Most banks that operate in the country offer the option of getting a loan against your FD. Given that the loan against the term deposit could be availed at a low-interest rate and will also prevent you from breaking the fixed deposit, it makes a good choice. It will assist you in saving both time and also money.
This loan assists borrowers in obtaining money to cover their immediate financial demands, such as weddings, travel, and other expenses, in exchange for fixed deposits (FDs).
To pay off their high-interest loans and credit card debts and consolidate their debts, this plan can also be used as a consolidation loan.
When there is an urgent need for money, the first thing that comes to mind is breaking fixed deposits. However, the option is not a good one. Instead, the FD account holders can get a loan against the FD without having to break the savings scheme. The bank has the right to ask the customer to make up any gap if the minimum margin of the Fixed Deposit decreases in any way after the loan has been approved.
Additionally, the bank may at any moment liquidate your fixed deposit to cover the loss if you are unable to repay the outstanding amount of the loan.
Loan Against Fixed Deposit in Punjab National Bank is a feature that the bank offers, and it has the following characteristics:
Also, check - PNB FD Interest Rates
You may apply for a loan against the fixed deposit account you've opened with Punjab National Bank by:
For loans against term deposits, the maximum loan length is three years, or the residual period, whichever is less.
The steps listed below must be followed if you want to apply for a loan against an FD account you opened with PNB:
Q1. Is the loan over the Punjab National Bank fixed deposit the same as a personal loan?
No, the Punjab National Bank loan against FD is when the bank will give you a loan based on your FD holding and 90% of the entire value of the FD that you hold with the bank. A personal loan, on the other hand - will not require any collateral. Instead, it will be based on your application and various other factors.
Q2. Does the loan against fixed deposit Punjab National Bank a better option than a personal loan?
The loan against a Fixed deposit from the Punjab National Bank is a better option than a personal loan because of the below-mentioned reasons:
Q3. What is the tenure of the repayment of a loan against my fixed deposit from the Punjab National Bank?
The maximum tenure that you can take a loan against your FD is a period of 3 years.
Q4. How much of the FD value can I take out as a loan?
You can avail yourself up to 90% of the fixed deposit's value and not more than that.
Q5. What do I have to do to get a loan against my FD from Punjab National Bank?
You can do it offline through the bank, or you could do it online through the bank's portal.