Bank Loan on Fixed Deposit: Loan is very helpful to meet the financial requirements. Many types of loans can be taken from the bank. From home loan to personal loan, you can easily get it from the bank. At the same time, loan amount is taken under some bank schemes. Banks will charge you some interest rate for this loan. Different interest rates are charged on all types of loans.
You can avail loan against fixed deposit. If you have made a fixed deposit, you can borrow against your deposit. The bank will provide you loan on this amount. This is a more effective and low cost loan than the loans available in the market, which you will get through an easy process. For this you will not need any extra document.
Easy process of loan on FD
If you want to take loan on FD then you will not need to do much extra. No credit card history, low interest rate and fast processing to get the loan. With this easy process, taking loan on FD has become more famous. For retail customers, credit on FD is generally given in three ways. There is no fixed tenure in a demand loan as you can repay it as per your convenience before the agreed time frame which should be before the maturity of the loan. You can pay for it properly.
How much loan amount will be available
Many banks usually offer overdraft (OD) facility on fixed deposits. When you ask for an overdraft on your FD, a credit limit is approved on your FD. The credit limit is usually between 70-95 percent of the deposit amount. Some banks may also offer more than this limit. The loan amount varies from bank to bank and also on the amount deposited. However, no bank can give loan on the entire FD.
interest rate on FD
This is a much cheaper loan than a personal loan, on which you can take the loan amount. Banks charge 50-200 basis points more interest rate than the interest rate paid on behalf of FD. If you take a loan on FD, then according to some experts, interest can be charged from 5 to 8 percent on this loan amount.
no processing fee
This is a secured loan. No processing fee is charged from the bank on this.
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