Can I apply for a loan against fixed deposit?
If you have invested in fixed deposit, then the investment amount of FD will mature over a long tenor and within this time period you will earn interest. But, within this period, your money will be locked and you will not be able to withdraw it. However, you may encounter various situations and emergencies such as a wedding in the family, emergency hospitalization of your spouse, or financing your child’s higher education needs. These situations will raise the need of finances urgently.
So, how will you manage the issues? If you prematurely withdraw the FD, you will have to bear some losses. And, if you apply for an unsecured loan, you will have to pay high interest to the bank. Instead, it will be better to meet your needs with the help of a loan against FDs to fund your immediate and urgent requirements.
Here you need to keep your fixed deposit as collateral with the lender and get a loan approval to meet a short and long term needs and requirements. This will help you to tackle your finances easily without even tampering your investment and savings.
The other benefits that you can enjoy from loan against FD are:
Low interest rate
The rate of interest of a loan against FD is generally 2% to 2.5% above the interest paid on the deposit. This may differ from one financial institution to another. But, make sure, that your lender is not asking for any other charges apart from your interest rate. Even the rate of interest of a loan against FD is much lower than that of an unsecured personal loan.
You should be aware of other factors too regarding loan against FD.
Know about Investment Option in Bhubaneswar
So, how will you manage the issues? If you prematurely withdraw the FD, you will have to bear some losses. And, if you apply for an unsecured loan, you will have to pay high interest to the bank. Instead, it will be better to meet your needs with the help of a loan against FDs to fund your immediate and urgent requirements.
Here you need to keep your fixed deposit as collateral with the lender and get a loan approval to meet a short and long term needs and requirements. This will help you to tackle your finances easily without even tampering your investment and savings.
The other benefits that you can enjoy from loan against FD are:
Low interest rate
The rate of interest of a loan against FD is generally 2% to 2.5% above the interest paid on the deposit. This may differ from one financial institution to another. But, make sure, that your lender is not asking for any other charges apart from your interest rate. Even the rate of interest of a loan against FD is much lower than that of an unsecured personal loan.
You should be aware of other factors too regarding loan against FD.
Know about Investment Option in Bhubaneswar
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