If money is needed in corona crisis, then take loan on FD, know important things

During the Corona period, millions of families have had to face economic crisis. During this, a large number of people lost their jobs, while business has also been affected. Most people choose to end their aphid when the economic situation worsens, but should be avoided. Saving comes in handy during difficult times.

Money can also be arranged without eliminating FD. You can take a loan on FD. Banks give 90% to 95% of the amount deposited in FD as a loan. Apart from this, there is also the benefit of overdraft limit on FD. Banks can give you the benefit of overdraft limit equal to 90% of the deposit amount.

Secured loan
A loan taken on FD is a type of secured loan. The customer has to declare in front of the bank that for the return of the loan, the amount of his FD will remain with the bank in the form of collateral.

Who can take loan on FD?

  • Those who have salary, business or any other type of savings account.
  • Whether FD is a person or a joint person, any person who does FD can take this loan.
  • Those with a good credit score can get a loan but this is not a mandatory condition.

Who can not take this loan?

  • Loan cannot be taken in the name of any minor person.
  • Depositors depositing funds in a tax saving fixed deposit of 5 years duration also cannot take this loan.

How much interest do you think?

  • Interest is to be paid on the same amount as the loan.
  • This interest is more than the interest on FD.
  • You do not have to pay any processing fee for taking a loan on FD.
  • Loans taken on FD usually attract 2% more interest than the FD rate.
  • SBI charges 1% more than the interest paid on FD.

Also read: Be careful while buying insurance, keep these things in mind to avoid fraud


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