In today’s time, fixed deposit is one of the most popular financial instruments known to us. By investing in fixed deposit, people can save and earn money at the same time. It also provides the investors with a comparatively higher interest rate than a regular saving account. This, in turn, makesfixed deposit a preferable investment option. The ease of investment,guaranteed returns, and flexibility aresome of the added advantages of fixed deposits.
In case of unforeseen events and emergencies, people often look for loans from various sources. However, most people aren’t aware of the benefits of availing a loan against a fixed deposit. Here, we are going to discuss the working as well as the conditions associated with loans against fixed deposit.
How is it given?
Loan against Fixed Deposit is a secured loan, where you can pledge your fixed deposit as collateral, in return for the loan amount. It is provided in the form of an overdraft against your deposited amount. It is an alternative given to you instead of breaking the fixed deposit prematurely.
Some of the major features and benefits are mentioned below.
High Loan Amount – The loan amount that can be sanctioned varies from one financial institution to another. However, you can get a loanamount of up to 95% of the fixed deposit investment. Therefore, higher investment will make you eligible for a higher loan amount.
Hassle Free – Most financial institutions offer loans against fixed deposits without much hassle. With minimal documentation, the process of applying for a loan against fixed deposit is fast and simple.
Low interest rate – The interest rate for loans availed against fixed deposits are comparatively lower than Interest rates for loans obtained by other means.
Flexible Repayment – The loan amount can be paid in flexible terms. Loan against fixed deposit doesn’t have strict payment dates and terms.
Liquidity – In case of emergencies, loans obtained against fixed deposits offer instant liquidity. These loans will not only fulfill your urgent monetary needs but also allow you to keep your fixed deposit secure.
Low processing fee – Loan against fixed deposit can be availed at negligible processing fee.
No prepayment charges – Most financial institutions do not charge a prepayment fee in case of early payment of the loan.
To sum it up, loan against fixed deposit is a great option to raise short-term money without breaking the fixed deposit. With the help of leading NBFCs like Finserv Markets,you can avail easy loan against fixed deposits at lower interest rates, with quick processing, flexible repayment options,and minimal documentation.
Moreover, Finserv Markets can also be a great option if you are looking forward to opening your fixed deposit account. High returns, competitive interest rates,and fast online process are some of the advantages of opening a fixed deposit account with Finserv Markets.
Finserv Markets, from the house of Bajaj Finserv, is an exclusive online supermarket for all your personal and financial needs. Loans, Insurance, Investment, and exclusive EMI store, all under one roof- anytime, anywhere!