Loan against Deposit

Loan against Deposit

Loan against FD (Fixed Deposit) is a type of secured loan where customers can pledge their fixed deposit as security and get a loan in return. The amount of loan depends on the FD deposit amount.

During a cash crunch situation or financial emergency, people usually tend to look for funding options like loans and other lending prospects. One of those vital sources is considered as taking loans against your fixed deposits (FD). This is a time-efficient way of getting a short-term loan from financial institutions. The amount of the loan depends on the FD deposit amount. This can go up to 90% – 95% of the deposit amount. Loan against fixed deposits is extended to all the fixed deposit holders, be it individual holders or those with joint accounts. Some reasons to opt for loans against deposit is the lower interest rates compared to other types of loans, no need to break the FD or go for premature withdrawal and very low processing fees.