Should you Opt for a Loan Against Fixed Deposit?

Posted by samratsaini on July 5th, 2019

Fixed deposits are one of the preferred investment options in India because of its minimum risk and high yield. These policies offer several investor-friendly features and benefits like flexible tenors, high-interest rates and the provision to take an emergency loan against the invested amount during emergencies.

Loan against fixed deposit is a great method to avail essential funds without liquidating your investment. Stable financial backing is of tremendous importance to meet an unforeseen incident, and such credits can offer the necessary monetary boost to overcome any hurdle.

The simple process of how to get a loan against fixed deposit and its convenience makes it suitable for everyone. You can gain access to short-term funds quickly while your FD continues to accumulate interest. You also save a substantial portion of any interest paid on credit, which makes a loan against fixed deposit popular amongst both seasonal and new investors.

There are several other reasons why you should opt for a loan against FD. Here are some of them.

1. Large Loan Amount –
   You can avail a large amount of money against such a credit. Companies like Bajaj Finance offers up to 75% of the total invested amount for cumulative and up to 60% as non-cumulative Fixed Deposits. It is one of the most beneficial factors you should know if you are looking for how to get a loan against FD.
   
   
2. Minimum Interest Rate –
   A loan against FD is issued against your invested amount, which acts as collateral against the credit. That’s why these loans have affordable interest rate compared to other forms of short-term credits.
   
   
3. Quick and Easy Application Process –
   As an existing account holder, you do not require any additional documentation when you look for how to get a loan against fixed deposit and apply. Such a quick and hassle-free application process makes it suitable for any emergency situation.
   
   
4. Quick Eligibility –
   You can avail a loan against FD any time after the first 90 days of your investment. Also, you only have to submit some essential documents like ECS mandate, a cancelled cheque, and your FD receipt to successfully apply for the credit.
   
   
5. Transparent Policies –
   Bajaj Finance maintains a transparent policy with zero hidden charges to ensure a seamless and hassle-free process. You can also part or full pre-pay the loan with no additional charges.
   Loan against an FD brings the convenience and features of a secured credit with benefits of a short-term loan. It is the ideal financial product for fixed deposit holder.