1 min read
25 May 2021

Fixed Deposits (FDs) offer secure and guaranteed returns, allowing you to multiply your money faster than a savings account. However, making a premature withdrawal in times of need can result in you losing out on returns and paying a penalty charge. So, instead of prematurely withdrawing your FD, you can avail of a Loan Against a Fixed Deposit from Bajaj Finserv. Not only will your FD remain intact, but you can also benefit from a high amount in your account within a day.

There are plenty of benefits to avail of from a loan against your FD. Read on to find the answers to questions that you may have about this finance option.

How to avail of a loan against FD?

Bajaj Finserv makes availing of a loan against your FD an easy and hassle-free process. You get the required funds instantly and without any risk. All you need to do is submit an application form along with your fixed deposit receipt. If you have a non-cumulative FD, you must also submit an ECS mandate and a cancelled cheque.

How much can be availed of as a loan by pledging your FD?

If you have a non-cumulative fixed deposit, you can avail of up to 60% of the value of your FD as a loan. This amount is higher, at 75%, if you hold a cumulative FD.

How soon can you receive funds, and what is the cost of borrowing?

The loan is processed within 24 hours and disbursed straight to your bank account. Besides, you don’t have to worry about high interest rates. You only have to pay 2% above what you are receiving as interest on your investment.

What are the eligibility criteria to apply for a loan against FD?

You can apply for this finance option if you are:

  • A resident citizen of India
  • Hindu Undivided Family (HUF)
  • Sole proprietorship
  • Partnership firm
  • Group company

Benefits of Bajaj Finance Loan against Fixed Deposit

1. Loan amount flexibility:

  • Borrowers can avail a loan of up to 75% of the deposit value for cumulative fixed deposits and up to 60% for non-cumulative fixed deposits.
  • The minimum loan value is Rs. 3000, providing flexibility based on individual financial needs.

2. No EMI payments:

  • After obtaining the loan, borrowers are not required to make regular EMI payments.
  • The entire loan amount, along with accrued interest, can be repaid at any time before the maturity date.
  • In case of non-repayment, the outstanding amount will be adjusted from the maturity proceeds of the fixed deposit.

3. Zero foreclosure charges:

  • Bajaj Finance does not impose any foreclosure charges.
  • Borrowers have the freedom to close their loan at any BFL branch without incurring additional charges.

4. Competitive interest rates:

  • The Loan against fixed deposit (LAFD) is provided at an interest rate of 2% over FD rate, making it a cost-effective financing option.

5. Flexible tenure options:

  • Borrowers have the flexibility to choose a loan tenure ranging from a minimum of 1 month up to the tenure of the fixed deposit.
  • This flexibility allows borrowers to align the repayment period with their financial circumstances.

6. Dedicated customer portal - My account:

  • Bajaj Finance offers a dedicated customer portal, My Account, enabling borrowers to manage their loans online.
  • Features include downloading loan statements and accessing account details conveniently.

What is the tenor that you can avail of a loan against FD for?

Repayment is easy with a flexible repayment window that extends up to the tenor of the fixed deposit itself, after 3 months from the start of the FD. Besides, to make repayment easier, Bajaj Finserv doesn't levy any foreclosure charges.

The most significant advantage is that even if you have availed of a loan against your FD, you will continue to get an interest on it, which means that your money will continue to grow. Check your pre-approved offer and expedite the process further.

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Frequently asked questions

What is a loan against FD?

A Loan Against FD is a type of loan where you use your fixed deposit as collateral to borrow money from a bank or financial institution.

How does loan against fixed deposit work?

To get a loan against a fixed deposit, you pledge your FD as security, and the loan amount can typically be a percentage of your FD's value. With Bajaj Finance Limited, you can avail up to 75% of the value of your FD.

What is the tenure for a loan against FD?

The minimum loan tenure of a loan against fixed deposit with Bajaj Finance is 1 month and the maximum would be same as the tenure of the FD.

Can I still earn interest on my FD while it's pledged for a loan?

Yes, you can still earn interest on your FD while it's pledged as collateral for the loan.

Is it a good option compared to an unsecured personal loan?

Compared to unsecured loans, a Loan Against FD often offers lower interest rates due to the collateral, making it a cost-effective option.

Can I get a loan against FD online?

Yes, Bajaj Finance Limited offers the option to apply for a loan against FD online, simplifying the application process for borrowers.

How do I repay a loan taken against FD?

The repayment tenure for a loan against FD varies among banks and financial institutions; but is usually short-term, ranging from a few months to a few years. The exact duration depends on the lender's policies and your agreement with them.

How much loan can one get a loan against FD?

Customers can use their fixed deposit as security for a loan against their FD (Fixed Deposit), which is a sort of secured loan. The amount of the FD deposit determines the loan's amount. This may equal as much as 75% of the deposit sum.

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