Loan Against FD: Loan can be easily availed even on bad credit score, interest rate will be lower than personal loan...

Loan Against FD: We often take loans when any financial emergency arises in our lives. In such a situation, if your credit score is low then you may face difficulties in getting a loan.

However, now you do not need to worry much. Almost every middle-class family in our country has some fixed deposit (FD). You can easily take a loan from the bank against your FD even if you have bad credit. It is not necessary that you cannot take a loan until your FD matures, you can easily take a loan before your FD matures.

How much interest has to be paid?
You may have to pay a higher interest rate on a loan against FD. This interest rate is 1 percent to 2 percent higher than the interest rate on your FD, which you can repay for a period of up to 60 months. These loans are generally in the form of overdraft or demand loans.

Which bank charges how much interest?
SBI:- SBI charges you 1 percent more interest for a loan against FD than the interest rate available on your FD. This is the interest rate for the overdraft facility. You can take this loan through internet banking, YONO, or by visiting the branch.

According to SBI, you can take a loan up to 95 percent of the value of your FD. The minimum loan amount (for online overdraft against FD) is Rs 5000 and the maximum amount (for online overdraft against FD) is Rs 5 crore.

PNB:- PNB charges you 0.75 percent more interest for general citizens than the interest rate on your FD for online overdraft against FD. This is the interest rate for the overdraft facility.

At the same time, PN will not charge its staff and ex-staff any extra charge for online overdraft against FD of Rs 10 lakh, they will get the money at the interest rate of their FD, however, if the loan amount is more than Rs 10 lakh, then the bank will again charge its And for online overdraft against FD for more than Rs 10 lakh to ex-staff, interest rate will be higher than the interest rate on FD.

Bank of Baroda:- Bank of Baroda charges you 1 percent more interest than the interest rate on your FD for a loan on FD. This is the interest rate for the overdraft facility.

HDFC Bank:- HDFC Bank charges you 2 percent more interest for a loan against FD than the interest rate available on your FD. This is the interest rate for the overdraft facility.

Axis Bank:- Axis Bank charges you 2 percent more interest for a loan against FD than the interest rate on your FD. This is the interest rate for the overdraft facility.

What are the benefits of taking a loan against FD?
Loan is available even on bad credit history.
Interest rates are lower than personal loans.
Interest is charged only for the actual amount utilized and period of usage
There is no preclosure charge