State Bank of India or SBI, country's largest bank on basis of its assets, offers loan against fixed deposit (FD) account at lower interest rates than those charged on normal loans, according to lender's official website- sbi.co.in. Under this facility, SBI allows availing of loan without breaking the FD account. Customers holding fixed deposit (FD) or special fixed deposit account with SBI can avail the facility online or by visiting the branch. The online facility is, however, restricted to only overdraft facility. For availing demand loan customers need to visit the branch, mentioned SBI on its website.
Given below are key things to know about SBI loan against fixed deposit (FD):
How to avail the facility
Customers can visit SBI's internet banking website - onlinesbi.com and log in using his/her user id and password. Overdraft against fixed deposit (FD) is available under e-fixed deposit tab. Alternatively, customer can approach the branch for availing the facility, noted SBI.
Amount of loan
The minimum loan amount for availing online overdraft against fixed deposit (FD) 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's website.
Under SBI's loan against fixed deposit (FD), 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.
Interest rate and processing fees
Under this facility, interest rate of 1 per cent above the relative fixed deposit is applicable. SBI charges zero processing charges for providing loan against fixed deposit (FD).
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's website.
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