Benefits of Taking a Loan Against Fixed Deposit!

Some of the banks that allow you to apply for such loans online through their websites include HDFC Bank, State Bank of India, Axis Bank, and Deutsche Bank.

However, in the case of Federal Bank, you will have to visit the nearest branch to apply for such a loan.

Eligibility criteria

Resident Indian citizens Hindu Undivided Family (HUF) Clubs, societies, and associations Family Trusts Group companies, sole proprietorships, and partnership firms

Features and Benefits

Such loans typically have interest rates that are 2 to 2.5 percent lower than personal loans. Consequently, the EMIs on these loans are more affordable.

People with low or no credit scores can benefit from such loans as they are not required to have a high credit score to be eligible.

In the case of a loan against a fixed deposit, banks do not charge a penalty since they do not lose out on the interest amount.

For a loan against FD, the maximum amount of the loan is decided by the amount you have deposited in your FD account.

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