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Loan Against FD - HDFC Bank

Emergencies are unavoidable, and borrowing money against a fixed deposit is easy to receive cash when you need it fast. You can also get a loan against an FD rather than losing your entire investment or a portion of it.

You can choose to use an overdraft if you have a fixed deposit with HDFC Bank. This is borrowing against the FD facility. 

You can borrow up to 90% of the overdraft on your loan via the HDFC loan against the FD program. You are only required to return the loan in the amount you actually borrowed plus interest. Your FD's remaining balance continues to earn interest at the standard HDFC Bank rate.

What is a Loan Against FD HDFC Bank?

You can now complete several chores by taking out a loan against the fixed deposit you've created with HDFC Bank. The bank offers loans and overdrafts in exchange for your domestic, NRO, NRE, and FCNR fixed deposits. Flexibility, security, and guaranteed savings returns are all HDFC Fixed Deposits features.

Fixed deposits are financial instruments that allow you to invest for a certain period of time while receiving guaranteed returns. Compared to traditional savings accounts, they provide attractive returns.

Access to fixed deposits
of various banks
Invest without opening
a new bank account
Avail high interest rates
of up to 6.5%
OPEN FD ONLINE

Characteristics of a Loan Against an FD from HFDC Bank

  • The main benefit of a loan against FD is that when you take out one from HDFC Bank, you essentially take out a loan without breaking your FD. 
  • Following are some essential characteristics of a loan taken out against a fixed deposit:
  • You can immediately use 90% of the overdraft based on your fixed deposit.
  • You can qualify for a loan against FD with just a minimum deposit of 25,000 and a 6-month term in your FD.
  • If an FD is kept in a single name, this loan can be obtained quickly through net banking services.
  • Only the amount you borrow can be repaid with interest on the loan. 
  • You can continue to receive interest on the remaining portion of your FD.
  • The interest rate is kept low when you choose an HDFC Bank loan against an FD, allowing you to make payments without concern.
  • With convenient payback tenors available, you can freely set your repayment amount.

Who is Eligible for Loan Against Fixed Deposit HDFC?

The following qualifications must be met to apply for a loan against an HDFC Fixed Deposit:

  • Owners of NRO deposits may apply for a loan against FD.
  • Holders of fixed deposits in NRE and FCNR are also eligible.

What are the Benefits of the Loan Against FD in HDFC Bank?

By taking out a loan against your fixed deposit account opened with HDFC Bank, you can benefit from several advantages. The benefits are listed below:

  • Get loans against fixed deposits at enticing interest rates.
  • Enjoy increased funding. The bank provides loans or overdrafts against fixed deposits up to 90% of your deposit value.
  • It is possible to prematurely withdraw your deposit as long as it is still used to cover an open overdraft.
  • Without physically visiting the bank, you can apply for a loan against your HDFC Bank Fixed Deposit online.

Repayment of the Loan Against FD HDFC

  • Only the amount you have withdrawn may be repaid with interest; however, the balance of your fixed deposit will continue to earn interest.
  • You have the option to change the deposit's period, payment instructions, maturity, and rollover mode before the deposit matures.
  • You can link your fixed deposit to a current or savings account.
  • Through NetBanking, the facility against the fixed deposit may be canceled.

How Can I Apply for a Loan Against FD from HDFC?

  • Step 1: Visit the HDFC website -https://www.hdfcbank.com/personal/save/deposits/fixed-deposit
  • Step 2: Select "Invest" then "Deposits."
  • Step 3: Choose "Fixed Deposit" in step three.
  • Step 4: Select "Loan against fixed deposit."
  • Step 5: Select "Apply now."
  • Step 6: Log into the portal, complete the form, and submit it.

FAQs

Q1. Can I receive an overdraft on my HDFC Bank NRO deposit?

You may obtain an overdraft in exchange for the NRO deposit I have with HDFC Bank, yes.

Q2. In how long will I have to repay the loan that was borrowed against my FD from HDFC?

You will have to choose to repay the loan from HDFC Bank before the maturity of the fixed deposit, as this FD will play as the collateral for the loan that you had borrowed against.

Q3. What is the lowest deposit amount that I can take a loan over?

Yes, for a period of six months and one day, you must deposit a minimum of Rs. 25,000.

Q4. How much may I borrow against my fixed deposit?

You are eligible for a loan equal to up to 90% of your fixed deposit.

Q5. Does HDFC Bank accept applications for loans secured by fixed deposits submitted online?

Yes. You could also apply for a loan against fixed deposits online with HDFC Bank.

Q6. Will I be able to receive a loan against my NRE deposit if I put in an NRE deposit with HDFC?

Yes, you can get a loan secured by your NRE deposit.

Q7. Can I receive an overdraft on my HDFC Bank NRO deposit?

You may obtain an overdraft in exchange for the NRO deposit I have with HDFC Bank, yes.

Q8. Who may submit a loan against a fixed deposit application?

  • Permanent Residents
  • Hindu undivided Families
  • Public and private limited enterprises

Comparison of FD rates

Name
Tenure
Highest Interest Rates
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