Are you a State Bank of India (SBI) account holder? If yes, then you can easily avail a loan against fixed deposit (FD) account in case they need an emergency funds. If you are not a SBI account holder, then you should consider becoming one. Country’s largest lender, SBI provides this facility to the customers, in which they can avail a loan against their FD without breaking their FD account, according to sbi.co.in. The customers who have a fixed deposit or special fixed deposit account with SBI under single name can avail this facility online. While the joint account holders can avail this facility at SBI branches only. However, the online service only provides the overdraft facility, while the customers can avail demand loans at branches without any issues.
Here are all the key details about SBI loan against fixed deposit, that you must know:
How to apply for SBI loan against FD
In order to apply for a loan against FD, the customers are required to visit SBI’s website- onlinesbi.com and log in using id and password. To avail for the overdraft against FD, one can visit the options given under e-fixed deposit tab on website- onlinesbi.com While for a demand loans, the customer can visit the branch for availing other facilities for loan against FD.
Minimum and maximum loan amount
The customers can get a minimum loan amount against their fixed deposits in the form of an overdraft facility is Rs 25,000. While the maximum overdraft limit which can be availed online against fixed deposit is Rs 5 crore. However, there is no specific loan limit for advances at the branches, according to SBI website.
A customer can avail 90 per cent of his/her special fixed total deposit value and 75 per cent of his/her fixed deposit as overdraft facility online. However, the customer can avail 90 per cent of underlying security value as demand loan or overdraft facility at branch.
Interest rate applicable on loan
The loan will have an interest rate of 1% above the rate applicable on your FD. Also there will be no processing charges for providing SBI loan against FD.
Loan repayment details
The customers can set a suitable repayment schedule at branches, depending upon the repayment capacity of the borrower for loan taken through branches. A maximum repayment period of 5 years is fixed for a overdraft loan against special fixed deposit accounts. While in case of a overdraft loan against fixed deposit accounts, 3 years of a repayment period is fixed according to SBI web portal.