Loan against FD: Loan against FD is easily given by the bank. We are going to tell about its terms and conditions in this article.
Borrowing against FD pledge is one of the easiest ways to take a loan. Its best advantage is that even if you have no credit history or your credit score is bad, you can easily get a loan. But before taking loan against FD mortgage, some things must be kept in mind.
Rate of interest
Loan is easily given by the bank by pledging the FD. Loans on FD range from 0.75 percent to 2 percent are given by most of the banks. If any bank is giving loan on FD at higher interest than this, then you can go to another bank and apply.
Loan amount
The bank’s risk in giving loan against FD pledge is very less. For this reason, most banks offer loans up to 85 percent of the FD amount. For this reason, you should try that the bank gives you loan against maximum FD amount.
Guarantor
FD loan is a secured loan. Because of this no guarantor of any kind is required. Because of this, FD loan is available faster than personal loan, car loan and home loan.
Loan processing
All banks have different policies regarding FD loan. For this reason, while taking a loan, one should always give preference to banks with low loan processing fees or zero processing fees.
Repayment
Like other loans, here also you should read the terms and conditions. Repayment should always be before the maturity period of the FD. No charge of any kind should be taken by the bank during early repayment.
