Interest rates and charges on loan against FD

Bajaj Finance offers a loan against FD at an interest rate just 2% p.a. above your FD rate. There are no hidden charges, processing fees, or foreclosure penalties. Enjoy a transparent and affordable loan against fixed deposit interest rate with quick access to funds.

Frequently asked questions

What is a loan against FD facility?

A loan against FD facility enables you to avail of a loan against your fixed deposit to fund your financial requirements without having to liquidate all funds and lose out on returns at maturity.

Is there any processing fee on my loan against fixed deposit?

There is no processing fee in case of a loan against FD.

Are there any foreclosure or part-prepayment charges?

No, there are no foreclosure or part-prepayment charges applicable on your loan against fixed deposit.

What is the rate of interest on your loan against fixed deposit?

The rate of interest on your loan against a fixed deposit is 2% p.a. above the deposit interest rate.

What are the charges to be paid against loan against fixed deposit?

Common fees include processing fees, part-prepayment fee, foreclosure charges and many more. These fees are typically charged upfront or deducted from the loan amount and can add to the total cost of the loan.

What is the tenure within which the loan taken against FD should be repaid?

The tenure of a Bajaj Finance loan against fixed deposit is up to 36 months.

How can I avail loan against FD at low interest rates?

To avail a loan against a fixed deposit (FD) at low interest rates, follow these steps:

a. Check with your bank or financial institution if they offer this facility.

b. Ensure your FD is eligible for a loan, usually after a specific lock-in period.

c. The interest rate for the loan is typically 1% to 2% higher than the FD interest rate.

d. Compare offers from different banks and choose the one with the lowest interest rate and favorable terms.

What happens to FD when interest rates increase?

When interest rates increase, new fixed deposits offer higher returns, but your existing FD continues to earn interest at the original locked-in rate. You would not automatically benefit from the hike unless you invest in a new FD or modify the existing one, which may involve penalties.

Is it advisable to break FD for higher interest rate?

Breaking your FD early may lead to penalties and loss of interest. Instead of losing returns, you can opt for a loan against FD. The loan against fixed deposit interest rate is usually just slightly higher than your deposit rate, helping you meet urgent needs without disturbing savings.

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