How to apply for a loan against SBI FD?


Eligibility required for SBI loan against FD

To apply for a loan, you must meet the following eligibility criteria:

  • This loan can be used by single or joint depositors with SBI fixed deposits.
  • Through online banking against their TDR and STDR, single account holders can also benefit from an overdraft facility. For depositors who need to open an overdrawn account, this can easily be done electronically.
  • Before the request is approved by the bank, the primary and secondary cardholders must accept the loan request in case of joint owners.
  • In the event that one of the holders has not signed the loan application form, the bank will reject the request and the loan will not be processed.
  • You are not eligible to apply for a loan if you have an SBI Tax Saving Fixed Deposit account.
Repayment period

Repayment period

The repayment term is the length of time during which, along with the accrued interest, the loan balance must be repaid to the bank. In order to avoid the fine for late payment, the bank recommends to the borrower an acceptable repayment period within which he must repay. After carefully assessing the creditworthiness of the borrower, this period / schedule is introduced. In the case of STDR / e-STDR, the loan balance must be repaid within 5 years, and it is limited to 3 years for TDS / e-TDR.

Main advantages of the SBI loan against FD

Main advantages of the SBI loan against FD

Instead of breaking FD, here are the benefits one can get by applying for a loan against FD:

  • Depositors can benefit from a loan of up to 90% of their term or term account.
  • Interest is charged 1% above the nominal interest rate of SBI FD and interest is charged on a regular declining balance which also reduces the interest rate.
  • Besides the loan facility, the overdraft facility is also provided by SBI
  • There is no processing fee and even if the recipient pays the entire debt balance up front, no penalty is imposed.
SBI loan against FD interest rate

SBI loan against FD interest rate

Type of deposit return on investment
Domestic time / Fixed deposit 1% above the nominal interest rate of SBI FD
Fixed deposit NRE 1% above the nominal interest rate of SBI FD
Fixed deposit NRO 1% above the nominal interest rate of SBI FD
FCNR deposit (B) 2.90% above the 1-year MCLR
Procedure for opening an overdraft account with SBI FD

Procedure for opening an overdraft account with SBI FD

You must have an active OD account to get an overdraft amount. One can either enter the nearest SBI branch and open the A / c overdraft or use the online option if they have an online term deposit account. For this service, clients with domestic term deposits can easily apply. The procedures for applying electronically for an overdraft account on a SBI time deposit account are described below:

  • Log into your SBI net bank account using the required credentials i.e. user ID and password.
  • In the menu section, click on the option e-Fixed Deposit
  • Opt now for the option “Overdraft against fixed deposit”
  • Now your active deposits will be displayed on your device screen, select a deposit that you are ready to request overdraft against.
  • Now click on “Proceed” and confirm the amount of the overdraft, the interest rate applicable on the overdraft and the expiration date
  • Now you will get a high security password on your registered cell phone number, authenticate it by entering it in the required space.
  • Once you are done, your account will be activated successfully.
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