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Loan Against FD - Yes Bank

Unforeseen circumstances bring the need for sudden financial emergencies. Financial emergencies tend to make people want to break off their savings, and one such saving is a fixed deposit.

For these and several other reasons - YES bank offers its fixed deposit holders a loan against FD YES Bank.

What is the YES Bank Loan Against FD Interest Rates?

YES Bank's Fixed Deposit (FD) plan offers several advantages. This scheme guarantees financial growth over time and provides instant assistance in times of need. In addition, customers of YES Bank can obtain a loan against a fixed deposit.

There is no requirement to break your FD in this manner to get liquid funds.

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 the Loan Against FD from YES Bank

  • YES Bank gives their FD customers a loan against the FD of up to 90% of the balance in their Fixed deposit account.
  • There are no processing fees charged for applying for this loan.
  • You could also pay the entire amount in a lump sum, and there will be no requirement for the payment of EMIs.
  • In addition, there is no requirement for any additional documentation.
  • The applicable interest rate is 1% more than the Yes Bank FD rate.

Eligibility for a Loan Against FD from YES Bank

  • Customers that are non-residents and have A SINGLE NRO savings account.
  • A minimum fixed deposit of INR 10,000 and a maximum of INR 2 crore (at Cust ID) for a minimum duration of 30 days for NRO deposits and 12 months for NRE deposits.
  • There should be no liens on fixed deposits.
  • The residual duration of a fixed deposit should be at least seven days.

How Can I Apply for a Loan Against FD from YES Bank Online

Here is the step-by-step process to apply for a loan against a fixed deposit:

  • Step 1: Access the portal.
  • Step 2: Select an appropriate fixed deposit.
  • Step 3: Determine the appropriate amount.
  • Step 4: Submit.

Or

  • Step 1: Go to the portal and select 'Exclusive Offers.'
  • Step 2: Select an appropriate fixed deposit.
  • Step 3: Determine the appropriate amount.
  • Step 4: Submit.

Or

  • Step 1: Dial +91 829-120-1200 and enter the code 'FDOD.'
  • Step 2: Select an appropriate fixed deposit.
  • Step 3: Determine the appropriate amount.
  • Step 4: Send.

How Can I Apply for a Loan Against Fixed Deposit from Kotak Mahindra Bank Offline?

You will have to go to the nearest Kotak Mahindra Bank and speak to the Bank's executive with all of the FD details from Kotak Mahindra Bank. With the receipt of your FD, you can avail yourself of up to 90% of the value in it as a loan. 

Benefits in Opting for the Loan Against YES Bank Fixed Deposit

There are several benefits of choosing the loan against FD:

  • Processing Fee: The interest rate levied by the Bank on a loan against the fixed deposit is typically 1% more than the interest rate paid by the Bank on the deposit. This, however, varies from Bank to Bank.
  • Tenure: The Bank's maximum loan tenure for a loan against a fixed deposit is the length of the deposit itself. The repayment schedule for this loan may be similar to that of a home loan, with EMIs due regularly or as determined by the lender.
  • Lower Rates: The interest rates charged on loans against fixed deposits are much lower than what would usually incur on personal loans and more. Therefore, it is wiser to choose to take loans against FDs.
  • Flexibility: It is much easier to repay a loan against a fixed deposit because it is more flexible, it can either be paid through EMIs, or it could be repaid through a lump sum amount (except the loan needs to be paid before the maturity of the fixed deposit in Kotak Mahindra Bank.)
  • Easy Approval: Since the fixed deposit will be approved to you through the fixed deposit being collateral, the loan will be easily approved.
  • No Need to Break the FD: When there is a requirement for sudden finances, there will be no need to break the Fixed deposit. So, the fixed deposit will keep earning interest over the principal, and you will still have money for the financial emergency,

FAQs

Q1. Is there any additional benefit for senior persons with a YES Bank FD?

Senior citizens in India might receive an additional 0.50 per cent interest bonus.

Q2. How long may a YES Bank fixed deposit be held for?

YES Bank fixed deposits have a maximum duration of 10 years.

Q3. What is the minimum investment for a YES Bank fixed deposit?

To open an FD with YES Bank, you must invest a minimum of Rs.1000.

Q4. What is the required minimum deposit to obtain a loan against a fixed deposit?

A loan against a fixed deposit at YES Bank requires a minimum deposit of Rs.10,000.

Q5. Can I apply for a YES Bank FD online?

Yes, you can open a YES Bank FD using Net Banking, Phone Banking, YES Robot, and YES Mobile.

Q6. Is it better to take a personal loan or to take a loan against my FD?

The better choice is to take a loan against your Fixed deposit since the interest is low, the tenure is flexible, and it is much more reasonable.

Q7. Is there a foreclosure penalty for the loan against FD from Kotak Mahindra Bank?

No. There are no charges or penalties; you can close it whenever you want.

Comparison of FD rates

Name
Tenure
Highest Interest Rates
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