loan against fd sbi
A loan against FD is a secured loan wherein you can use your fixed deposit as collateral to avail of a loan from the bank. The interest rate on such a loan is lower than that of personal loans and credit cards, making it a popular choice for those who are looking for quick funding at a reasonable rate. In this article, we’ll take a look at how you can apply for a loan against FD from SBI.
What is a loan against FD?
A loan against FD is a type of loan that allows you to use your fixed deposit as collateral to secure the loan. This can be a useful option if you need money but do not want to break your FD. The interest rate on a loan against FD is usually lower than the interest rate on a personal loan or credit card.
How to Get a Loan Against FD from SBI
If you have an FD account with State Bank of India (SBI), you can use it as collateral to apply for a loan. This type of loan is also called a collateralized loan. Here’s what you need to know about getting a loan against FD from SBI.
When you take out a loan against FD, the bank uses your deposit as security for the loan. This means that if you default on the loan, the bank can seize your FD and use it to repay the debt.
The interest rate on a loan against FD is usually lower than the interest rate on a personal loan or unsecured business loan. This is because the risk to the lender is lower since they have your FD as collateral.
To get a loan against FD from SBI, you can either visit a branch or apply online. To apply online, you’ll need to log in to your SBI account and go to the ‘loans’ section. From here, you can select ‘loan against FD’ and fill out the application form.
Once your application is approved, the loan amount will be credited to your account within 5 working days. The repayment tenure for a
What is the Interest Rate on a Loan Against FD from SBI?
The interest rate on a loan against FD from SBI is determined by the amount of the FD and the tenure of the loan. The interest rate is calculated at 10.5% per annum for FDs up to Rs. 1 crore, and at 11.5% per annum for FDs above Rs. 1 crore. The interest rate is applied to the outstanding principal amount of the loan and is charged monthly.
What are the Eligibility Criteria for a Loan Against FD from SBI?
When it comes to taking out a loan against your FD with SBI, there are a few eligibility criteria that you will need to meet in order to be approved. Firstly, you must be an Indian resident and at least 18 years old. You will also need to have an FD account with SBI that has been active for at least 3 months.
The amount of money that you can borrow against your FD will depend on a number of factors, including the value of your FD, your creditworthiness and the purpose of the loan. However, as a general guide, you can usually borrow up to 60% of the value of your FD.
If you think that a loan against your FD from SBI is right for you, then make sure to speak to your relationship manager or visit your nearest branch for more information.
How to Repay a Loan Against FD from SBI?
If you have taken out a loan against your FD from SBI, you will need to repay the loan as per the terms and conditions of the loan agreement. The repayment schedule and method will be specified in the loan agreement. Generally, you will be required to repay the loan in EMIs, which will be deducted from your account automatically on the due date.
It is important to make timely payments on your loan against FD from SBI, as failure to do so may result in penalties and charges. Additionally, delayed payments may also lead to your FD being prematurely closed by the bank. Therefore, it is advisable to make sure that you have enough funds in your account to cover the EMI payments on your loan against FD from SBI.