Quick information on Loans against Fixed Deposit

Here’s some quick information on Loans against Fixed deposits.

• Loans can be taken against Fixed Deposits for up to 90% of the latter’s value.

• Loans are granted as overdrafts against deposits, or as demand loans.

• Banks like ICICI, HDFC, SBI, AXIS Bank, etc. offer loans against FDs.

• NRIs can also get loans against their FDs.

• NRIs can invest in NRI FDs through NRE, NRO, and FCNR Accounts.

• Loan against Fixed Deposit are a great way to get liquidity using of a product that does not have a lot of liquidity.
  

• Loans against FDs generally carry lower interest rates than unsecured loans.

• The tenure on Loans against FDs cannot exceed the maturity date of the FD.

• In order to begin the process of applying for a loan, you must first fill out an application form furnishing all the relevant information.

• Repayment plans on FDs are at the discretion of the bank.

• FDs which are free from restraints and liens are the only ones considered for loans.

• FDs opened in the names of minors cannot be used to get a loan.

• The bank holds the rights to close the FD at any time, if the borrower defaults on payments.