How to Close an Overdraft Against a Fixed Deposit

An overdraft against a fixed deposit allows you to borrow up to a specified limit based on the value of your fixed deposit, while the deposit remains intact and continues to earn interest. A hold, also known as a lien, is placed on the fixed deposit while the overdraft remains active. Closing the overdraft means repaying the full outstanding amount, including the amount withdrawn and any applicable interest, so that no amount remains due in the overdraft account.

Once the lender confirms that the outstanding amount has been fully repaid, the hold on the fixed deposit is released. You can then access the fixed deposit according to its applicable terms, including withdrawing or renewing it where permitted. Closing the overdraft does not change the fixed deposit's original maturity date or interest rate, as the fixed deposit and overdraft remain separate products linked through the hold.

Steps to close an overdraft against a fixed deposit through Bajaj Finance

You can close your overdraft against a fixed deposit through the Bajaj Finance App, website, or by visiting a branch, depending on your outstanding amount and account type.

Follow the steps: 

1. Log in to the Bajaj Finance App or website using your registered mobile number or Customer ID.
2. Go to your active accounts and select the overdraft account linked to your fixed deposit.
3. Check the total outstanding amount, including any accrued daily interest on the utilized limit.
4. Repay the full outstanding amount using the available online payment options to bring your loan balance to zero.
5. Go to 'Menu', select 'Help and Support', and choose the relevant overdraft account.
6. Select the query type related to 'Facility Closure' or 'Release fixed deposit Lien' to submit your closure request, where available.
7. Submit the request along with any required details and retain the service request number provided to track its status.
8. Obtain the closure confirmation and updated fixed deposit receipt showing the lien release for your records.

If you cannot check the outstanding amount or make the payment online, contact customer care or visit a branch to complete the closure process.

Keeping the relevant account and payment details ready can help you complete the closure process efficiently.

You may need:

• The overdraft account number or the linked fixed deposit number
• A valid ID proof if you are visiting a branch
• The confirmed outstanding amount, including applicable interest
• Bank account details if payment is being made through a method other than the available online payment option

Interest may continue to accrue on the outstanding overdraft amount until repayment. Confirm the exact payable amount before making the final payment to ensure the full outstanding amount is cleared.

What happens to your fixed deposit after the overdraft is closed?

The status of your fixed deposit changes depending on whether the overdraft is active or has been fully repaid.

Closing the overdraft does not change the fixed deposit's original maturity date or interest rate. These remain governed by the terms applicable to the fixed deposit.

What happens if you leave an overdraft against your fixed deposit unpaid?

An unpaid overdraft can increase the amount you need to repay because interest may continue to accrue on the outstanding amount. If the overdraft remains unpaid and unresolved, the lender may recover the outstanding amount from the fixed deposit, subject to the applicable terms. This may reduce the amount available to you from the fixed deposit when it matures. Prolonged non-repayment may also affect your credit history, depending on the applicable reporting practices. Repaying the outstanding overdraft and completing the closure process helps release the hold on the fixed deposit once the lender confirms that the account has been fully settled.