The State Bank of India, inarguably the largest public sector bank in the country, offers its customers all types of loans, including loans against FDs. Loans are required for different needs such as education, vehicles, home, and more.
With regards to this, SBI gives loans to its customers according to their fixed deposits without them having to break the Fixed Deposit. The initiative is beneficial for those looking to get a loan as the interest rate is lower when compared to other kinds of loans in the financial sector.
The Loan Against FD SBI is a demand or overdraft loan given to clients who already have fixed deposits in the State Bank of India.
In fact, the loan amount has been approved based on their FD amounts. However - you do not have to break your FD to get the loan. It is mainly constructed to assist meet almost all of the financial needs or urgency regarding home construction, education, renovation, vehicle purchase, and more.
Also, check - SBI FD interest rates 2022
In order to better understand the loan against FD SBI and how it works:
1) Purpose of the Loan |
The loan against SBI FD is offered to assist its customers in meeting any of their financial needs. |
2) The Amount of Loan |
The loan amount is limited to 90% of the FD amount. |
3) The Repayment of the Tenure |
SBI lets the borrowers repay the loan within a flexible tenure, ranging from 3 to 5 years. However, the repayment of the loan repayment tenure is decided on numerous determinants, which are inclusive of the loan amount and the borrower's repayment capacity. |
4) Loan Against FD SBI Interest Rate |
The interest rate is 1% more than the fixed deposit rate for the loans on FD of SBI. |
Here are some of the benefits of taking a loan against the FD from the State Bank of India:
In order to avoid any issues during the application for loans against FD SBI, the eligibility criteria are:
There are online and offline modes of application available for the loan on FD SBI. However, you need to have a loan or an overdraft account with the State Bank of India to opt for this facility.
Q1. How do I use the online service?
By going to onlinesbi.com and logging into internet banking with the username and password. The e-Fixed Deposit tab has information about it.
Q2. Can a fixed deposit be used as collateral for my loan?
Customers are permitted to foreclose on their debt by many banks and NBFCs. You can make the repayment and avoid paying additional fees in the form of interest rates if you have enough money to pay off the loan before the term is up. You should be aware, nonetheless, that in this situation, most banks and NBFCs levy foreclosure fees in specific circumstances.
Q3. Is a loan secured by FD a wise move?
A loan against FD SBI offers to be a reliable and good option to choose from when it is paying your bills because of the loans' competitively low-interest rates, flexible prepayment options, and loans granted at up to 90% of the fixed deposit account.
Q4. When using the SBI branch, is there a maximum amount that can be used?
No, when a borrower applies through a bank, there is no upper restriction on the total loan amount that can be obtained.
Q5. Are NRIs eligible for fixed deposit loans?
As long as their fixed deposit accounts are active, individuals are eligible for and may obtain loans.