Covid-19: Loan against FD (Fixed Deposit)
Many people are facing a financial problems as the corona crisis has stopped their income because of job loss or business closure. There are many whose salary has reduced or have faced loss from business income because of frequent lockdown.
So, if you are also facing a money problem, you can solve it by taking a loan on fixed deposits (FD) during Coronavirus crisis. There are many banks which are lending at less than 6% interest on FD which is much lower than personal loan interest rate typically in the range of 14%-18%.
So here are the banks offering personal loans against FD along with the interest rate.
How much interest will you pay?
If you take a loan on an FD, you will have to pay 1-2% more interest than the interest received on fixed deposits. For example, if you are getting 4% interest on your FD, you can get a loan at 6% interest rate.
How much loan amount will you get?
You can take a loan up to 90% of the value of FD. Suppose your FD costs Rs. 1.5 lakhs, you can get a loan of Rs. 1,35,000.
How to get a loan?
Many banks, including the country’s largest bank SBI, also offer online facility for the same. You can also go to the bank and take a loan. This loan is a secured loan so this loan is easily available.
Listed in the below table are few of the banks in India offering loan against FD along with the interest rate and maximum loan amount:
|Lender||Interest Rate||Maximum Loan Amount|
|State Bank of India||FD Rate + 1%||90% of the FD amount|
|Punjab National Bank||FD Rate + 1%||95% of the FD amount|
|Axis Bank||FD Rate + 2%||85% of the FD amount|
|HDFC Bank||FD Rate + 2%||90% of the FD amount|
|Bank of Baroda||FD Rate + 2%||90% of the FD amount|
|Indian Bank||FD Rate + 2%||90% of the FD amount|
|ICICI Bank||FD Rate + 2-3%||90% of the FD amount|
I am Nikesh Mehta, owner and writer of this site.
I’m an analytics and digital marketing professional and also love writing on finance and technology industry during my spare time. I’ve done online course in Financial Markets and Investment Strategy from Indian School of Business. I can be reached at [email protected] or LinkedIn profile.