Who is eligible for an SBI Loan Against FD?

Any individual who has an active fixed deposit with SBI can apply for a loan against their SBI fixed deposit account.

What is the maximum loan amount that we can get for SBI Loan on FD?

The maximum loan amount for Loan Against FD by SBI is up to 90% of the fixed deposit value.

Is a loan on SBI FD a secure option?

A loan against FD SBI is a reliable and good option to choose from due to its competitively low-interest rates, flexible prepayment options, and loans granted at up to 90% of the fixed deposit account.

Can I apply for an SBI Loan Against FD online?

Yes, you can apply for loan on FD SBI online through the SBI official website or through your net banking account.

Are NRIs eligible for fixed deposit loans?

Yes, NRIs are eligible for fixed deposit loans from SBI as long as they have an active fixed deposit accounts.

Loan Against FD - SBI

The State Bank of India offers its customers with loan against their fixed deposits. The loan against FD by SBI is a demand or overdraft loan given to clients who already have fixed deposits in the SBI. It is mainly constructed to help customers meet their financial needs regarding home construction, education, renovation, vehicle purchase, etc.

This allows customers to take loan against the existing FD as collateral. One can get loan amount upto 90% of the principal FD amount while applying for SBI loan against FD. The initiative is beneficial for those looking to get a loan at lower interest rate as compared to loans offered by other financial institutions.

Features of Loan Against FD SBI

The table below shows the major features of SBI loan against fixed deposits that one must consider before applying:

Loan on SBI FD - Key Features
Criterias	Descriptions
Purpose of the Loan	The loan against SBI FD is offered to assist its customers in meeting any of their financial needs.
Loan Amount	The loan amount is limited to 90% of the FD amount.
Repayment 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.
Loan Against FD SBI Interest Rate	The interest rate is 1% more than the fixed deposit rate for the loans on FD of SBI.

Benefits of Loan Against FD from SBI

Here are some of the benefits of taking a loan against FD from the State Bank of India:

SBI offers loans up to 90% of the total value of the term deposit.
SBI offers both demand and overdraft loans that can be availed according to the needs of an individual.
The minimum loan amount is Rs. 25k in the case of an online overdraft loan against SBI FD - while the maximum amount is Rs. 5 crore. But, you cannot exceed more than 90% of the amount in one's SBI term deposit.
No processing charge will be imposed on the individuals who have SBI loans against FD.
The security interest is given to the FDs. It makes the loan repayment incredibly simple. Even after the loan repayment tenure, the borrower can earn interest on the existing FD which they can utilize to pay their loan EMIs.
The repayment period for State Bank of India loan against FD is determined majorly by the individual's repayment capacity. The maximum repayment tenure ranges from 3 years to 5 years.

Also, check - SBI FD interest rates

Eligibility for Loan Against FD of SBI

One must meet the following the eligibility criteria while applying for loans against FD SBI:

The applicant must have a SBI Fixed Deposit account.
The applicant should be 21 years of age.
The applicant's FD, which is being used as collateral for the loan should not cross the maturity period.
Individual customers of SBI Bank who have TDR, e-TDR, STDR, or e-STDR are eligible to use this facility.
This loan is also available to customers who have registered with SBI for RD/e-RD/RFC/NRE/FCNR (B) deposits.
Businesses are able to use this service if they are a sole proprietorship or partnership firm.

How to Apply for SBI Loan Against FD?

One need to have a loan account or an overdraft account with the State Bank of India to opt for loan against fixed deposit from SBI. Below are the steps that must be followed to apply for SBI Loan Against FD:

Step 1: You will have to sign in to your State Bank of India net banking account with the user ID and password.
Step 2: You will have to go to the menu section and tap on the e-fixed deposit option.
Step 3: Choose the overdraft against the Fixed Deposit option from the displayed menu.
Step 4: Once you have chosen it, you can view the active deposits on the screen. You will have to choose the FD against which you wish to apply for the overdraft.
Step 5: Choose the proceed button and then confirm the overdraft amount with the interest rate applicable on the overdraft as well as the expiry date.
Step 6: Now, you will get a security password on the registered phone number, you will have to authenticate it by entering it in the needed field, and your account will be activated.