loan against fixed deposit hdfc bank interest rate

The EMI amount is calculated based on the loan amount, interest rate, and tenure of the loan. Repayment: The repayment of the loan against FD is generally done in EMIs (Equated Monthly Installments). The individual needs to submit the fixed deposit receipt, a loan application form, and identity and address proof documents.Īlso Read: How to invest your annual bonus wisely? ĭocumentation: The documentation required for availing a loan against FD is minimal. Generally, the individual should be a resident of India and have a fixed deposit with the bank. It can range from 7 days to 5 years, depending on the bank and the terms and conditions of the loan.Įligibility: The eligibility criteria for availing a loan against FD may vary from bank to bank. Tenure: The tenure of the loan is generally shorter than the tenure of the fixed deposit. The interest rate may range from 1% to 2% higher than the interest rate offered on the FD. Interest rate: The interest rate charged on the loan against FD is generally lower than that of other loans such as personal loans or credit card loans.

The bank already has the collateral in the form of the fixed deposit, so there is no need for extensive documentation or verification of income.”Īlso Read: EPF higher contribution to PPF, NPS: 6 things to do after salary hike Paradigm shifts in geo-politics reshaping Indian real estateĪdhil Shetty, CEO,, says, “Since the loan is secured against the fixed deposit, the approval process for a loan against FD is generally quick and easy.

Loan against fixed deposit hdfc bank interest rate