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).

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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.

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-- In case of joint holders of the FD, all applicants need to sign the loan request.