Interest rates and charges on loan against FD
Bajaj Finance offers loans against fixed deposits at a rate that is 2% p.a. above the deposit interest rate.
There are no hidden fees and processing charges on availing of a loan against your fixed deposit. There are no charges to foreclose your loan.
Frequently asked questions
A loan against FD facility enables you to avail of a loan against your fixed deposit to fund your financial requirements without having to liquidate all funds and lose out on returns at maturity.
There is no processing fee in case of a loan against FD.
No, there are no foreclosure or part-prepayment charges applicable on your loan against fixed deposit.
The rate of interest on your loan against a fixed deposit is 2% p.a. above the deposit interest rate.
Common fees include processing fees, part-prepayment fee, foreclosure charges and many more. These fees are typically charged upfront or deducted from the loan amount and can add to the total cost of the loan.
The tenure of a Bajaj Finance loan against fixed deposit is up to 36 months.
To avail a loan against a fixed deposit (FD) at low interest rates, follow these steps:
a. Check with your bank or financial institution if they offer this facility.
b. Ensure your FD is eligible for a loan, usually after a specific lock-in period.
c. The interest rate for the loan is typically 1% to 2% higher than the FD interest rate.
d. Compare offers from different banks and choose the one with the lowest interest rate and favorable terms.
Loan against FD interest rates are generally lower than regular loans. They are more cost-effective because the FD acts as collateral, reducing the risk for the lender. Typically, the interest rate for a loan against an FD is 1% to 2% higher than the FD's interest rate, making it a more affordable option compared to unsecured loans with significantly higher interest rates.
Fixed Deposit (FD) interest rates are influenced by several factors, including the tenure of the deposit, the amount invested, and the type of FD. Longer tenures and higher investment amounts generally attract higher interest rates. Special types of FDs, such as senior citizen FDs, often offer better rates.
A Loan Against Fixed Deposit (FD) allows depositors to borrow funds by using their FD as collateral. The interest rate for such loans is typically lower than regular personal loan rates, usually ranging from 1% to 2% above the FD interest rate.
The terms of a Fixed Deposit (FD), such as its tenure and interest rate, significantly impact loan eligibility and the applicable interest rate. Longer-tenure FDs with higher interest rates may offer better loan terms and lower interest rates, enhancing the overall borrowing capacity of the depositor.
