Loan against all types of Fixed / Term Deposits

Now you can use your all types of Fixed / Term Deposits to fulfill your financial requirements without having to liquidate it in an hour of need, against the security of your deposits:

(In order to access funds at a short interval, one can avail a loan against fixed deposits held with the bank. While liquidating a deposit prematurely may involve penal charges, personal loans have higher interest rates as they are unsecured. The advantage of taking a loan against fixed deposits is that interest rates on these are usually lower than personal loans since they are secured by the underlying deposit.)

The facility enables you to:
  • Get access to funds up to 85% of the value of your FD;
  • Loan or overdraft facility Can be availed for self and third party (Subject to RBI guidelines)
  • Interest charged only on the Amount utilized and for the tenure of utilization;
  • Loan/Overdraft facility tenure will be up to the remaining tenure of the underlying FD;
Features & Benefits:
  • Facility available only against Our Bank’s all types of Fixed / Term Deposits
  • Facility available up to remaining tenure of the all types of Fixed / Term Deposits on renewable basis ;
  • Interest charged on actual amount utilized- no EMI or post dated cheques required;
  • Facility up to 85% of the value of Term Deposit;
  • No pre payment charges;
Interest Rate Charged:
  • 2% over term deposit rate;
  • Loans to Third party customers - 3% over term deposit rate irrespective of the amount;
  • No charges other than Interest Rate are applicable
Documentation :

  • Duly filled Application form;
  • Duly signed Agreement;
  • Fixed/Term Deposit receipts duly discharged in favour of the Bank;
No Penalty for early closure.

Other Conditions:

  • Bank reserves the right to reject any application / renewal without assigning reasons thereof. It shall be the sole right of the Bank to consider the proposal on case to case basis after taking into consideration, the credentials/credit worthiness of each of the customers;
  • The overdraft facility shall be renewed only after all the required documentation and lien marking formalities are complete;
  • The applicant will undertake to inform the Bank as and when there is a change in address or employment;
The terms and conditions mentioned above and elsewhere under the scheme are subject to modification from time to time solely at Bank's discretion.