SBI loans against Fixed Deposits: What are the benefits and how to avail them? Explained in brief
SBI loans against Fixed Deposits: If you are in an urgent need of money and are running out of resources, this particular facility can be of great help to you. State Bank of India provides the facility to avail a loan against your Fixed Deposits
SBI loans against Fixed Deposits: If you are in an urgent need of money and are running out of resources, this particular facility can be of great help to you. State Bank of India (SBI) provides the facility to avail a loan against your Fixed Deposits (FD).
Liquidating your FD before term is not a profitable decision as you lose out on the interest and also end up paying a penalty amount. Once the FD is liquidated, the bank pays interest at a rate that is lower among the rates at which the FD was approved and the rate of interest on the day of liquidation. But, getting a loan against the FD is a good option as it ensures that the benefits you derive from the FD account stay intact, and offers the loan at a comparatively lower rate of interest.
Benefits of SBI Loan Against Fixed Deposit
-- You are entitled to avail a loan of up to 90% of the value of your fixed deposit.
-- Low interest rates
-- Interest is charged on a daily reducing balance
-- Both demand loan and overdraft facility is available according to the account holder’s requirement
-- No processing fee charged for availing this loan facility
-- No penalty charged if the beneficiary pays the complete loan amount in advance
How to apply for SBI’s Loan Against Fixed Deposit
-- SBI loan against the fixed deposit can be applied for, by logging in to your internet banking profile and applying for the loan through the Overdraft against FD link under the e-Fixed Deposit tab.
-- Visiting the bank and applying for the overdraft on the spot.
See Zee Business Live TV Streaming Below:
-- In case of joint holders of the FD, all applicants need to sign the loan request.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Retirement Planning: SIP+SWP combination; Rs 15,000 monthly SIP for 25 years and then Rs 1,52,000 monthly income for 30 years
Top Gold ETF vs Top Large Cap Mutual Fund 10-year Return Calculator: Which has given higher return on Rs 11 lakh investment; see calculations
Retirement Calculator: 40 years of age, Rs 50,000 monthly expenses; what should be retirement corpus and monthly investment
SBI 444-day FD vs Union Bank of India 333-day FD: Know maturity amount on Rs 4 lakh and Rs 8 lakh investments for general and senior citizens
Home loan EMI vs Mutual Fund SIP Calculator: Rs 70 lakh home loan EMI for 20 years or SIP equal to EMI for 10 years; which can be easier route to buy home; know maths
10:29 AM IST