How To Avail SBI Loan Against Fixed Deposit (FD)

State Bank of India or SBI customers can avail loan against fixed deposit (FD) account without breaking their FD account, according to lender's website- sbi.co.in. Individual customers holding fixed deposit (FD) or special fixed deposit account with SBI in single name can avail this facility online. Joint account holders can avail this facility at SBI branches. The online facility is, however, restricted to only overdraft facility. At branches, customers can avail demand loan, the lender said. Security lien is available on underlying fixed deposit.

Here are key things to know about SBI loan against fixed deposit (FD):

How to avail SBI loan against FD

Customers are required to visit SBI's website- onlinesbi.com and log in using id and password. Overdraft against FD is available under e-fixed deposit tab. Alternatively customer can also approach the branch for availing the facility.

Loan amount

The minimum loan amount for availing online overdraft facility is Rs 25,000. The maximum overdraft limit which can be availed online against fixed deposit is Rs. 5 crore. There is no specific loan limit for advances at the branches, according to SBI.

Interest rate and charges

Interest rate of 1 per cent above the relative FD is applicable. SBI charges zero processing charges for providing loan against FD. 

Margin

Under SBI's loan against fixed deposit (FD), a customer can avail 90 per cent of his/her special fixed deposit value and 75 per cent of his/her fixed deposit as overdraft facility online. At branch level, the customer can avail 90 per cent of underlying security value as demand loan or overdraft facility.

Repayment period

Suitable repayment schedule is fixed depending upon the repayment capacity of the borrower for loan taken through branches. Maximum repayment period has been capped at 5 years against special fixed deposit accounts and 3 years against fixed deposit accounts respectively for overdraft availed online, according to SBI.