Are you looking to get a loan from the State Bank of India and searching for How to take a loan against FD in SBI online then you are at the right zone where I will share some of the details information for a loan against FD is a type of loan that is secured by using a fixed deposit as collateral. The borrower can use the funds from the fixed deposit as collateral to secure a loan from the bank or financial institution.
Table of Contents
The loan amount is typically a portion of the fixed deposit amount, and the interest rate on the loan is usually lower than on unsecured loans. The fixed deposit continues to earn interest while the loan is outstanding, and is returned to the depositor after the loan is repaid.
Loan Against SBI Fixed Deposit
SBI, the largest public sector bank in India, offers various types of loans, including loans against Fixed Deposits (FDs) to its customers.
In today’s world, people have a variety of needs such as education, home, vehicles and more, and SBI’s loan against FD option allows customers to access funds without having to break their fixed deposit.
This is a beneficial option for those seeking a loan, as the interest rate on these loans is typically lower than other types of loans available in the financial sector.
What are the Eligibility Criteria for Availing Loan Against SBI FD
To be eligible for a loan against SBI fixed deposit, the criteria are as follows:
- The applicant must be above 21 years of age
- Must have an active SBI FD account with the bank
- The FD account should not have matured when applying for the loan
- Customers holding TDR/STDR/e-TDR/e-STDR with SBI individually are eligible
- Registered with the bank in terms of depositing in RD/ e-RD/NRE/RFC/FCNR (B) are also eligible
- Businesses can only avail of this facility in the case of sole proprietorship or partnership firms.
Features of Loan Against SBI Fixed Deposit
The key features of loan against time deposits are as follows:
| Loan | Features |
|---|---|
| Type of loan available | Both demand and overdraft loans |
| Channels available | Internet Banking as well as through branches |
| Security | Granted on underlying fixed deposit |
| Margin | Up to 90% of the value of the fixed deposit |
| Processing fee | Nill |
| Repayment period | The period is fixed based on the repayment capacity of the borrower. |
| Interest rate | 1% above the relative fixed deposit rate |
What are the Benefits of a Loan Against SBI Fixed Deposit
Get Loan Upto 90% of the Fixed Deposit(FD)
Loan up to 90% of FD: Individuals can avail of loans up to 90% of the value of the term deposit. So, higher the amount of the deposit in the SBI fixed deposit, the better are the chances of securing a substantial amount as loan as and when the need arises.
Demand and overdraft loans available
SBI offers both demand and overdraft loans for its customers, which can be tailored to their specific needs. For online overdraft loans against SBI FD, the minimum loan amount is Rs.25,000 and the maximum loan amount that can be availed is Rs.5 crore. However, it’s important to note that the maximum loan amount can never exceed 90% of the amount invested in SBI term deposit.
The best thing is there is no processing fee or penalties in loan against FD
SBI does not charge any processing fees for loans against fixed deposits, and there are no prepayment penalties. This makes loans against SBI time deposits quite popular among borrowers. The absence of processing fees and no penalties for early repayment offers customers a lot of flexibility compared to other loans offered by the bank.
The interest rate charged is mere 1%
The interest rate on the loan amount against the FD is only 1% above the relative time deposit rate. The interest rates are lower compared to other types of loans provided by the bank due to the borrower’s existing relationship with the bank and the fact that the loan falls under the secured category.
The repayment period is fixed based on the individual’s repayment capacity
Another benefit of availing SBI’s loan against FD is that the repayment period is flexible and based on the borrower’s repayment capacity. The maximum repayment time for SDTR/e-STDR is 5 years, and for TDR/e-TDR it is 3 years for overdraft loans availed online. For loans availed at the branch, the bank officials will determine the repayment period based on the borrower’s capability to repay the borrowed amount.
Interest is provided on the FD
The security interest is provided on fixed deposits, which is an additional benefit as it allows the borrower to earn interest on the existing fixed deposit. This helps the individual in the long run by enabling them to repay the borrowed amount against the existing fixed deposit.
How to Apply for a State Bank of India Loan Against Fixed Deposits
I hope you are maybe interested to apply for this loan against FD in SBI online. So let us see the process step by step now to make it more clear to the process.
Steps to Apply for SBI’s Loan Against FD Online:
- Log into the SBI online portal using your login credentials
- Select ‘e-Fixed Deposit’
- Choose ‘Overdraft against Fixed Deposit’
- All your deposits will be displayed, choose one fixed deposit
- Select ‘Proceed’
- Click on ‘Submit’
- Enter your high-security password, which will be sent to your registered mobile number
- Your account will be opened
What are the Repayment Options for State Bank of India Loan Against Fixed Deposits
A repayment schedule will be determined by the bank based on your repayment capacity for the loan that you have taken via the SBI Bank branches.
The maximum repayment period is 5 years for STDR/e-STDR and 3 years for TDR/e-TDR for Overdrafts availed online.
Before applying for a loan against Fixed Deposits, keep these points in your mind:
- Loans are provided only against fixed deposits that are free of mortgage or impediment.
- Loans cannot be availed from term deposits opened in the name of minors.
- In case the loan was availed from an FD that was opened jointly, all holders of the term deposit will have to bear the responsibility of repaying the borrowed amount.
- The borrower cannot close or break the time deposit account after availing the loan.
- Banks reserve the right to close the FD account against which the loan was borrowed if the borrower fails to repay the amount borrowed.
FAQs that are been asked for a Loan Against SBI FD
Q. How is the loan against SBI Fixed Deposit provided?
The loan is provided to the borrower as an overdraft based on the amount deposited by the borrower in the fixed deposit.
Q. Can I take a loan against FD immediately?
Yes, it is possible to apply for a loan against your FD. The fees associated with a loan against a fixed deposit typically include the interest rate on the loan, which is usually 2% to 3% higher than the FD interest rate. However, there are no processing fees when taking out a loan against a savings or fixed deposit account.
Q. Is a demand loan facility also available?
Yes, the demand loan facility is an option for the potential borrower.
Q. Can I avail 90% of my TDR/e-TDR as an overdraft through the internet banking platform?
No, as of now you can avail of only 75% of your TDR/e-TDR as an overdraft.
Q. can we take loan on FD in sbi
Yes
Q. Are NRIs eligible for loans against fixed deposits?
Yes, they are eligible and can avail of loans as long as their fixed deposit accounts are operational.
Q. Can I get overdraft against FD sbi yono
Yes, obviously you can apply for an overdraft in sbi yono app itself.
Q. Is the online overdraft facility available against Tax Savings and Recurring deposits?
No, the facility is not available with regard to Tax Saving fixed deposits and Recurring deposits.
Q. How to avail of the facility online?
The facility can be availed by visiting onlinesbi.com and logging into internet banking by using the username and password. The details are available under the e-Fixed Deposit tab.
Q. Can joint holders of a fixed deposit apply online?
No, joint holders of a fixed deposit account can’t apply online. If they intend to apply for the loan, they need to do so by visiting an SBI branch.
Q. Is there a limit on the maximum amount when the facility is availed through the SBI branch?
No, there isn’t any limit on the maximum loan amount that can be availed by the borrower when he/she applies through the bank.
Q. Is the interest rate the same for all the applicants who wish to avail of the facility?
No, it is not the same as interest rates vary from one another depending on the fixed deposit schemes.
Q. How to repay overdraft against FD sbi
Repay the useable amount through internet banking, SBI Yono App, or visit a branch to repay the amount.
Q. How can I repay the loan?
One can repay the borrowed amount through internet banking or by visiting an SBI branch.
Q. Official Website of SBI to apply for Loan against FB
You can visit the official website of SBI here