Deposit Schemes also offer periodic interest pay-outs to cater to day to day expenses of an individual.

  • Fixed Deposits provide flexible tenors to the account holders.

  • Investments tracking has been made easier and hassle-free due to the emergence of online account management provided under Fixed Deposit Scheme.

Things you must know about Loan against Fixed Deposits

Certain future contingencies such as medical emergencies, educational fund requirements, and marriage expenses, etc. lead to pre-mature withdrawals of Fixed Deposits. To avoid that Bajaj Finance has provided the facility of availing Loans against FD for account holders.

This facility enables an individual not to break their Fixed Deposits and avail a loan against FD in just 24 hours.

In case of a cumulative Fixed Deposit, an individual can get 75% of the amount invested as a loan. In case of non-cumulative Fixed Deposit, the individual is entitled to get 60% of the amount invested in the form of a loan. There are no extra charges incurred to the account holder under this facility. The documentation is also minimal.

FD Interest Rates under Bajaj Finance Fixed Deposit

Tenor

(Months)

Minimum Initial deposit (in Rs.)

Cumulative

Non-Cumulative

Monthly

Quarterly

Half-yearly

Annually

12 – 23

25,000

8.00%

7.72%

7.77%

7.85%

8.00%

24 – 35

8.15%

7.88%

7.93%

8.00%

8.15%

36 – 60

8.75%

8.42%

8.48%

8.57%

8.75%

Special tenors scheme

15 Months

1,00,000

8.05%

7.77%

7.82%

7.89%

8.05%


Under Senior Citizen FD, the interest rate is 0.35% higher as compared to the Regular FD provided under the same.

Also. Renewals under this policy provide an additional 0.25% interest to the individual as compared to their previous policy.

Tax Benefits under Bajaj Finance Fixed Deposits

Under this Scheme, the interest which is earned by the individuals is taxable under the law. The Tax Deducted at Source (TDS) is generally applied in the range of 0-30%. Furthermore, this depends on the income-tax bracket of the account holder concerned.

Financial Institutions deduct 10% of the investment if PAN card details are known. In case the PAN card details aren’t known the deduction is subject to 20% of the investment. (This is applicable when the interest provided is more than Rs 10,000/- in a year).

In case the interest amount does not exclude the 10% mark, individuals can claim a refund of the Deducted TDS. For avoiding deduction, individuals need to submit Form 15G to their respective financial institution. In case of senior citizens, Form 15H needs to be submitted.

In case the individual falls in the tax bracket of 20-30%, they may need to pay extra tax which may be above the TDS deducted by their respective financial institution.

Optimize Fixed Deposits with Bajaj Finance

Bajaj Finance Fixed Deposit provides FD Scheme to individuals who seek to grow their earnings under a safe avenue. The features provided under this are:

  • FD Calculator is provided to the individuals to estimate their return in advance and calculate their maturity amount under the same.

  • The company provides 200+ branches in 200 cities across India.

  • The company is accredited with ICRA rating of MAAA and CRISIL rating of FAAA in India.


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About Aman Khanna Innovator   Finance

18 connections, 0 recommendations, 60 honor points.
Joined APSense since, March 16th, 2017, From Delhi, India.

Created on Mar 29th 2019 05:31. Viewed 1,122 times.

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